Haitong Securities International·2025-06-23 15:46Investment Rating - The report maintains an "Outperform" rating for several companies including Jiangsu Heng Rui Medicine, Sichuan Kelun Pharmaceutical, Huadong Medicine, and Changchun High-tech Industry [5][6][24]. Core Viewpoints - Continuous recommendation of innovative drugs and devices, with high growth potential in innovative pharmaceuticals [5][24]. - The National Medical Products Administration has introduced policies to support the innovation of high-end medical devices, which is expected to drive significant innovation in the sector [25]. - The A-share pharmaceutical sector experienced a decline in the third week of June 2025, with the SW pharmaceutical and biological sector falling by 4.4% [8][26]. Summary by Sections Continuous Recommendation of Innovative Drugs and Devices - The report emphasizes the high growth potential in innovative drugs and maintains an "Outperform" rating for key companies [5][6][24]. - Specific companies recommended include: - Jiangsu Heng Rui Medicine - Sichuan Kelun Pharmaceutical - Huadong Medicine - Changchun High-tech Industry - Biopharma/Biotech companies like Innovent Biologics, BeiGene, and Remegen [5][6][24]. A-share Pharmaceutical Sector Adjustment - In the third week of June 2025, the A-share pharmaceutical sector saw a decline, with the SHCOMP down 0.5% and the SW pharmaceutical sector down 4.4% [8][26]. - The report highlights that the relative premium rate of the pharmaceutical sector compared to all A-shares is at a normal level of 79.69% as of June 20, 2025 [18][26]. Hong Kong and U.S. Pharmaceutical Sector Adjustment - The report notes adjustments in the Hong Kong and U.S. pharmaceutical sectors during the same period, with the Hang Seng Healthcare index falling by 7.7% and the S&P 500 healthcare sector down by 2.7% [19][27].