Shenwan Hongyuan Securities·2025-05-18 09:41Investment Rating - The report rates the pharmaceutical industry as "Overweight" indicating a positive outlook for the sector compared to the overall market performance [4][3]. Core Insights - The pharmaceutical sector saw a weekly increase of 1.3%, outperforming the Shanghai Composite Index which rose by 0.8% [5][4]. - The overall valuation of the pharmaceutical sector is at 27.7 times PE (2025E), ranking 6th among 31 primary industries [7][12]. - Key events include the official launch of Hong Kong IPO by Heng Rui Pharmaceutical, aiming to issue approximately 225 million H shares with a maximum fundraising of 13.08 billion HKD [13][4]. - A collaboration between Jianyou and Shuangcheng for the injection of paclitaxel (albumin-bound) received FDA approval, highlighting significant market opportunities [14][4]. Market Performance - The pharmaceutical bio index ranked 11th among 31 primary sub-industries, with various sub-sectors showing mixed performance: raw materials (+3.8%), chemical preparations (+1.0%), and traditional Chinese medicine (+1.7%) [4][5]. - The report notes that the pharmaceutical sector's performance is driven by innovations and regulatory approvals, which are crucial for future growth [4][14]. Key Company Developments - Heng Rui Pharmaceutical's IPO is set to take place from May 15 to May 20, with the final price expected to be determined by May 22 [13][4]. - The collaboration between Jianyou and Shuangcheng is expected to generate significant revenue through profit-sharing agreements following FDA approval [14][4]. Valuation Metrics - The report provides a detailed valuation table for key companies in the pharmaceutical sector, indicating projected EPS and PE ratios for 2025 to 2027 [17][4].