Soochow Securities·2026-02-01 11:38Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry, with a focus on companies like Haoyuan Pharmaceutical and Aopumai [1]. Core Insights - The report highlights a recovery in the upstream research sector supported by interest rate cuts and other factors, indicating a renewed focus on early-stage research projects by pharmaceutical companies [4][16]. - The A-share pharmaceutical index has shown a year-to-date increase of 3.14%, outperforming the CSI 300 index by 2.51% [4]. - The report emphasizes the importance of innovation in drug development, particularly in early-stage projects, and suggests that the demand for life sciences services will increase as funding becomes more available [4][16]. Summary by Sections Industry Trends - The A-share pharmaceutical index has decreased by 3.31% this week, while the Hang Seng Biotechnology Index has decreased by 3.24% [4][9]. - The report notes that the pharmaceutical sector is experiencing a rebound in demand, driven by both domestic and international factors, including a resurgence in IPOs and funding opportunities [16][18]. Research and Development Progress - The report details significant advancements in innovative drugs and improved drugs, with several companies submitting applications for new drug approvals [20]. - Companies like Roche and Relay Therapeutics are making strides in clinical trials, with Roche submitting an application for Giredestrant for breast cancer treatment [4][20]. Recommended Stocks - The report suggests focusing on specific companies based on sub-industry strengths, including: - CXO and upstream research services: WuXi AppTec, Haoyuan Pharmaceutical, Aopumai, and King’s Ray Biotechnology [12]. - Traditional Chinese medicine: Jichuan Pharmaceutical, Zuoli Pharmaceutical, and Fangsheng Pharmaceutical [12]. - PD1 PLUS: 3SBio, Kangfang Biotech, and Innovent Biologics [12]. - ADC: InnoCare Pharma and Kelun-Biotech [12]. - AI drug development: Jingtaikong Holdings [12].