Tai Ping Yang·2025-05-14 00:25Investment Rating - The report does not provide specific investment ratings for the sub-industries within the pharmaceutical sector [3]. Core Insights - The life sciences upstream sector has experienced a significant recovery since September 24, 2024, with a 60% increase in the index, outperforming the pharmaceutical and biotechnology sectors by 40 percentage points [4][23]. - The sector is currently in a rebound phase after undergoing a clearing phase from mid-2022 to late 2024, characterized by supply-demand imbalances and subsequent recovery [20][23]. Supply Side Summary - The supply side is witnessing a turning point, with local products continuously upgrading to mid-to-high-end levels, aiming for global leadership [5]. - The overall capital expenditure depreciation has dropped to its lowest level in nearly six years, indicating a recovery in the supply chain [29]. - Companies are experiencing a gradual recovery in gross profit margins, with some, like Aladdin and Nanmo Biology, showing signs of improvement after hitting lows [34]. Demand Side Summary - Research institutions and large pharmaceutical companies are steadily increasing their R&D expenditures, with improved financing potentially stimulating high growth in smaller pharmaceutical companies [6]. - The recognition of domestic brands is increasing, accelerating the process of replacing foreign products, particularly in protein and culture media categories [6]. Related Companies - Aopumai: A leading domestic brand in culture media, with a comprehensive layout in "culture media + CRO + CDMO" [8]. - Aladdin: A domestic high-end research reagent brand, expected to contribute additional growth from overseas [8]. - Baipusais: A leading domestic player in recombinant proteins, with a turning point in performance [8]. - Nuowei Zhan: A leader in molecular biological reagents, benefiting from the domestic replacement trend [8]. - Jian Kai Technology: A leading domestic PEG company, with new product releases expected to open up growth space [8]. - BGI Genomics: Focused on domestic markets while expanding globally, optimistic about accelerating domestic replacements [8].