医药生物：政策延续，医药复苏与成长可期；第十批国采启动

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology sector [1]. Core Insights - Continuous favorable policies are expected to support recovery and growth in the pharmaceutical sector. The report highlights the recent launch of the tenth batch of national drug procurement, which is anticipated to bring new opportunities for integrated raw material and formulation companies [5][6]. - The pharmaceutical sector is currently at a historical low, with a potential for profit recovery and valuation repair. The report emphasizes the importance of technology innovation as a core element of new productive forces in the market [5]. Summary by Sections Industry Overview - The pharmaceutical sector's total market capitalization is approximately 61,491.93 billion, with a circulating market value of about 54,921.69 billion [1]. - The report notes that the pharmaceutical sector's valuation is currently at 22.4 times PE, which is a premium of 23.3% compared to the overall A-share market (excluding financials) [13]. Market Performance - The Shanghai Composite Index rose by 0.98%, while the pharmaceutical sector increased by 1.04%, ranking 18th among 31 primary sub-industries. Key sub-sectors such as chemical pharmaceuticals and medical services saw increases of 2.98% and 1.18%, respectively [5][11]. - The report indicates that the pharmaceutical sector has underperformed the Shanghai Composite Index by 26.3% year-to-date [11]. Key Company Performance - The report highlights several companies with strong performance potential, including WuXi AppTec, Eye Hospital, and Innovent Biologics, among others [1][5]. - The tenth batch of national drug procurement is expected to stabilize price reductions and limit the impact on company performance, particularly for integrated raw material and formulation companies [6][7]. Policy Developments - Recent policy announcements include a potential reduction in the reserve requirement ratio and the initiation of stock repurchase programs, which are expected to enhance market liquidity and risk appetite [5][11]. - The report emphasizes the significance of the tenth batch of national drug procurement, which includes a record number of products and is expected to create new growth opportunities for integrated players in the generic drug market [6][7].