ZHESHANG SECURITIES·2025-03-30 07:02Investment Rating - The industry rating is maintained as "Positive" [4] Core Insights - The report emphasizes the importance of "reconstructors" in the pharmaceutical innovation sector, suggesting that companies with the potential to reshape the industry landscape will be key investment opportunities [1][18] - The report identifies specific sub-sectors within the pharmaceutical industry that are likely to lead in mergers, integrations, and breakthroughs, including innovative drugs and devices, cash-rich traditional pharmaceutical companies, and globally competitive enterprises [2] - The report highlights the recent performance of various pharmaceutical segments, noting significant growth in chemical preparations, chemical raw materials, and biopharmaceuticals due to earnings reports and project announcements [1][6] Summary by Sections Investment Recommendations - Recommended companies include: Kelun Pharmaceutical, Zai Lab, Kangfang Biotech, WuXi AppTec, and Mindray Medical among others [2][9] Policy Tracking - The report discusses recent healthcare policy developments, including the implementation of an instant settlement system in Henan Province, which marks a significant breakthrough in healthcare fund management [3] Market Performance - The pharmaceutical index increased by 1.04% during the week of March 24-28, 2025, outperforming the CSI 300 index by 1.03 percentage points [6] - The overall valuation of the pharmaceutical sector is reported at 27.04 times PE, reflecting a slight increase [6] Sub-sector Analysis - Notable performance in sub-sectors includes a 9.8% increase in innovative drugs and a 4.8% increase in chemical preparations, while traditional medicine and medical services saw declines [7][8] Strategic Outlook - The report anticipates a new cycle of operational efficiency improvements across various sub-sectors in 2025, driven by ongoing healthcare reforms and market dynamics [8]