中药行业周报：广东牵头15省拟开展集采，中成药集采持续推进

Investment Rating - The industry rating is maintained at "Overweight" [13] Core Viewpoints - The Chinese medicine industry is currently facing short-term pressure due to high base numbers, weak consumption, and centralized procurement policies. However, with the gradual implementation of moderate centralized procurement, macro policies stimulating consumption, and adjustments to medical insurance and essential drug catalogs, the industry is expected to return to a stable growth trend [12][16]. Market Performance - The Chinese medicine sector experienced a decline of 3.99% last week, with the overall pharmaceutical sector also seeing a drop of 3.92%. The performance of various sub-sectors includes: - Chinese medicine index at 6874.19 points - Chemical pharmaceuticals at 10509.56 points, down 4.08% - Biological products at 6392.66 points, down 3.39% [8][21] Valuation Metrics - The current PE (ttm) for the Chinese medicine sector is 28.65X, down 1.19X week-on-week, with a range over the past year between 21.67X and 30.13X. The PB (lf) is 2.47X, down 0.1X week-on-week, with a range between 1.99X and 2.69X over the past year. The sector's PE is at the 32.53% percentile and PB at the 8.89% percentile compared to the last ten years. The valuation premium of the Chinese medicine sector relative to the CSI 300 is 127.16% [9][10]. Centralized Procurement Developments - Guangdong province is leading a proposal for centralized procurement involving 15 provinces, focusing on traditional Chinese medicine products. The procurement cycle is set to last until December 31, 2026, with a significant emphasis on ensuring that selected products account for at least 70% of total usage in public medical institutions [10][11]. Investment Recommendations - The report suggests focusing on three main lines for investment: 1. "Drug" innovation, emphasizing companies with strong R&D capabilities and unique products, especially those that can integrate traditional Chinese medicine with clinical needs [16]. 2. "Drug" renewal, highlighting brand Chinese medicine with competitive advantages in formulation, raw materials, and branding [17]. 3. State-owned enterprise reform, targeting state-controlled companies that are expected to benefit from efficiency improvements due to ongoing reforms [18].