China Post Securities·2025-06-09 07:53Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2]. Core Viewpoints - The report emphasizes that policy support for listed companies through mergers and acquisitions is crucial for high-quality development, leading to ongoing industry consolidation [5][14]. - The pharmaceutical and biotechnology sector has shown a weekly increase of 1.13%, outperforming the CSI 300 index by 0.25 percentage points, ranking 17th among 31 sub-industries [7][18]. Summary by Sections 1. Weekly Viewpoint - The report highlights that recent policies have improved regulatory inclusiveness and relaxed competition restrictions, facilitating mergers and acquisitions [14]. - Companies like Maipu Medical and Pilin Bio have announced plans for mergers and acquisitions, which are expected to enhance their technological capabilities and market positions [6][15]. 2. Subsector Performance - The pharmaceutical sector's sub-indices all recorded gains, with the raw materials and blood products sectors leading with a 2.89% increase [7][22]. - The report suggests that the medical device sector has significant room for valuation growth, with a current P/E ratio of 37.55, below its historical average [26]. 3. Recommended and Beneficiary Stocks - Recommended stocks include Yingke Medical, Maipu Medical, and Yihe Jiaye, among others [8]. - Beneficiary stocks identified are Shanhaishan, Yirui Technology, and Lianying Medical [27]. 4. Detailed Subsector Analysis - Medical Devices: The sector is expected to benefit from policies promoting equipment upgrades and procurement, with a focus on AI applications in imaging and surgery [26]. - Medical Consumables: The sector is projected to see steady growth as high-value consumables approach the end of their procurement cycle [29]. - IVD Sector: The report notes a 2.00% increase in the IVD sector, with a focus on AI-assisted diagnostics [30]. - Blood Products: The blood products sector is experiencing a 2.89% increase, with ongoing consolidation and product diversification [31]. - Retail Pharmacy: The offline pharmacy sector is expected to benefit from improved operational efficiencies through AI integration [34]. - Healthcare Services: The hospital sector has seen a 1.07% increase, with growth in specific medical fields like ophthalmology and reproductive health [36]. - Traditional Chinese Medicine: The sector is expected to recover as the impact of previous procurement policies diminishes [38]. - CXO Sector: The report indicates a positive outlook for the CXO sector, driven by increased demand for outsourcing in drug development [40].