Haitong Securities International·2025-06-18 01:24Investment Rating - The report rates the pharmaceutical industry as "Outperform" [1][2] - The sub-industries of pharmaceutical manufacturing and pharmaceutical services are also rated as "Outperform" [2] Core Insights - Continuous recommendation of innovative drugs and devices, with a positive outlook on companies such as Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical, Sichuan Kelun Pharmaceutical, Huadong Medicine, 3SBio, CSPC Pharmaceutical Group, and Changchun High-tech Industry [4][23] - The report emphasizes that centralized procurement optimization is expected to benefit innovative drugs and devices, as highlighted in a State Council meeting on June 13, 2025 [24] - The A-Shares pharmaceutical sector outperformed the market in the second week of June 2025, with a 1.4% increase compared to a 0.2% decrease in the Shanghai Composite Index [6][25] - The Hong Kong and U.S. pharmaceutical sectors also outperformed the market during the same period, with significant gains in the Hang Seng Healthcare and Biological Technology indices [20][26] Summary by Sections Continuous Recommendation of Innovative Drugs and Devices - The report maintains a positive outlook on innovative drugs, highlighting the potential for value re-evaluation in companies like Heng Rui Medicine, Hansoh Pharmaceutical, and others [4][5] - Biopharma/Biotech companies such as Kelun Biotech, Innovent Biologics, and BeiGene are also recommended for their growth potential [4][5] Performance of A-Shares Pharmaceutical Sector - In the second week of June 2025, the A-Shares pharmaceutical sector rose by 1.4%, ranking 4th among Shenwan primary industries [6][25] - Notable individual stock performances included Tibet Aim Pharm. Inc. (+38.5%) and Beijing Science Sun Pharmaceutical (+36.4%) [25][14] Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hang Seng Healthcare index increased by 8.8%, and the Biological Technology index rose by 10.5% during the same period [20][26] - In the U.S., the S&P 500 Healthcare Select Sector rose by 1.2%, with top gainers including Regeneron (+7%) and Eli Lilly (+6%) [20][26]