Core Viewpoint - The A-share market has seen a significant rise in flu-related stocks due to a noticeable increase in flu activity across China, with most provinces entering the flu epidemic period [1] Group 1: Stock Performance - Hendi Pharmaceutical has increased by over 14%, while Hualan Biological has risen by 11% [1] - Other notable performers include Peking University Pharmaceutical with a 10% increase, and Jinshi Yao with a rise of over 7% [1] - Several companies, including Teva Pharmaceutical, Erkang Pharmaceutical, and others, have also shown gains of over 5% [1] Group 2: Market Context - Recent data from the China CDC indicates that flu virus cases have surpassed other respiratory viruses, marking a significant shift in the current flu season [1] - Since mid-October, sales of related medications, such as Oseltamivir, have increased, with production running continuously [1]

Core Insights - The Chinese medicine market is experiencing rapid growth, driven by favorable policies and increasing market demand, as highlighted by the recent 12th World Traditional Chinese Medicine Conference held in Sydney, Australia [1][2]. Group 1: Market Performance - As of November 10, 2025, the Zhongzheng Traditional Chinese Medicine Index (930641) rose by 1.11%, with notable increases in stocks such as Zhongsheng Pharmaceutical (002317) up 3.69% and Kangyuan Pharmaceutical (600557) up 3.22% [1]. - The Traditional Chinese Medicine ETF (159647) increased by 0.88%, with the latest price reported at 1.03 yuan [1]. Group 2: Industry Growth Drivers - The conference attracted over 800 representatives from 24 countries, emphasizing the global interest in the dissemination and technological innovation of traditional Chinese medicine [1]. - Pacific Securities notes that the industry is supported by comprehensive measures across supply, payment, and demand sides, including registration, review, quality control, and cultural promotion [1]. Group 3: Key Constituents - As of October 31, 2025, the top ten weighted stocks in the Zhongzheng Traditional Chinese Medicine Index accounted for 54.92% of the index, including major players like Yunnan Baiyao (000538) and Tongrentang (600085) [2].

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology industry [1]. Core Views - The report highlights a positive change in the specialty raw materials sector, recommending companies such as Aorite and Prolo Pharmaceuticals [1]. - The report suggests that the Q3 performance of raw material pharmaceutical companies has reached a bottom, indicating potential recovery in profitability as high-cost inventory is consumed [19][20]. Summary by Sections Investment Highlights - The recommended sub-industry rankings are: Innovative Drugs > Research Services > CXO > Traditional Chinese Medicine > Medical Devices > Pharmacies [3][12]. - Specific stock recommendations include: - From raw materials: Aorite, Qianhong Pharmaceutical - From Traditional Chinese Medicine: Zorui Pharmaceutical, Fangsheng Pharmaceutical, Dong'e Ejiao - From medical devices: United Imaging Healthcare, Yuyue Medical - From AI pharmaceuticals: Jingtai Holdings - From GLP-1 sector: Lianbang Pharmaceutical, Borui Pharmaceutical, Zhongsheng Pharmaceutical, and Innovent Biologics - From PD-1/VEGF dual antibodies: Sanofi Biopharmaceuticals, Kangfang Biologics, and Rongchang Biopharmaceuticals - From innovative drugs: Innovent Biologics, BeiGene, HengRui Medicine, Zai Lab, Baillie Tianheng, Kelun Pharmaceutical, Dize Pharmaceutical, and Haizheng Pharmaceutical [3][15]. Industry Trends - The A-share pharmaceutical index has seen a year-to-date increase of 18.2%, while the Hang Seng Biotechnology Index has increased by 76.6% [6][11]. - The report notes that the raw material pharmaceutical sector is under pressure due to high base effects and declining prices, with significant revenue impacts [19][20]. R&D Progress and Company Dynamics - Recent approvals include Novartis' radioligand therapy drug, which received dual indications for prostate cancer treatment [2]. - The report provides an overview of ongoing clinical trials and drug approvals, emphasizing the importance of innovation in the pharmaceutical sector [30]. Market Performance - The report indicates that the pharmaceutical sector has experienced adjustments, with notable stock performances including significant gains for companies like Hezhong China (+61%) and Wanze Shares (+30%) [11]. - The report also highlights the performance of various pharmaceutical stocks, noting both gains and losses in the market [16][17]. Raw Material Pricing Trends - The price of 6-APA has dropped significantly, from 370 RMB/kg in 2022 to 180 RMB/kg in October 2025, a decrease of 51% [23]. - The price of Amoxicillin has also decreased from 320 RMB/kg in January 2023 to 190 RMB/kg in October 2025, a decline of 41% [23]. Conclusion - The report suggests that as high-cost inventory is depleted, the gross margins for raw material producers are expected to improve, indicating a potential recovery in profitability for companies like Fuxiang Pharmaceutical and Lukang Pharmaceutical [19][23].

Core Viewpoint - Recent data indicates a significant rise in influenza activity in China, with a notable increase in patients visiting hospitals for treatment, prompting the need for early antiviral therapy and consideration of various factors in drug selection [1][2][3] Group 1: Influenza Activity - The latest report from the Chinese Center for Disease Control and Prevention shows a marked increase in influenza activity, particularly in southern provinces, with the percentage of influenza-like illness (ILI) cases reported at 4.6%, up from 4.1% the previous week [2] - Northern provinces reported an ILI percentage of 5.1%, significantly higher than the previous week's 3.7% and above levels from 2022, 2023, and 2024 [2] - A total of 347 influenza-like illness outbreaks were reported nationwide, with 245 cases identified as A(H3N2) [2] Group 2: Treatment and Drug Approval - The increase in influenza cases has led to a rise in hospital visits, particularly in pediatric departments, with doctors recommending early antiviral treatment within 48 hours of symptom onset [4] - Oseltamivir remains the preferred antiviral treatment, especially for children and immunocompromised patients, with over 120 approvals for related products from various companies [4][5] - The market for oseltamivir is dominated by Dongyangguang Pharmaceutical, holding over 70% market share in the past three years [4] Group 3: New Drug Developments - Several new RNA polymerase inhibitors have been approved in China, with the year 2025 being referred to as the "Year of Domestic Influenza New Drugs" [1][6] - Roche's Marbofloxacin has seen a significant increase in demand, with supply pressures leading to local production initiatives [6][7] - Other domestic companies, such as Qingfeng Pharmaceutical and Zhongsheng Pharmaceutical, have also launched new antiviral drugs, contributing to a broader range of treatment options for influenza [7][8] Group 4: Market Dynamics - The price of Marbofloxacin ranges from 195 to 234 yuan per pack, with no adjustments made by Roche despite increased demand [7] - Companies like Haizheng Pharmaceutical have reported a significant rise in demand for their antiviral products, with ongoing supply guarantees in place [8][9] - The market is seeing increased competition as more domestic firms enter the RNA polymerase inhibitor space, with several products currently in clinical trials or awaiting approval [9]

Core Viewpoint - The company Zhongsheng Pharmaceutical (002317) is advancing its innovative drug RAY1225, which has global intellectual property rights and dual agonistic activity for GLP-1 and GIP receptors, showing potential for bi-weekly administration in treating type 2 diabetes and obesity [1] Group 1: Product Development - RAY1225 is an innovative structural polypeptide drug with excellent pharmacokinetic properties [1] - The drug is currently in Phase III clinical trials for the treatment of type 2 diabetes and overweight/obesity patients [1] - RAY1225 has received approval from the U.S. Food and Drug Administration (FDA) to conduct Phase II clinical trials directly in the U.S. for indications related to overweight or obesity [1]

证券日报网讯众生药业（002317）11月6日在互动平台回答投资者提问时表示，公司产品价格将根据生 产成本、研发投入、期间费用等因素综合考虑确定，通过合理的价格调整扩大产品覆盖范围，更好地满 足临床需求。 ...

Core Viewpoint - The company emphasizes its commitment to exploring overseas market opportunities for its pharmaceutical products and plans to accelerate its internationalization efforts [2] Group 1 - The company is actively promoting the clinical application and registration of its products in foreign markets [2] - The company intends to expand its overseas market presence and explore more possibilities [2] - The company is focused on accelerating the pace of its internationalization [2]

Core Insights - The Chinese traditional medicine sector experienced a slight decline of 0.05% on November 6, with Te Yi Pharmaceutical leading the drop [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Market Performance - Notable gainers in the traditional medicine sector included: - Wanbangde (002082) with a closing price of 14.69, up 3.02% on a trading volume of 127,000 shares and a turnover of 184 million yuan - Jilin Aohai (000623) at 21.34, up 2.11% with 173,000 shares traded - Ma Yinglong (600993) at 29.19, up 1.71% with a turnover of 375 million yuan [1] - Conversely, Te Yi Pharmaceutical (002728) saw a significant decline of 5.74%, closing at 11.16 with a trading volume of 836,600 shares and a turnover of 94.26 million yuan [2] Capital Flow - The traditional medicine sector experienced a net outflow of 420 million yuan from institutional investors, while retail investors saw a net inflow of 220 million yuan [2] - Key stocks with notable capital flows included: - Zhongsheng Pharmaceutical (002317) with a net inflow of 53.81 million yuan from institutional investors [3] - Shijishi (300039) with a net inflow of 20.58 million yuan from institutional investors [3] - Other stocks like Ma Yinglong (600993) and Daren Tang (600329) also experienced mixed capital flows, indicating varied investor sentiment [3]

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical sector, specifically recommending the innovative drug and medical device industry chain [5][10]. Core Insights - The pharmaceutical sector shows a positive recovery trend in Q3 2025, with overall revenue growth of 0.6% year-on-year and a net profit increase of 0.3% year-on-year. This indicates a return to growth after previous declines [6][13]. - Specific segments such as medical devices and medical research outsourcing are experiencing significant growth, with revenue and net profit growth rates of 10.6% and 0.6% for medical devices, and 10.9% and 47.9% for medical research outsourcing, respectively [13][14]. - The report highlights a continued recommendation for specific A-share and H-share stocks, including 恒瑞医药 (Hengrui Medicine), 科伦药业 (Kelun Pharmaceutical), and others, indicating strong potential for investment [7][10]. Summary by Sections 1. Continued Recommendation for Innovative Drug and Medical Device Industry Chain - The report continues to recommend the innovative drug and medical device industry chain, maintaining "Overweight" ratings for several A-share stocks including 恒瑞医药, 科伦药业, and others, and H-share stocks like 翰森制药 and 三生制药 [7][10]. 2. Recovery Trend in Pharmaceutical Sector Q3 2025 - The pharmaceutical sector's overall revenue increased by 0.6% year-on-year in Q3 2025, with net profit rising by 0.3%. Medical devices and medical research outsourcing are leading this recovery with notable growth rates [13][14]. 3. Performance of Pharmaceutical Sector in October 2025 - In October 2025, the pharmaceutical sector underperformed compared to the broader market, with the SW pharmaceutical index declining by 1.8% while the Shanghai Composite Index rose by 1.9% [15][26]. 4. Performance of Hong Kong and US Pharmaceutical Sectors - The Hong Kong pharmaceutical sector also underperformed, with the Hang Seng Healthcare index down by 11.1%, while the US pharmaceutical sector showed strength with a 3.5% increase in the S&P healthcare index [26][27]. 5. Valuation and Premium Levels - As of October 31, 2025, the pharmaceutical sector's premium level relative to all A-shares is at a normal level, with a current relative premium rate of 76.7% [25][28].

Group 1: Northern Huachuang (002371) - The company achieved a revenue of 27.301 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 32.97%, and a net profit attributable to shareholders of 5.130 billion yuan, up 14.83% year-on-year [5][6] - In Q3 2025, the company reported a revenue of 11.160 billion yuan, a year-on-year increase of 38.31% and a quarter-on-quarter increase of 40.63%, with a net profit of 1.922 billion yuan, reflecting a year-on-year growth of 14.60% [5][6] - The company focuses on the semiconductor equipment sector, with over 80% of its revenue coming from this area, benefiting from the acceleration of domestic substitution in the semiconductor industry and the expansion of downstream wafer fabs [6][7] - Inventory increased significantly to 30.199 billion yuan, up 30.01% year-on-year, indicating proactive stocking to meet strong market demand and to build a localized, secure supply chain [7] - R&D expenses reached 3.285 billion yuan, a 48.40% increase year-on-year, with a R&D expense ratio of 12.03%, reflecting the company's commitment to innovation and product competitiveness [8] - The company is expected to benefit from the expansion of downstream wafer fab capacities and the domestic substitution trend, with projected revenues of 39.283 billion yuan, 49.665 billion yuan, and 61.156 billion yuan for 2025, 2026, and 2027 respectively [9] Group 2: Zhongsheng Pharmaceutical (002317) - The company reported a revenue of 1.889 billion yuan in the first three quarters of 2025, a slight decrease of 1.01% year-on-year, but a net profit of 251 million yuan, up 68.40% year-on-year [11][12] - In Q3 2025, the company achieved a revenue of 589 million yuan, a year-on-year increase of 8.35%, with a net profit of 63 million yuan, reflecting a year-on-year growth of 2.10% [11] - The R&D pipeline is progressing well, with key products like Anglavi tablets and RAY1225 showing promising clinical advancements, indicating strong potential for market expansion [12] - The company is expected to achieve revenues of 2.841 billion yuan, 3.336 billion yuan, and 3.917 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 307 million yuan, 366 million yuan, and 481 million yuan [13]