Market Activity - On July 11, the A-share market showed active trends with 61 stocks hitting the daily limit up, and a total of 17 stocks achieved consecutive limit ups, resulting in a success rate of 69% for limit orders [1] - The market focused on several strong stocks, with Sifang New Materials achieving a remarkable five consecutive limit ups, and Guotou Zhonglu also performing well with a T-shaped limit up, reaching five consecutive limit ups [1] - Stocks like Jingyi Co. and Yamaton achieved their fifth limit up within eight trading days through reverse limit up strategies [1] Stock Performance - Among the stocks with consecutive limit ups, Forest Packaging demonstrated a strong performance with seven consecutive limit ups, while companies like Shuangwei New Materials, Nanhua Futures, and Hemei Group achieved three consecutive limit ups [1] - ST Yazhen maintained an impressive performance with 12 limit ups over 15 days, while Yamaton and Jingyi Co. kept a pace of five limit ups over eight days [2] Market Sentiment and Capital Inflow - The market showed positive sentiment with active participation from investors, as evidenced by over 15 billion yuan in limit order funds supporting Shuangwei New Materials, and several other stocks like Sifang New Materials and Jin'an Guoji also receiving billions in limit order funds [1] - The total trading volume in the Shanghai and Shenzhen markets exceeded 1.7 trillion yuan, marking the highest level in nearly four months, indicating a significant increase in overall market activity and investor engagement [1] Sector Performance - The non-ferrous metal sector was notably active, with stocks like Hunan Silver and China Nonferrous Metals achieving limit ups [1] - The rare earth permanent magnet sector also showed strength, with companies like Northern Rare Earth and Jingyuntong achieving two consecutive limit ups, while Baogang Group and China Rare Earth also hit limit ups [1] - The securities IT sector attracted capital interest, with stocks like Jinzhen Co. and Guo'ao Technology hitting limit ups [1]

Market Overview - The market showed a strong upward trend in the morning, with both the Shanghai Composite Index and the ChiNext Index rising over 1% [1] - The total trading volume in the morning session reached 1.03 trillion [1] Sector Performance - The rare earth permanent magnet sector experienced a collective surge, with stocks such as Northern Rare Earth, Baogang Co., and Shenghe Resources hitting the daily limit [1] - Financial stocks, including brokerage and banking sectors, continued their strong performance, with stocks like China Merchants Bank and Harbin Investment hitting the daily limit, while Industrial and Commercial Bank of China and Zhihang Innovation reached new highs [1] - The innovative drug concept remained active, with stocks like WuXi AppTec, Kailai Pharmaceutical, and Lianhuan Pharmaceutical also hitting the daily limit [1] - Conversely, the PCB concept stocks faced adjustments, with Jin'an Guoji hitting the daily limit down [1] Stock Movement - A total of 2,667 stocks rose, with 50 stocks hitting the daily limit up; 2,237 stocks declined, with 10 stocks hitting the daily limit down [1] - 21 stocks experienced a "炸板" (a term indicating a stock hitting the limit up and then falling back), with a rate of 33% [1]

联环药业再度涨停，5个交易日内录得4个涨停，累计涨幅为38.58%，累计换手率为72.67%。截至9:44， 该股今日成交量4315.75万股，成交金额6.33亿元，换手率15.12%。最新A股总市值达42.76亿元。 （文章来源：证券时报网） 近日该股表现 | 日期 | 当日涨跌幅（%） | 换手率（%） | 主力资金净流入（万元） | | --- | --- | --- | --- | | 2025.07.10 | 10.02 | 15.86 | 13079.20 | | 2025.07.09 | -5.35 | 26.39 | -10327.43 | | 2025.07.08 | 10.01 | 5.90 | 2787.30 | | 2025.07.07 | 9.99 | 9.40 | 11549.88 | | 2025.07.04 | 2.27 | 10.12 | 1423.80 | | 2025.07.03 | 2.22 | 8.11 | 1197.14 | | 2025.07.02 | 1.17 | 9.22 | -881.15 | | 2025.07.01 | 1.89 | 7.79 | -14 ...

A股创新药概念早盘涨幅居前，常山药业涨超16%，康辰药业涨停，联环药业涨超9%，广生堂、立方制 药、华北制药等个股跟涨。日前国家医保局公布工作方案，今年将首次制定商保创新药目录。 ...

Market Overview - The market experienced a strong upward trend, with the Shanghai Composite Index stabilizing above 3500 points. Real estate stocks surged in the afternoon, with several stocks such as Huaxia Happiness and Deep Deep Housing A hitting the daily limit. Major financial stocks continued to perform well, with the four major banks reaching historical highs. The photovoltaic sector also saw a rebound, particularly in the organic silicon segment, with multiple stocks hitting the daily limit. Overall, over 2800 stocks in the Shanghai and Shenzhen markets rose, with a total transaction volume of 1.51 trillion yuan [1]. Real Estate Sector - The real estate sector saw significant gains, with stocks like Sifang New Materials and Yucheng Development hitting the daily limit. The National Development and Reform Commission emphasized increasing investment in new urbanization, which catalyzed the market. Additionally, around 20 cities, including Chongqing and Shenyang, have supported and optimized the "commercial to public" policy this year [4][5]. - According to the China Index Academy, to alleviate insufficient effective demand, some cities may further relax purchase and loan restrictions, while also accelerating the construction of affordable housing and optimizing land supply structures to promote a stable and healthy real estate market [5]. Pharmaceutical Sector - The pharmaceutical sector remained active, with stocks like Saily Medical and Lianhuan Pharmaceutical hitting the daily limit. Merck announced a $10 billion acquisition of Verona Pharma to enhance its COPD treatment product line. The National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, which include 16 initiatives to strengthen support for innovative drug research and development [6][7]. - The trend of Chinese innovative drugs going global is expected to enhance profitability and market space, leading to improved industry valuation levels. The adjustment plan for the national medical insurance directory and commercial insurance innovative drug directory is anticipated to be implemented in November [8]. Hydrogen Energy Sector - The hydrogen energy sector showed strong performance, with stocks like Huaguang Huaneng and Tianwo Technology hitting the daily limit. The emphasis on developing hydrogen energy as part of a new energy system was highlighted during a recent inspection by the General Secretary in Shanxi [9][10]. - The strategic position of hydrogen energy has been established, with local policies supporting its development. The renewable energy green hydrogen production capacity is expected to reach over 400,000 tons by 2025 in the Sanbei region. The construction of hydrogen pipelines is also entering a capital-intensive phase, with major state-owned enterprises as primary investors [10]. Other Notable Sectors - Other sectors such as consumer goods and finance showed localized activity, while military and digital currency high-priced stocks experienced declines [11]. - The market is also witnessing a focus on performance as the mid-year reporting period approaches, with expectations for continued improvement in the performance of innovative drugs and their supply chains [8].

New Stock Listings - The new stock "同宇新材" (code: 301630) is listed at an issue price of 84 on July 10, 2025[1] - "中程退" (code: 300208) and "退市锦港" (code: 600190) have 6 trading days remaining until their last trading day[1] - "恒立退" (code: 000622) has 3 trading days remaining until its last trading day[1] Delisting and Trading Alerts - "退市九有" (code: 600462) has 2 trading days remaining until its last trading day[1] - "工智退" (code: 000584) will have its last trading day on July 10, 2025[1] - "美迪西" (code: 688202) is listed with no specific trading alerts mentioned[1] Market Volatility - "北方长龙" (code: 301357) has been flagged for severe abnormal fluctuations[1] - "浙江东日" (code: 600113) and "诺德股份" (code: 600110) have also been noted for abnormal trading activities[1] - "长春一东" (code: 600148) is included in the list of stocks with trading alerts[1]

Group 1 - The core viewpoint of the articles highlights the renewed activity in the innovative drug sector, driven by supportive government policies and recent approvals of innovative drugs in the domestic market [1][2] - The National Healthcare Security Administration and the National Health Commission have issued measures to support the high-quality development of innovative drugs, including 16 specific measures across five areas [1] - The introduction of a commercial health insurance directory for innovative drugs aims to include high-value, clinically significant drugs that are not yet part of the basic medical insurance list, indicating a shift towards multi-layered medical insurance systems [1] Group 2 - East China Securities emphasizes the strong policy support for innovative drug development, which is expected to lead to significant growth in the market as new drugs are approved and commercial insurance directories are established [2] - The successful international approval of domestic innovative drugs, such as the approval of Shuwotini by Dize Pharmaceutical in the U.S., showcases the international competitiveness of local innovative drugs [2] - The innovative drug sector is identified as a core investment theme within the biopharmaceutical industry, with recommendations to explore investment opportunities in related segments such as medical devices, traditional Chinese medicine, chain pharmacies, and medical services [2]

Market Overview - The pharmaceutical sector experienced a significant surge on July 10, with stocks such as Seer Medical, Lianhuan Pharmaceutical, and Kangchen Pharmaceutical hitting the daily limit [1] - Seer Medical recorded a price of 25.61 with a rise of 10.01%, Lianhuan Pharmaceutical reached 13.62 with a 10.02% increase, and Kangchen Pharmaceutical was at 40.68 with a 10.01% gain [2] Key Events - Merck, a major U.S. pharmaceutical company, announced its intention to acquire UK-based Verona Pharma for approximately $10 billion to enhance its product line for chronic obstructive pulmonary disease (COPD) [3] - Former President Trump threatened to impose a 200% tariff on pharmaceuticals, although this may not take effect immediately, allowing pharmaceutical companies a one-year buffer [3] - The National Healthcare Security Administration and the National Health Commission released measures to support the high-quality development of innovative drugs, including 16 initiatives to enhance support for R&D and encourage clinical application [3] Institutional Insights - The trend of Chinese innovative drugs entering international markets is expected to grow over the next 3-5 years, driven by improved innovation capabilities and profitability of Chinese pharmaceutical companies, which will enhance industry valuation levels [4] - The upstream raw material drug sector has seen a valuation adjustment, now positioned at relatively low levels, with the commercialization of GLP-1 products expected to drive growth in upstream peptide raw materials [4] - As the mid-year reporting period approaches, performance metrics will become a focal point for the market, with expectations for continued improvement in innovative drugs and their supply chains [4]

Report Summary 1. Report Industry Investment Rating - No information provided regarding the industry investment rating. 2. Core Viewpoints - The report focuses on the in - depth investigation of Lianhuan Pharmaceutical, covering the company's strategic positioning, responses to challenges, and future development plans [26][28][30]. 3. Summary by Directory 3.1. Research Basic Situation - The research object is Lianhuan Pharmaceutical, belonging to the chemical pharmaceutical industry. The reception time was July 9, 2025. The company's reception staff included the chairman, board secretary, general manager, and other key personnel [16]. 3.2. Detailed Research Institutions - The institutions participating in the research include Jiangsu Securities Industry Association, China CITIC Bank, CITIC Construction Securities, Huabao Securities, Yida Capital, Xianghe Investment, Jiazhi Private Equity, Junzilan Capital, Yuanfang Capital, Jintou Assets, Yipin Assets, Deep Vision Technology, and Yangzhou Newspaper Group [17][18]. 3.3. Proportion of Research Institutions - Other types of institutions account for 54%, asset management companies 23%, securities companies 15%, and joint - stock commercial banks 8% [20][21][22]. 3.4. Main Content Information - **Event Background**: On July 8, 2025, CITIC Construction Securities Yangzhou Jiangyang Middle Road Securities Business Department, together with the Jiangsu Securities Industry Association, organized an event to visit Lianhuan Pharmaceutical [25]. - **Strategic Positioning and Core Competitiveness**: The company adheres to the "innovation - driven development" strategy. In 2024, the R & D investment was about 277 million yuan. It focuses on innovation drugs, high - end preparations, and large - variety generic drugs in R & D, promotes business model innovation in sales, and improves quality stability through intelligent transformation in production. It has passed the FDA on - site inspection twice and won the "Advanced - level Intelligent Factory in Jiangsu Province" title [26]. - **Impact of Centralized Procurement and Countermeasures**: The company recognizes the strategic value of centralized procurement policies and has established a dynamic policy research mechanism. It copes with challenges by optimizing product structure, accelerating innovation R & D, and deepening hospital - enterprise cooperation [28]. - **Logic and Synergy of Mergers and Acquisitions**: The acquisition of Changle Pharmaceutical aims at strategic synergy, layout optimization, production line complementarity, and cost advantages. The acquisition of Longyi Pharmaceutical is to expand CSO business and improve the pharmaceutical circulation layout. After the acquisitions, the company achieves all - round synergy through various measures [28]. - **Market Value Management Plan**: As a state - owned enterprise, the company attaches great importance to market value management. It is drafting a special market value management plan, focusing on R & D investment, market expansion, capital operation, and investor relationship management, and has maintained a 30% annual dividend ratio [29][30]. - **Future Development Strategy**: The company will continue to adhere to a market - oriented and innovation - centered development strategy, optimize product structure, expand the market, improve management efficiency, and carry out strategic investments and cooperation in a timely manner [30].

Group 1 - The company has made strategic acquisitions of Chang Le Pharmaceutical and Long Yi Pharmaceutical to enhance overall competitiveness through synergy, optimization of layout, complementary production lines, and cost advantages [1] - The acquisition of Long Yi Pharmaceutical aims to expand the CSO business and improve the pharmaceutical distribution sector, leveraging its market foundation and sales network in the Sichuan-Chongqing region to quickly increase local market share [1] - Post-acquisition, the company is focusing on improving efficiency through coordinated R&D project management and resource allocation, optimizing product layout to reduce costs, and integrating sales networks for resource sharing [1] Group 2 - The company is concentrating on innovative drugs, high-end formulations, and large-volume generic drugs, with a R&D team led by over ten PhDs and a planned R&D investment of approximately 277 million yuan in 2024 [1] - The company is innovating in sales by building a compliance system internally and enhancing market expansion externally [1] - The company is enhancing quality stability through intelligent transformation in production, with its new facility set to pass FDA inspections again in August 2024 [1] Group 3 - The company's core new drug LH-1801 (SGLT2 inhibitor) is in Phase III clinical trials, with 615 patients enrolled by January 2025, and the follow-up is expected to conclude in January 2026 [2] - LH-1801 shows significant synergistic effects for diabetic patients with hypertension, potentially opening a market worth 2 billion yuan upon approval in 2026 [2] - The prevalence of hypertension among adults in China is 31.6%, with the market for antihypertensive drugs dominated by sartans, which had sales of 2.2 billion yuan and 2 billion yuan for Irbesartan and Valsartan respectively in 2023 [2] Group 4 - The company recognizes the strategic value of centralized procurement policies for the pharmaceutical industry and has established a dynamic policy research mechanism to enhance its ability to respond to market changes [3] - The company aims to transform policy challenges into new opportunities for corporate transformation and upgrading through product structure optimization, accelerated innovation, and deepened cooperation with hospitals [3]