Morgan Stanley says Hengrui’s third-quarter revenue and profit were both slightly above market consensus: innovative drug sales accelerated and recognized collaboration revenue increased, but generic drug sales continued to decline and product gross margin also fell.
As excavator industry growth slows, Hengli Hydraulics’ excavator hydraulics business remains resilient. Greater scale in new businesses and at its Mexico plant improved the gross margin quarter on quarter, and management raised its full-year revenue expectation for the precision business.
Third-quarter revenue in 2026 fell 9% year over year, broadly in line with Morgan Stanley’s and market expectations; gross margin was below expectations, while lower expenses cushioned some of the pressure on profit.
Shipping bottlenecks and the product mix weighed on third-quarter results; Morgan Stanley expects shipments to recover, but more than half of the full-year planned monopile shipments remained outstanding as of late October.
Morgan Stanley estimates that Baoshan Iron & Steel’s gross profit per tonne rose by about 4 yuan quarter on quarter in the third quarter, beating its expectations; the recovery in steel prices lagged the rise in raw-material prices, and gross profit from non-steel businesses also declined.
Third-quarter core FFO exceeded market expectations, while growth in both same-store revenue and net operating income accelerated from the second quarter. Los Angeles accounted for about forty percent of the improvement in revenue growth, and lower expenses also amplified profit growth.
Third-quarter new orders substantially exceeded company guidance, with large SMT orders and orders placed early lifting the quarter’s base; fourth-quarter revenue growth is expected to come mainly from SMT, while advanced packaging products have longer lead times.
Dazodalibep met the primary endpoint in patients with systemic disease activity, and dosing every four weeks also improved patient-reported dryness symptoms. Morgan Stanley considers it highly competitive, although differences in placebo responses limit cross-trial comparisons.
Morgan Stanley expects China’s export share to keep rising and Industry 5.0 to create long-term investment opportunities. But weaker employment transmission, household deleveraging and excess capacity make it difficult for strong exports to translate quickly into broad-based reflation.
Management says demand from AI data centers, automotive and industrial applications is strong, while smartphone demand is relatively weak; overseas 2.5D packaging is scheduled for commercial production in the first quarter of 2027, while domestic progress depends on customer certification.
Asia’s investment cycle does not rely solely on AI, and exports and balance sheets also provide a buffer against high interest rates. But if oil prices remain above 120 dollars per barrel, central banks raise rates more than expected and AI investment declines, pressure on growth will increase markedly.
Morgan Stanley cut its 2026–2028 earnings per share forecasts for Shuanghui Development by 4%–5% and lowered its price target from 20.30 yuan to 19.40 yuan. New channels could generate revenue, but marketing spending and weak foodservice demand are constraining profit improvement.
Management plans to integrate research and development, sales, and manufacturing across the robotics business and sees overseas opportunities for coaxial gearboxes; revenue at the Hungarian plant grew, while its net margin was approximately 2% in the first three quarters.
Bond issuance by large technology companies remains concentrated in the investment-grade market, but a more regular issuance schedule could ease the pressure on the market to absorb it. Morgan Stanley also believes high interest rates are putting lower-quality borrowers to the test, while government bond yields are driven primarily by macroeconomic factors.
A Together AI expert interviewed by Nomura says DeepSeek 4.1 Flash is widely popular on the platform thanks to its sufficient capabilities for everyday tasks and lower costs. Agent applications and overseas compute demand from Chinese model developers also create opportunities for inference providers.
Nomura’s model forecast for the central parity rate on 28 October was 6.6711, 460 points below the previous fixing; with the counter-cyclical factor included, the forecast rises to 6.6923.
Global business growth accelerated in the third quarter, partly benefiting from the recovery of revenue delayed in the second quarter. The company raised its full-year revenue and profit guidance, and Goldman Sachs subsequently increased its earnings forecasts and price target.
Goldman Sachs expects fourth-quarter DRAM shipment growth and the ramp-up of HBM4 to continue lifting operating profit, and has raised its earnings-per-share forecasts for 2027–2028; however, investment asset losses reduced net profit quarter on quarter in the third quarter.
Search revenue growth fell from 17% in the previous quarter to 12%. Cloud revenue beat market consensus but fell short of some buy-side thresholds; services margins declined sequentially for a second straight quarter, and free cash flow turned negative.
The Federal Reserve held rates steady while the Bank of Canada raised them. Goldman Sachs expects the next rate hikes in both the US and Europe in December, while also monitoring the US midterm elections and returns on AI investment.
