中药行业周报：中药业绩继续显现承压，OTC及品牌中药表现较好

Investment Rating - The industry rating is maintained at "Overweight" [5] Core Views - The Chinese medicine industry continues to face pressure on performance, with OTC and branded Chinese medicine showing better results [4] - The industry is focusing on innovation and quality improvement, with three main investment themes: "Drug" innovation, "Drug" renewal, and state-owned enterprise reform [5][7] Summary by Sections Industry Performance - The Chinese medicine sector saw a decline of 2.34% last week, with the overall pharmaceutical sector also in a downward trend [2] - Year-to-date, the pharmaceutical sector has dropped by 25.07%, while the Chinese medicine sector has decreased by 17.07% [2][9] Valuation Metrics - The current PE (ttm) for the Chinese medicine sector is 24.12X, down 0.13X from the previous period, with a one-year range of 21.67X to 29.54X [3] - The PB (lf) stands at 2.13X, a decrease of 0.05X, with a one-year range of 2.10X to 2.71X [3] Company Performance - In the first half of 2024, 29.69% of companies reported revenue growth, while 43.75% reported net profit growth [4] - Companies with significant revenue growth include Guizhou Sanli, Jiaying Pharmaceutical, and Enwei Pharmaceutical, while underperformers include Zhongheng Group and ST Muyuan [2][4] Investment Recommendations - Focus on three main themes: 1. "Drug" innovation, emphasizing companies with strong R&D capabilities and unique products [5][7] 2. "Drug" renewal, targeting branded Chinese medicine with competitive advantages [5][7] 3. State-owned enterprise reform, which is expected to enhance efficiency in state-controlled companies [5][7]