INDUSTRIAL SECURITIES·2025-03-13 06:12Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Views - The pharmaceutical sector has shown signs of recovery, with a focus on innovative drugs, the innovative drug industry chain, and AI medical applications as key investment directions [2][3][4] - The pharmaceutical sector outperformed the CSI 300 index, rising by 4.96% from February 5 to February 28, 2025, compared to a 1.91% increase in the CSI 300 index [3][5] - Continuous policy support for innovative drugs has improved the domestic research and payment environment, benefiting differentiated innovative products [8][9] Summary by Sections 1. February 2025 Market Review - The pharmaceutical sector's performance improved compared to 2024, with the Shenwan Pharmaceutical Index rising by 1.1% since the beginning of 2025, while the CSI 300 index fell by 1.1% [6][8] - The sector's recovery is attributed to positive catalysts in AI medical applications and innovative drugs [6] 2. Investment Strategy for March 2025 - The report suggests focusing on segments with good growth potential and industrial logic, emphasizing innovation and internationalization as core themes [12] - AI medical applications are highlighted as an important direction for the pharmaceutical sector in 2025 [12] 3. Recommended Stocks - BeiGene: Leading in innovative drugs with strong sales growth and potential for global market expansion [22] - Hengrui Medicine: Expected to see rapid growth driven by new product cycles and international expansion [23] - CanSino Biologics: Significant potential in the global market with promising clinical results [23] - WuXi AppTec: A leading integrated CXO company with strong growth in orders and revenue recovery [24] - Aibo Medical: High growth potential in the ophthalmic device sector, benefiting from aging demand [25] - Tongrentang: A well-established brand in traditional Chinese medicine with potential for operational improvements [25] 4. Economic Data and Industry Trends - The pharmaceutical manufacturing industry saw a slight decline in revenue and profit in 2024, but expectations for recovery in 2025 are positive [37] - The overall valuation of the pharmaceutical sector is at 25.78 times, with a premium over the CSI 300 index of 116.32% [30]