Zhi Tong Cai Jing·2025-10-27 09:21Core Viewpoint - The biotechnology and innovative pharmaceutical industry in China has experienced volatility due to previous overvaluation, uncertainty in national medical insurance drug pricing, delays in business expansion expectations, and year-end fund sell-offs [1] Group 1: Market Conditions - Market liquidity remains robust, making valuations of quality companies increasingly attractive [1] - Ongoing business expansion activities are noted, with the potential for large transactions still possible [1] - Further downside price risk appears limited, indicating a healthy consolidation phase [1] Group 2: Company-Specific Insights - For CSPC Pharmaceutical Group (01093), delays in business expansion execution have weakened investor confidence, creating more attractive buying opportunities [1] - Assuming business expansion resumes as expected, the price-to-earnings (P/E) valuation remains very attractive for CSPC [1] - The third-quarter performance may serve as a recent catalyst for CSPC [1] Group 3: Future Outlook - The likelihood of significant progress on large business expansion transactions is high for next year [1] - For China National Pharmaceutical Group (01099), improvements in accounts receivable days and the initiation of the "14th Five-Year Plan" will support the recovery of profit momentum [1] - Current stock price levels offer an appealing dividend yield and low P/E ratio, with significant upside potential as operational efficiency continues to improve [1]