Zhangzhou Pientzehuang Pharmaceutical Co Ltd

Haier Biomedical has released its 2026 interim report. First-half operating revenue reached a record high of 1.296 billion yuan, up 8.45 percent year on year, while net profit attributable to the parent company was 147 million yuan, up 3.28 percent. Both revenue and profit growth in the second quarter were faster than in the first quarter. Pharmaceutical customers were the main driver of revenue growth, with related revenue up 23 percent in the first half. Domestically, the company deepened cooperation with leading pharmaceutical firms including WuXi Biologics, GenSci, Pien Tze Huang and Qilu Pharmaceutical. Overseas, it newly entered research and production bases in countries such as the United Kingdom and Singapore, and has now served nearly half of the world's top 25 pharmaceutical companies. Growth continued in major global markets, with the European Union, the United Kingdom and the United States together rising 17 percent. Smart medication solutions expanded rapidly into 10 countries including Thailand, Vietnam, Malaysia, Morocco and Saudi Arabia. The low-temperature business grew 13 percent year on year, achieving positive growth for four consecutive quarters. The laboratory solutions business grew 19 percent, and the smart medication business grew 11 percent. Revenue from AI-related businesses rose to 18 percent of total revenue, up 3 percentage points from 2025. The company expects both revenue and profit growth to accelerate in the second half, with full-year profit growth broadly matching revenue growth.

China's A-share market underwent volatile adjustments today, with the Shanghai Composite Index falling 1.85 percent and losing the 3,900-point level. However, the traditional Chinese medicine sector surged against the market, with Pien Tze Huang and ZBD Pharma hitting their daily limit up in the afternoon. The pharmaceutical and biological industry saw a net inflow of over 5 billion yuan in main funds, and the TCM sector index rose more than 3 percent at one point during the session, marking seven consecutive positive daily candlesticks. Harbin Pharmaceutical Group locked in its fifth straight daily limit up, while Hainan Haiyao achieved its second consecutive daily limit up. Chip stocks, on the other hand, suffered a broad sell-off, with the semiconductor sector index plunging more than 5 percent. Companies such as JCET and Demingli hit limit down in batches. Global chip stocks also faced heavy selling, with South Korea's SK Hynix tumbling 11.53 percent and Japan's Kioxia plummeting 15.03 percent. On the news front, the State Council approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine, and the 2026 edition of the National Essential Medicines List added 48 new proprietary Chinese medicines.

Traditional Chinese medicine leader Pien Tze Huang hit its first daily limit up since last year on July 16, closing at the daily limit up price. The traditional Chinese medicine sector continued to climb that day, with ZBD Pharmaceutical also hitting limit up, and Longshenrongfa, Biovalley, Tongrentang and others rising over 5 percent. Pien Tze Huang has been weakening since touching a high of 473.05 yuan in July 2021, falling over 68 percent by July 16, with 129,900 shareholders as of the end of the first quarter of 2026. Recently, policy tailwinds for the traditional Chinese medicine industry have been frequent. The State Council approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine, and three departments including the National Health Commission released the 2026 edition of the National Essential Medicines List, with the number of proprietary Chinese medicine varieties increasing to 318. Sealand Securities believes the traditional Chinese medicine sector is likely to see an earnings recovery in 2026, with easing cost pressures, and the new essential medicines list will open up medium- to long-term growth potential, suggesting investors pay attention to sector-wide opportunities.