Hengrui Pharma(SH:600276) Shenwan Hongyuan Securities·2025-07-20 13:36Investment Rating - The report rates the pharmaceutical industry as "Overweight," indicating an expectation for the industry to outperform the overall market [1][21][29]. Core Insights - The pharmaceutical sector saw a weekly increase of 4.0%, outperforming the Shanghai Composite Index, which rose by 0.7% [3][5]. - The overall valuation of the pharmaceutical sector stands at 31.7 times PE (2025E), ranking 6th among 31 primary industries [5][8]. - The 11th batch of national drug procurement has been initiated, with 55 products selected, establishing a sales threshold of 100 million yuan for participation [10]. - Recent approvals include the launch of recombinant human albumin injection by He Yuan Biotech and a new flu drug by Jichuan Pharmaceutical and Zhengxiang [10][11]. - Noteworthy IPO approval for Beixin Life, marking a significant milestone in the FFR measurement system in China [11]. - Financial misconduct has led to a penalty for Nuotai Bio, resulting in a stock warning and a halt in trading [11]. Market Performance - The pharmaceutical sector's performance is highlighted with a 4.0% increase, ranking second among 31 sub-industries [3][5]. - Detailed performance across sub-sectors includes raw materials (+7.0%), chemical preparations (+6.8%), and others, with offline pharmacies showing a decline of -2.7% [5][6]. Key Events - The report emphasizes significant events such as the initiation of the 11th national drug procurement and the approval of new drugs, which are expected to impact market dynamics positively [10][11]. - The report also notes the financial penalties faced by Nuotai Bio, which may affect investor sentiment and market stability [11]. Investment Analysis - The report suggests focusing on innovative drug companies and related CXO companies that are expected to benefit from upcoming product launches and business development opportunities [10]. - Companies highlighted for potential growth include Heng Rui Pharmaceutical, Bei Da Pharmaceutical, and WuXi AppTec among others [10].