Guoxin Securities·2026-01-11 12:54Core Insights - The report continues to recommend innovative drugs and the related industry chain, highlighting the strong growth potential in the pharmaceutical sector through 2026 [1][4]. Investment Strategy - The investment strategy emphasizes the focus on the CXO sector, particularly in chemical CDMO, where Chinese companies hold significant advantages in talent, chemical capabilities, compliance production, and intellectual property protection [4]. - The report suggests that the upcoming JPM conference will provide updates on the operational progress of Chinese innovative drug companies, which have shown a long-term positive development trend [4]. - The recommended investment portfolio includes A-shares such as Mindray Medical, WuXi AppTec, and Aier Eye Hospital, as well as H-shares like Kangfang Biologics and WuXi Biologics [4][5]. Industry Performance - The pharmaceutical industry experienced a decline of 4.10% in December, underperforming the CSI 300 index by 6.38% [8]. - The report notes that the chemical pharmaceutical sector saw the largest declines among sub-sectors, with a drop of 5.80% [12]. Market Data - For the period from January to November 2025, the pharmaceutical manufacturing industry's total revenue was 220.65 billion yuan, reflecting a year-on-year decrease of 2.0% [7]. - The total retail sales of consumer goods reached 45.61 trillion yuan, with retail sales of Western and Chinese medicines amounting to 660.4 billion yuan, a year-on-year increase of 1.8% [7]. Regulatory Environment - The report discusses the impact of the U.S. "Biological Safety Act," which is expected to have a limited short-term effect on Chinese CXO companies, while emphasizing the need to monitor the long-term implications of international competition and regulatory changes [22]. Recent Drug Approvals - In December 2025, a total of 16 innovative drugs or biosimilars were approved for market entry, including six domestic and ten imported products [24][25].