HK Stock Market Move | UNITED LAB (03933) rose more than 7%, planning to spend up to 200 million Hong Kong dollars on repurchasing shares in the open market.

UNITED LAB (03933) rose by more than 7%, as of the time of writing, the stock has risen by 7.3% to HKD 12.06, with a trading volume of HKD 1.51 billion. In terms of news, UNITED LAB announced that it plans to spend up to HKD 2 billion to repurchase shares in the open market at an appropriate time (recommended share repurchase). The repurchased shares will be subsequently cancelled. The recommended share repurchase will be paid with internal cash. The Board of Directors believes that the company currently has a strong financial position and considers that the recommended share repurchase is in the overall interest of the company and shareholders. The recommended share repurchase and the subsequent cancellation of the repurchased shares can increase the value of the shares and improve shareholder returns. BOCOM INTL pointed out that the impact of the new round of tariffs on the fundamentals of the A/H pharmaceutical sector is limited, mainly because: 1) current drugs are temporarily exempt from tariffs; 2) even if drug tariffs are implemented, they will not have a direct impact on BD transactions that have already occurred or are yet to occur; 3) for mature commercialized innovative drugs, the impact of increased tariffs on the sales gross profit margin of innovative drugs should be within a low single-digit percentage point level; 4) as top enterprises with a large share of CMO business gradually expand their production capacity globally, the impact of tariffs will gradually decrease; 5) China's imposition of retaliatory tariffs mainly affects capital expenditures, and most of the materials/consumables in the cost side can be transferred to China or other countries.