中药行业周报：2024年上半年医药工业经济运行情况发布，中药饮片表现最好

Investment Rating - The industry rating is maintained at "Overweight" [5] Core Viewpoints - The Chinese traditional medicine sector has shown resilience, with the Chinese herbal medicine segment being the only sub-sector to achieve growth in both revenue and profit in the first half of 2024 [4] - The overall pharmaceutical industry is under pressure due to drug price governance and healthcare payment reforms, but the traditional medicine sector is expected to benefit from gradual policy implementation and macroeconomic support [5] - The sector's valuation shows a premium compared to the broader market, with a PE (ttm) of 28.71X and a PB (lf) of 2.54X, indicating a significant valuation premium of 116.51% over the CSI 300 index [3] Summary by Sections Market Performance - The traditional medicine index rose by 8.92% last week, supported by favorable macro policies [2] - The overall pharmaceutical sector index increased by 11.15%, indicating a strong recovery trend [2] Valuation - The traditional medicine sector's PE (ttm) increased by 2.35X week-on-week, with a maximum of 29.54X and a minimum of 21.67X over the past year [3] - The PB (lf) also saw a week-on-week increase of 0.21X, with a maximum of 2.69X and a minimum of 1.99X in the past year [3] Economic Performance - In the first half of 2024, the pharmaceutical industry saw a 1.2% year-on-year increase in value added, while revenue for large-scale enterprises decreased by 1.4% [4] - The traditional medicine segment was the only one to report growth in both revenue and profit, contrasting with the negative performance of the Chinese patent medicine sector [4] Investment Recommendations - The report suggests focusing on three main lines for investment: innovation in traditional medicine, brand revitalization, and state-owned enterprise reform [5][8] - Emphasis is placed on companies with strong R&D capabilities and those that can leverage new market opportunities [8]