中药行业周报：34家中药上市公司发布业绩预告，中药业绩表现继续向好

Investment Rating - The industry investment rating is "Overweight" [2] Core Views - The Chinese traditional medicine sector has shown a positive performance, with 34 listed companies reporting earnings forecasts, where 76% of them expect a year-on-year increase in net profit [6] - The sector experienced a significant decline of 10.1% last week, influenced by the U.S. biosecurity legislation, leading to a broader adjustment in the pharmaceutical sector [3][10] - The price-to-earnings (PE) ratio for the traditional medicine sector is 21.91X, down 2.45X from the previous week, indicating a downward trend in valuation [4] - The total index of traditional Chinese medicine prices increased by 0.3% last week, reflecting a stable market with slight upward momentum [5] Summary by Sections Industry Performance - The traditional medicine sector index closed at 6005.22 points, down 10.1% last week, while the overall pharmaceutical sector index fell by 11.61% [3][10] - Among the listed companies, Guangyuyuan, Shanghai Kaibao, and Dong'e Ejiao performed well, while companies like Longjin Pharmaceutical and Dali Pharmaceutical lagged behind [3] Valuation Metrics - The PE ratio for the traditional medicine sector is currently at 21.91X, with a one-year maximum of 33.61X and a minimum of 21.55X, indicating a valuation percentile of 13.8% over the past decade [4] - The price-to-book (PB) ratio stands at 2.16X, with a one-year maximum of 3.10X, reflecting a valuation percentile of 3.1% over the last ten years [4] Market Trends - The market for traditional Chinese medicine materials is stable, with a total price index of 255.10 points, showing a slight increase due to seasonal demand [5] - The performance of 34 listed companies indicates a strong outlook for 2024, driven by increased demand for respiratory and pandemic-related medications [6] Investment Strategy - The report suggests focusing on innovation within the traditional medicine sector and exploring new consumption opportunities under the "Traditional Medicine +" perspective [7][8] - Key areas of interest include companies with strong R&D capabilities and those that have products listed in the new medical insurance catalog [7]