GUOTAI HAITONG SECURITIES·2026-03-03 02:35Investment Rating - The report maintains an "Overweight" rating for the following A-share companies: Heng Rui Medicine, Yifang Bio, WuXi AppTec, Kailai Ying, Tigermed, United Imaging, Microelectrophysiology, Tongce Medical, Aier Eye Hospital, and Haizhi Science. These companies are included in the Guotai Junan Medical March 2026 portfolio [8][9] - The report also maintains an "Overweight" rating for the following H-share companies: Hansoh Pharmaceutical, 3SBio, CSPC Pharmaceutical Group, BeiGene, Kelun-Biotech, Innovent Biologics, CanSino Biologics, Precision Medicine, United Pharmaceutical, and Rongchang Biologics [8][10] Core Insights - The report continues to recommend the innovative pharmaceutical and medical device industry chain [2] - In February 2026, the pharmaceutical sector underperformed the broader market, with the Shanghai Composite Index rising by 1.1% while the SW Pharmaceutical and Biological Index fell by 0.2%, ranking 23rd among Shenwan's first-level industries [12][21] - The report highlights that the pharmaceutical sector's premium level relative to all A-shares is currently at a normal level, with a relative premium rate of 67.0% as of the end of February 2026 [18][21] Summary by Sections 1. Continued Recommendation for Innovative Pharmaceutical and Medical Device Industry Chain - The report emphasizes the ongoing recommendation for the innovative pharmaceutical and medical device industry chain [2] 2. February 2026 Pharmaceutical Sector Performance - The pharmaceutical sector underperformed the market in February 2026, with a decline of 0.2% compared to a 1.1% increase in the Shanghai Composite Index [12][21] - Among the sub-sectors, Traditional Chinese Medicine (+1.5%), Chemical Raw Materials (+1.3%), and Medical Devices (+0.9%) performed relatively well [14] 3. Performance of Hong Kong and US Pharmaceutical Sectors - In February 2026, the Hong Kong pharmaceutical sector outperformed the broader market, with the Hang Seng Medical Care Index declining by 2.1% and the Hang Seng Biotechnology Index by 1.2%, while the Hang Seng Index fell by 2.8% [21] - The US pharmaceutical sector also showed strength, with the S&P Healthcare Select Sector Index increasing by 3.6%, compared to a 0.9% decline in the S&P 500 [21]