WuXi AppTec(SH:603259) Xiangcai Securities·2026-03-08 09:16Investment Rating - The report maintains a "Buy" rating for the medical services industry [6][10] Core Insights - The medical and biological sector experienced a decline of 2.78%, ranking 17th among 31 primary industries [2] - The government has elevated the strategic importance of the biopharmaceutical industry, designating it as a "new pillar industry" [5][6] - The focus for 2026 has shifted towards "high-quality" development in innovative pharmaceuticals and medical devices [6] Summary by Sections Industry Performance - The medical services sector's PE (ttm) is 32.48X, with a recent decline of 1.63X, while the PB (lf) is 3.29X, down by 0.16X [4] - The medical services sector index closed at 6863.51 points, down 4.71% for the week, but up 33.71% year-to-date [25] Government Initiatives - The government aims to enhance the medical service system, optimize medical insurance and procurement, and expand long-term care insurance coverage to 300 million people [5] - Key tasks for 2026 include improving emergency services, optimizing medical layouts, and promoting collaboration between traditional and Western medicine [6] Company Performance - Notable performers in the medical services sector include International Medicine (+4.2%), Nuotai Biological (+3.9%), and Heyuan Biological (+3.1%) [3] - Underperformers include Haoyuan Pharmaceutical (-12.3%) and Nossger (-10.3%) [3] Investment Recommendations - Focus on high-growth areas such as ADC CDMO and peptide CDMO in the pharmaceutical outsourcing sector, with companies like WuXi AppTec and Haoyuan Pharmaceutical highlighted [10] - Consider companies in the third-party testing laboratories and consumer healthcare sectors, such as Aier Eye Hospital and Dean Diagnostics, which are expected to see a recovery in profitability [10]