GUOTAI HAITONG SECURITIES·2026-02-01 12:48Investment Rating - The report maintains an "Overweight" rating for the innovative pharmaceutical and medical device industry chain [4][10][13]. Core Insights - The report continues to recommend the innovative pharmaceutical and medical device industry chain, including a list of A-share and H-share stocks with an "Overweight" rating [2][10][13]. - In January 2026, the pharmaceutical sector underperformed the broader market, with the Shanghai Composite Index rising by 3.8% while the SW Pharmaceutical and Biological Index increased by 3.1% [15][19]. - The report highlights that the medical services, chemical raw materials, and medical devices sub-sectors performed relatively well, with increases of 8.8%, 5.6%, and 5.3% respectively [19][24]. - The report notes that the A-share pharmaceutical sector currently has a premium level of 61.1% compared to the overall A-share market [21][26]. Summary by Sections 1. Continued Recommendation for Innovative Pharmaceutical and Medical Device Industry - The report maintains an "Overweight" rating for the following A-share stocks: Hengrui Medicine, Kelun Pharmaceutical, Xinlitai, BeiGene, Teva Pharmaceutical, Jingxin Pharmaceutical, Yifang Biotechnology, WuXi AppTec, Kailai Pharmaceutical, Tigermed, Lepu Medical, United Imaging Healthcare, Microelectronic Physiology, and Tongce Medical [10][11][12]. - The report also maintains an "Overweight" rating for the following H-share stocks: Hansoh Pharmaceutical, 3SBio, Kelun Biotech, CanSino Biologics, and BeiGene [13]. 2. January 2026 Pharmaceutical Sector Performance - The report indicates that the pharmaceutical sector's performance was weaker than the market, ranking 18th among the Shenwan first-level industries [15][16]. - The report provides details on individual stock performances, with the top gainers being Hongbo Pharmaceutical (+61.4%), Baolai Technology (+55.2%), and Hualan Biological (+51.7%) [21]. 3. January 2026 Hong Kong and US Pharmaceutical Sector Performance - The Hong Kong pharmaceutical sector outperformed the market, with the Hang Seng Healthcare Index rising by 8.6% and the Hang Seng Biotechnology Index by 8.5% [24]. - In contrast, the US pharmaceutical sector underperformed, with the S&P Healthcare Select Sector Index declining by 0.3% [24].