ASCO催化创新药投资热情，内需复苏、自主可控条线或值得重视

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" [2] Core Viewpoints - The report emphasizes that the ASCO conference has catalyzed enthusiasm for innovative drug investments, with a notable increase in the number of presentations by Chinese experts [3][12] - It is believed that innovative drugs will remain the main focus of pharmaceutical investments in the medium to long term, driven by China's transition from quantity to quality and innovation in drug development, alongside increasing policy support [3][12] - Short-term factors such as US-China tariff disputes and geopolitical tensions may affect overall risk appetite, suggesting a focus on companies that can commercialize large-scale innovative drugs and those in the CXO and life sciences upstream sectors [3][12] Summary by Sections Market Performance - The pharmaceutical and biotechnology sector's weekly return was 2.21%, outperforming the CSI 300 by 3.30%, ranking second among 31 primary sub-industry indices [10] - The chemical pharmaceuticals sub-sector led with a weekly return of 3.83% [10][27] - Over the past month, the sector's return was 6.42%, again ranking second among sub-industry indices [10][17] Industry Dynamics - The report highlights the importance of the ASCO conference held from May 30 to June 3, 2025, in Chicago, which has further stimulated investment interest in innovative drugs [11][12] - The report suggests focusing on the CXO and life sciences upstream sectors, as well as traditional pharmaceutical companies transitioning from generics to innovative drugs [13][14] Recommendations - Companies to watch in the innovative drug chain include Tigermed, WuXi AppTec, and others in the CRO/CDMO space [13] - For the domestic recovery line, companies like Aier Eye Hospital and Tongrentang are recommended [13] - In the self-sufficiency line, high-end medical devices and research instruments from companies like Mindray and Hualan Biological Engineering are highlighted [14] Company-Specific Insights - The report identifies specific companies with strong growth potential, such as Yaoshi Bang, which is expected to achieve a CAGR of approximately 145% in net profit from 2024 to 2027 [15] - Kangchen Pharmaceutical has maintained a net profit growth rate of over 14% for the past three years, with a projected PE of about 8 times in 2025 [15] - Guoyuyuan is expected to see operational improvements in 2025, marking a potential turning point for the company [15][16]