医药生物行业定期报告：关注内需，看好中药OTC+消费医疗

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [2]. Core Viewpoints - The report emphasizes the potential recovery of the consumer healthcare sector in 2025, particularly focusing on traditional Chinese medicine (TCM) OTC products and consumer medical services, driven by domestic demand stimulation [3][12]. - The report highlights that the pharmaceutical sector is currently undervalued and underweighted, suggesting a favorable environment for investment as policies improve and consumer spending is expected to rise [3][12]. Summary by Sections 1. Mid-term Investment Strategy and Recommended Portfolio Performance - The report suggests gradually increasing allocations in the pharmaceutical sector, anticipating excess returns post semi-annual reports [10]. - Key policies for 2024 include the comprehensive promotion of DRG/DIP, expected adjustments to the essential drug list, and enhanced efficiency assessments for state-owned enterprises [10][11]. 2. Consumer Pharmaceutical Focus: Domestic Demand and Recovery - The consumer healthcare sector is expected to recover in 2025, with a focus on TCM OTC products and consumer medical services [3][12]. - The report identifies key companies in TCM OTC, including state-owned enterprises like Tai Chi Group and private brands like Lianrui Pharmaceutical [3][12]. - The medical services sector is highlighted for its strong demand elasticity, particularly in ophthalmology and dental services [3][12]. 3. Weekly Market Review and Hotspot Tracking (Nov 4 - Nov 8, 2024) - The CITIC Pharmaceutical Index rose by 6.4% during the week, outperforming the CSI 300 Index by 0.9 percentage points [2][48]. - Year-to-date, the CITIC Pharmaceutical Index has declined by 4.5%, underperforming the CSI 300 Index by 24.1 percentage points [2][48]. 4. TCM OTC Market Insights - The TCM OTC market is projected to benefit from domestic demand stimulation, with a significant market size exceeding 100 billion [19][21]. - The report notes that TCM companies have faced valuation compression over the past three years, but are now positioned for recovery as policies improve [3][12]. 5. Medical Services Sector - The medical services sector has seen a significant valuation decline, with a PE ratio at 47X, indicating potential for recovery as economic conditions improve [27][35]. - Companies like Aier Eye Hospital and Tongce Medical are highlighted as key players benefiting from economic recovery [27][35]. 6. Offline Pharmacy Sector - The offline pharmacy sector is currently at a 10-year low in valuation, with expectations for recovery as policies regarding pricing become more favorable [36][39]. - Key companies in this sector include Yifeng Pharmacy and Lao Baixing, which are expected to benefit from a rebound in retail demand [39]. 7. Home Medical Devices - The home medical device market is positioned for growth due to an aging population and increasing consumer spending power [40][41]. - Companies like Yiyue Medical and Kefu Medical are recommended for their strong market positions and product offerings [40][45].