中药行业周报（2024.07.29-2024.08.04）

Investment Rating - The report maintains a "stronger than the market" rating for the traditional Chinese medicine industry, indicating an expectation for the industry to outperform the market in the next six months [21]. Core Insights - The traditional Chinese medicine industry outperformed the market by 1.12 percentage points during the week of July 29 to August 2, 2024, with a 1.62% increase compared to a 0.50% increase in the Shanghai Composite Index and a 0.73% decrease in the CSI 300 [4][6]. - The current price-to-earnings (PE) ratio for the traditional Chinese medicine industry is 25.1X, down from a median of 30.60X since the beginning of 2023, indicating that the industry is still valued at a relatively low level [10]. - The PE ratio of the traditional Chinese medicine industry compared to the CSI 300 is currently at 2.17, which is below the median of 2.61, suggesting that the industry remains undervalued [10]. - The traditional Chinese medicine material price index decreased by 0.93% week-on-week, indicating a slight decline in material costs [13]. Summary by Sections Market Review - The traditional Chinese medicine industry outperformed the broader market by 1.12 percentage points during the specified week, with significant gains in the sector [4]. - The industry has shown a low valuation level, with the current PE ratio at 25.1X compared to a historical median of 30.60X [10]. Industry Dynamics - The report highlights the release of the "Guiding Opinions on Improving the Long-term Mechanism for Basic Medical Insurance Participation" by the State Council, which aims to enhance the basic medical insurance system [15]. - The National Administration of Traditional Chinese Medicine introduced the "Standardization Action Plan for Traditional Chinese Medicine (2024-2026)" to improve standardization in the industry [15][16].