Great Wall Securities·2025-03-04 07:20Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical sector [3] Core Views - The pharmaceutical sector experienced a decline of 2.72% this week, underperforming the CSI 300 index by 0.49 percentage points, ranking 23rd among 31 sectors [6][4] - The report suggests that favorable policies for the pharmaceutical sector are expected to lead to a gradual recovery in industry sentiment, particularly in the formulation sector [4] - The report highlights the potential for innovative therapies to meet significant incremental and replacement demand, with a focus on high-quality domestic biotech companies [4] Summary by Sections 1. Pharmaceutical Sector Performance - The pharmaceutical sector's decline of 2.72% includes sub-sectors such as chemical pharmaceuticals down 0.39%, traditional Chinese medicine II down 0.76%, biological products down 2.36%, medical devices down 3.44%, pharmaceutical commerce down 3.57%, and medical services down 7.94% [6][4] 2. Key Stock Recommendations - Recommended stocks include: 1. Aosaikang (002755.SZ) with a "Buy" rating, expected EPS of 0.13 in 2024 and 0.20 in 2025 [1] 2. Cloudtop New Medicine (01952.HK) with a "Buy" rating, expected EPS of -2.93 in 2024 and -0.12 in 2025 [1] 3. Renfu Pharmaceutical (600079.SH) with an "Overweight" rating, expected EPS of 1.33 in 2024 and 1.59 in 2025 [1] 4. Dize Pharmaceutical (688315.SH) with a "Buy" rating, expected EPS of 0.47 in 2024 and 0.53 in 2025 [1] 3. Industry News Highlights - Cloudtop New Medicine presented complete maintenance phase data for Etrasimod in treating moderate to severe ulcerative colitis at the ECCO 2025 conference [26] - BeiGene initiated the first Phase III clinical trial for its BTK PROTAC drug BGB-16673, marking a significant milestone in the development of PROTAC drugs [29] - Eli Lilly reinforced its position in the inflammatory bowel disease (IBD) sector by acquiring Organovo's FXR project, indicating a strategic focus on IBD treatments [32]