China Post Securities·2025-06-03 12:23Industry Investment Rating - The industry investment rating is maintained as "Outperform" [1] Core Insights - The report highlights a significant increase in the approval of domestic innovative drugs, marking a harvest period for the industry. A total of 53 new drugs were approved in China from the beginning of 2025 to the end of May, including 30 domestic and 23 imported innovative drugs, covering various therapeutic areas such as oncology and rare diseases [4][12] - The pharmaceutical sector saw an increase of 2.21% this week, outperforming the CSI 300 index by 3.3 percentage points, ranking second among 31 sub-industries [16][19] - The report emphasizes the potential for valuation reshaping among domestic innovative pharmaceutical companies, which could become a key investment theme throughout the year, especially with the upcoming national medical insurance negotiations [4][12] Summary by Sections Industry Overview - The closing index for the pharmaceutical sector is at 7699.75, with a weekly high of 8490.25 and a low of 6070.89 [1] Recent Performance - The biopharmaceutical sector has shown a strong performance, with the other bioproducts sector leading with a 4.65% increase, followed by chemical preparations at 4.27% and medical research outsourcing at 4% [5][18] Recommended and Benefiting Stocks - Recommended stocks include: Yingke Medical, Maipu Medical, Yihe Jiaye, Weidian Biology, Gongdong Medical, and others [6][25] - Benefiting stocks include: Shanhaishan, Yirui Technology, and others [6][25] Sub-sector Insights - The medical device sector is expected to see significant growth due to policy changes and procurement processes, with a current P/E ratio of 37.55, indicating potential for valuation increase [21] - The IVD sector is also highlighted for its growth potential, particularly in AI-assisted diagnostics, with a current P/E ratio of 32.30 [26][27] - The blood products sector is projected to maintain stable demand, with a 10.9% year-on-year increase in domestic plasma collection [28] Market Trends - The report notes a trend of increasing approvals for innovative drugs, with a focus on the upcoming national medical insurance negotiations that could accelerate market penetration for newly approved drugs [4][12]