Dongguan Securities·2025-04-11 07:23Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry, expecting the industry index to outperform the market index by over 10% in the next six months [2][29]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, declining by 5.20% from March 28 to April 10, 2025, which is approximately 0.18 percentage points lower than the index [14][29]. - Most sub-sectors within the industry recorded negative returns during the same period, with blood products and offline pharmacy sectors showing gains of 7.36% and 1.41%, respectively, while medical R&D outsourcing and in vitro diagnostics faced declines of 21.38% and 10.62% [15][29]. - Approximately 17% of stocks in the industry recorded positive returns, while around 83% experienced negative returns during the reporting period [16][19]. - The overall price-to-earnings (PE) ratio for the SW pharmaceutical and biotechnology industry is approximately 38.81 times, which is 3.38 times relative to the CSI 300, indicating a decline in industry valuation and positioning at a relatively low level compared to recent years [20][29]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, with a decline of 5.20% from March 28 to April 10, 2025 [14]. - Most sub-sectors recorded negative returns, with blood products and offline pharmacies leading in gains [15]. - About 17% of stocks in the industry had positive returns, while 83% had negative returns [16]. 2. Industry News - The national Chinese medicine procurement alliance began centralized procurement and information maintenance for selected drugs starting April 9, 2025, involving 20 product groups and 95 products, with 174 drugs selected [26]. 3. Important Announcements from Listed Companies - Zai Lab received approval for clinical trials of its drug ZG005 for use in combination with chemotherapy for digestive tumors [27]. - Opcon Vision received a medical device registration certificate for its orthokeratology contact lenses [28]. 4. Industry Weekly Perspective - The report suggests focusing on investment opportunities in medical devices and innovative drugs, particularly those with import substitution potential [29]. - Recommended stocks include Mindray Medical, Yuyuan Pharmaceutical, and others across various segments such as medical aesthetics and innovative drugs [30].