Hengrui Pharma(SH:600276) BOHAI SECURITIES·2026-02-24 00:25Core Insights - The report highlights a stable continuation of the national drug procurement process, benefiting patients and encouraging active participation from companies [7][9] - The issuance of the National Essential Drug Directory Management Measures is noted, which is expected to impact the pharmaceutical industry positively [7][9] - The report emphasizes the strong performance of the innovative drug sector, particularly through collaborations like the one between Innovent Biologics and Eli Lilly, which showcases the strength of domestic innovative drug companies [8] Fixed Income Research - Inflation data indicates that the core CPI in January saw a month-on-month increase, reaching its highest level in nearly six months, driven by increased travel demand during the holiday season and rising international gold prices [3] - The primary market saw a slight decrease in the issuance scale of special bonds, with a total of 96 bonds issued amounting to 964.3 billion yuan during the reporting period [4] - The bond market exhibited a strong oscillation pattern, with the 10-year government bond yield testing downward around 1.8%, supported by manageable pre-holiday funding pressures [4][5] Industry Research - The Shanghai Composite Index rose by 1.43%, while the Shenzhen Component Index increased by 2.37% during the week, with the SW Pharmaceutical and Biological Index showing a modest increase of 0.23% [7] - The report notes that the SW Pharmaceutical and Biological Industry's price-to-earnings ratio (TTM) stands at 51.17 times, with a valuation premium of 259% relative to the CSI 300 [7] - The report suggests focusing on investment opportunities in innovative drugs, CXO, and upstream life sciences, while also monitoring performance recovery indicators as earnings reports are disclosed [8]