GUOTAI HAITONG SECURITIES·2025-11-23 12:48Investment Rating - The report maintains an "Overweight" rating for the innovative pharmaceutical and medical device industry chain [3][5]. Core Viewpoints - The innovative pharmaceutical sector is experiencing high prosperity, with a recommendation for companies like Heng Rui Medicine, Hansoh Pharmaceutical, Sanofi Pharmaceutical, Kelun Pharmaceutical, and Enhua Pharmaceutical to maintain an "Overweight" rating. The report also suggests that Biopharma/Biotech companies such as Kelun Biotech, BeiGene, Baillie Gifford, Yimeng Biotech, Jingxin Pharmaceutical, Teva Biotech, WuXi Biologics, and Ailisi should also be rated "Overweight" as their innovative pipelines are gradually being realized and their performance is entering a growth phase. Additionally, it recommends CXO and upstream pharmaceutical companies like Haoyuan Medicine, Baipusais, WuXi AppTec, WuXi AppTec, and Tigermed to maintain an "Overweight" rating. The report highlights leading medical device companies such as United Imaging, Lepu Medical, Spring Medical, and Huatai Medical as having potential for recovery, also maintaining an "Overweight" rating [5][6]. Summary by Sections - A-Share Market Performance: In the third week of November 2025, the A-share pharmaceutical sector underperformed the broader market, with the Shanghai Composite Index falling by 3.9% and the SW Pharmaceutical and Biological Index declining by 6.9%, ranking 23rd among Shenwan's primary industries [7][9]. - Hong Kong and US Market Performance: The Hong Kong pharmaceutical sector also underperformed, with the Hang Seng Healthcare Index and the Hong Kong Biotechnology Index both down by 7.5%, while the US healthcare sector outperformed, with the S&P Healthcare Select Sector Index rising by 1.8% [17]. - Valuation Metrics: As of November 21, 2025, the pharmaceutical sector's premium level relative to the entire A-share market is at a normal level, with a current relative premium rate of 71.8% [13][16].