Pharscin Pharma(SZ:002907) Sou Hu Cai Jing·2025-05-30 06:02Core Viewpoint - The Chinese medicine sector is experiencing a collective pullback in the A-share market, while the Chinese Medicine ETF (560080) has shown resilience, rising nearly 1% and reaching a new high since January 8 of this year [1] Company News - Huawen Pharmaceutical announced the approval from the Singapore Health Sciences Authority for the registration of its traditional Chinese medicine, Tongxie Ning Granules, for sale in Singapore. This marks the fourth overseas registration for the company, following previous approvals for other products [3] - Tongxie Ning Granules is the first natural plant medicine globally for treating IBS-D, demonstrating significant efficacy and high safety, with the ability to prevent recurrence [3] Industry Insights - Huafu Securities indicates that the pressure from high base numbers in the Chinese medicine sector has cleared in the first quarter, with expectations for gradual improvement in performance from Q2 to Q3 of 2025 due to low valuation and low allocation [4] - The firm identifies three major catalysts for the Chinese medicine industry: 1. Accelerated approval and market entry of innovative Chinese medicines, with 9 new drugs approved in 2023 and an expected increase to 16 in 2024 [6] 2. Anticipated adjustments to the essential drug catalog, which will favor innovative Chinese medicines, with a significant increase in the number of traditional Chinese medicine varieties included [6] 3. A decline in the prices of Chinese medicinal materials and expectations for product price increases, which could enhance performance for companies using these materials [7] Key Indicators - The core indicators for the Chinese medicine sector include flu data and the price index of medicinal materials. The flu cases have returned to normal levels, and the pressure on revenue growth for most companies is expected to ease from Q2 2025 [8] - The price index of medicinal materials has been declining since mid-July 2024, with common materials like Lianqiao and Dangshen also showing price decreases, which may alleviate gross margin pressures for companies in 2025 [8]