Dongguan Securities·2025-09-05 07:55Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [4][27]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, with a decline of 1.27% from August 22, 2025, to September 4, 2025, lagging behind the index by approximately 3.07 percentage points [1][11]. - Most sub-sectors within the industry recorded negative returns during the same period, with the medical research outsourcing and chemical preparation sectors showing the highest gains of 12.17% and 5.45%, respectively, while the in vitro diagnostics and raw materials sectors experienced declines of 5.96% and 4.95% [2][14]. - Approximately 22% of stocks in the industry recorded positive returns, while about 78% experienced negative returns during the reporting period [15]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, with a decline of 1.27% from August 22, 2025, to September 4, 2025 [11]. - Most sub-sectors recorded negative returns, with medical research outsourcing and chemical preparations leading gains [14]. - The industry saw about 22% of stocks with positive returns, indicating a challenging market environment [15]. - The overall industry valuation remained stable, with a PE ratio of approximately 55.41 times as of September 4, 2025, relative to the Shanghai and Shenzhen 300 index [18]. 2. Industry News - The National Healthcare Security Administration announced the results of the 2025 national basic medical insurance drug directory adjustments, receiving 718 submissions, with 535 passing the initial review [21][25]. - The report highlights the upcoming negotiations for the national medical insurance, which may impact the industry significantly [25]. 3. Important Company Announcements - Guangzhou Baiyunshan Pharmaceutical Group announced that its subsidiary received approval for a drug to pass the consistency evaluation for generic drugs [26]. 4. Industry Outlook - The report suggests focusing on investment opportunities in innovative drugs and related sectors, particularly those with expected business development catalysts [27][30]. - Specific companies to watch include Mindray Medical, Yifeng Pharmacy, and Aier Eye Hospital, among others, which are positioned for potential growth [30].