中药行业周报：多地将中药饮片及院内制剂纳入医保支付范围，支付端形成利好

Investment Rating - The industry rating is maintained at "Overweight" [6] Core Insights - The Chinese medicine sector experienced a decline of 6.6% last week, with the overall pharmaceutical sector down by 6% [2] - Recent policies have included traditional Chinese medicine (TCM) decoction pieces and hospital preparations into the medical insurance payment scope, creating a favorable environment for the sector [4][7] Market Performance - The Chinese medicine index closed at 6526.12 points, down 6.6% last week, while the overall pharmaceutical sector reported a decline of 6% [2][11] - Notable performers included ST Muyu, Fangsheng Pharmaceutical, and Qizheng Tibetan Medicine, while companies like Kew Flower Pharmaceutical and Taiji Group lagged behind [2] Valuation - The price-to-earnings (PE) ratio for the Chinese medicine sector was 26.81X, down 1.9X week-on-week, with a price-to-book (PB) ratio of 2.37X, down 0.17X [3] - The current PE is at the 27.41% percentile over the past decade, while the PB is at the 7.04% percentile [3] Policy Developments - Multiple regions have announced policies to include TCM decoction pieces and hospital preparations in medical insurance, with specific examples from Anhui and Gansu provinces [4][7] - The ongoing expansion of centralized procurement and medical insurance support for TCM is expected to positively impact the industry [4][8] Investment Recommendations - Focus on three main lines for investment: 1. "Drug" innovation, emphasizing TCM innovative drugs and companies with strong R&D capabilities [8] 2. "Drug" renewal, highlighting brand TCM with competitive advantages [8] 3. State-owned enterprise reform, targeting state-controlled companies that can achieve quality and efficiency improvements [9]