中药行业周报（2024.10.28-2024.11.03）

Investment Rating - The report maintains a rating of "Outperform the Market" for the traditional Chinese medicine industry [1][22]. Core Insights - The traditional Chinese medicine industry has shown resilience, outperforming the Shanghai Composite Index by 0.05 percentage points during the week of October 28 to November 1, 2024, despite a decline in major indices [4][1]. - The current Price-to-Earnings (PE) ratio for the traditional Chinese medicine industry is at 28.99X, which is lower than the median PE of 30.13X for the year 2023, indicating that the industry is still valued at a relatively low level [11][1]. - The PE ratio of the traditional Chinese medicine industry compared to the Shanghai and Shenzhen 300 Index is currently at 2.32, below the median of 2.57, further supporting the notion of low valuation [11][1]. Summary by Sections Market Review - The traditional Chinese medicine sector experienced a decline of 0.79% during the week, while the Shanghai Composite Index fell by 0.84% and the CSI 300 Index dropped by 1.68% [4][5]. - The traditional Chinese medicine price index decreased by 0.69% week-on-week, with the current index standing at 2059.81 [11][10]. Industry Dynamics - Recent regulations from Jiangsu Province aim to enhance the management of traditional Chinese medicine decoction services in medical institutions, focusing on service capability, prescription management, and quality control [14][15]. - Shanghai has launched a three-year action plan (2025-2027) to accelerate the innovation and development of traditional Chinese medicine, which includes establishing high-quality service systems and promoting clinical guidelines [16][17]. Investment Opportunities - The report highlights potential investment opportunities in traditional Chinese medicine companies that possess strong brand recognition, deep sales channels, and innovative marketing strategies [1][14]. - Companies that are well-positioned in the dietary, high-end personal care, or innovative pharmaceutical sectors are also seen as having multiple growth drivers [1][14].