Haitong Securities International·2025-07-01 12:28Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical sector, specifically recommending innovative drugs and devices [1][5][26]. Core Insights - The report emphasizes the sustained high prosperity in innovative drugs, recommending companies such as Jiangsu Heng Rui Medicine, 3SBio, Sichuan Kelun Pharmaceutical, and Huadong Medicine with an "Outperform" rating. It also highlights Biopharma/Biotech companies with promising pipelines and increasing performance, maintaining an "Outperform" rating for companies like PATEO, Innovent Biologics, BeiGene, CSPC Innovation Pharmaceutical, and Acrobiosystems [5][26]. - The report notes that the A-share pharmaceutical sector slightly underperformed the market in the fourth week of June 2025, with the Shanghai Composite Index rising by 1.9% and the SW Pharmaceutical and Biological Technology Index rising by 1.6% [27][28]. - The report identifies sub-sectors such as Medical service (+2.9%), Medical equipment (+2.1%), and pharmaceutical commerce (+2.1%) as performing relatively well during the same period [13][27]. Summary by Sections Continuous Recommendation of Innovative Drugs and Devices - The report continues to recommend innovative drugs and devices, highlighting the high prosperity in this area and maintaining "Outperform" ratings for several key companies [5][26]. Performance of A-Shares Pharmaceutical Sector - In the fourth week of June 2025, the A-share pharmaceutical sector slightly underperformed the broader market, with a relative premium rate of 78.33% compared to all A-shares [15][27]. Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hong Kong pharmaceutical sector also slightly underperformed the market, with the Hang Seng Healthcare Index rising by 2.9% and the Biological Technology Index by 2.2% [23][28]. - In the U.S., the S&P 500 Healthcare Select Sector rose by 1.5%, underperforming the S&P 500, which rose by 3.4% during the same period [29].