中药行业周报：超六成公司公布中报，OTC及品牌中药业绩表现较优

Investment Rating - The industry is rated as "Overweight" with a focus on three main investment themes [5]. Core Views - The report emphasizes the importance of innovation and heritage in the development of the traditional Chinese medicine (TCM) industry, highlighting the need for transformation and empowerment to drive high-quality growth [5]. - The report suggests that the TCM sector is experiencing a relative decline in performance compared to other pharmaceutical sub-sectors, but it has shown resilience with a smaller drop in value [2][10]. - The report indicates that OTC and branded TCM companies have performed better than innovative TCM drugs, continuing a positive trend from the first quarter [4]. Summary by Sections Market Performance - The TCM index decreased by 3.59% last week, while the overall pharmaceutical sector fell by 4.99%. Since the beginning of 2024, the TCM sector has dropped by 15.77%, which is less than the 25.02% decline in the broader pharmaceutical sector [2][10]. - Among the companies, Xiangxue Pharmaceutical, Lingrui Pharmaceutical, Yunnan Baiyao, and others showed strong performance, while companies like *ST Jiyuan and Hula娃 lagged behind [2]. Valuation Metrics - The TCM sector's PE ratio is 24.05X, down 0.85X from the previous week, with a PB ratio of 2.14X, down 0.07X. The PE is at the 19.7th percentile and the PB at the 2.8th percentile over the past decade [3]. Company Performance - As of August 28, 2024, 42 TCM companies have disclosed their semi-annual reports, with 30.95% showing revenue growth and 50% showing net profit growth. Companies with over 20% revenue growth account for 7.14%, while those with over 20% net profit growth account for 19.05% [4]. Investment Recommendations - The report identifies three main investment themes: 1. "Drug" innovation focusing on TCM innovative drugs, driven by policy and clinical demand [5]. 2. "Drug" rejuvenation focusing on branded TCM, leveraging competitive advantages and market innovations [8]. 3. State-owned enterprise reform, emphasizing quality improvement and efficiency in state-controlled enterprises [8].