GUOTAI HAITONG SECURITIES·2026-02-01 13:20Investment 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][24]. - 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's premium level is currently at a normal level, with a relative premium rate of 61.1% as of the end of January 2026 [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, Teru Biopharma, Jingxin Pharmaceutical, Yifang Biopharma, WuXi AppTec, Kailai Pharmaceutical, Tigermed, Lepu Medical, United Imaging, Microelectrophysiology, and Tongce Medical, and includes these stocks in the February 2026 monthly portfolio [10][12][13]. 2. January 2026 Pharmaceutical Sector Performance - The report states that the pharmaceutical sector underperformed the market in January 2026, with the SW Pharmaceutical and Biological Index ranking 18th among the Shenwan first-level industries [15][16][24]. 3. January 2026 Performance of Hong Kong and US Pharmaceutical Sectors - The Hong Kong pharmaceutical sector outperformed the market, with the Hang Seng Healthcare Index rising by 8.6% and the biotechnology sector by 8.5%, compared to a 6.9% increase in the Hang Seng Index [24]. - Conversely, the US pharmaceutical sector underperformed, with the S&P Healthcare Select Sector Index declining by 0.3% while the S&P 500 rose by 1.4% [24].