Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector in the next six months [1][29]. Core Insights - The pharmaceutical and biotechnology sector has shown strong performance, with an overall increase of 4.00% in the week from July 14 to July 18, outperforming the CSI 300 index by 2.91 percentage points [3][11]. - Year-to-date, the sector has risen by 16.59%, ranking third among 31 industries, and has outperformed the CSI 300 index by 13.45 percentage points [3][13]. - The current PE valuation for the pharmaceutical and biotechnology sector stands at 30.02 times, which is at the historical median level, with a valuation premium of 137% compared to the CSI 300 index [3][17]. Market Performance - The pharmaceutical and biotechnology sector's sub-sectors that performed best last week include chemical pharmaceuticals (6.86%), biological products (3.68%), and medical services (3.14%) [3][11]. - A total of 397 stocks (82.88%) in the sector increased in value, while 70 stocks (14.61%) decreased [3][23]. - The top five performing stocks were: - Borui Pharmaceutical (42.35%) - Lisheng Pharmaceutical (41.68%) - Nanxin Pharmaceutical (34.95%) - Aosaikang (32.77%) - Yipinhong (32.13%) [3][24]. Industry News - The 11th batch of national centralized procurement was officially launched on July 15, with 55 drug varieties included, focusing on mature clinical drugs and excluding new drugs from procurement [4][25]. - He Yuan's plant-derived recombinant human serum albumin (HY1001) was approved for domestic marketing on July 18, aimed at treating liver cirrhosis with low albumin levels [4][26]. Investment Recommendations - The report suggests that the pharmaceutical and biotechnology sector remains a strong investment opportunity, particularly in innovative drugs, CXO, medical devices, traditional Chinese medicine, chain pharmacies, and medical services [5][27]. - Recommended stocks include: - Buy: Betta Pharmaceuticals, Teva Biologicals, Lao Baixing, Huaxia Eye Hospital, Qianhong Pharmaceutical, Baipusais [5][27]. - Focus: Kelun Pharmaceutical, Rongchang Biotechnology, Lizhu Group, Lingrui Pharmaceutical, Kaili Medical, Kangtai Biotechnology [5][27].

Core Viewpoint - The Tianhong Advanced Manufacturing A Fund (011851) reported a profit of 300,400 yuan for Q2 2025, with a net value growth rate of 0.26% and a fund size of 147 million yuan as of the end of Q2 2025 [2][17]. Fund Performance - The fund's weighted average profit per share for the reporting period was 0.002 yuan [2]. - As of July 18, 2025, the fund's unit net value was 1.059 yuan [2]. - The fund's performance over different time frames includes: - 3-month net value growth rate: 10.59%, ranking 100 out of 171 comparable funds [4]. - 6-month net value growth rate: 4.78%, ranking 112 out of 171 comparable funds [4]. - 1-year net value growth rate: 16.01%, ranking 97 out of 166 comparable funds [4]. - 3-year net value growth rate: -11.88%, ranking 26 out of 125 comparable funds [4]. - The fund's Sharpe ratio over the past three years was 0.0736, ranking 26 out of 120 comparable funds [10]. - The maximum drawdown over the past three years was 40.31%, ranking 112 out of 122 comparable funds [12]. Investment Strategy and Outlook - The fund manager anticipates a more optimistic market in the second half of the year, contingent on a stable external environment [3]. - Key investment directions for the second half include: - Cyclical sectors benefiting from domestic economic improvement, extending from consumption to manufacturing and from downstream to upstream [3]. - High-tech sectors benefiting from domestic industrial restructuring, including new energy, AI applications, computing power construction, aerospace manufacturing, and innovative pharmaceuticals [3]. Fund Holdings - As of June 30, 2025, the fund's top ten holdings included: - Geely Automobile, CATL, Air China, China Power, Zhongtian Technology, Shantui, Guangdong Hongda, Xiamen Tungsten, AVIC Shenyang Aircraft, and Torch Electronics [20]. Fund Positioning - The fund maintained an average stock position of 87.59% over the past three years, with a peak of 93.24% at the end of 2024 and a low of 70.32% in mid-2021 [15].

AI基金前海开源医疗健康A（005453）披露2025年二季报，第二季度基金利润5704.41万元，加权平均基金份额本期利润0.123元。报告期内，基金净值增长 率为12.63%，截至二季度末，基金规模为4.98亿元。 该基金属于灵活配置型基金，长期投资于医药医疗股票。截至7月18日，单位净值为1.307元。基金经理是范洁，目前管理3只基金。其中，截至7月18日，前 海开源公共卫生股票A近一年复权单位净值增长率最高，达48.8%；前海开源中药股票A最低，为-4.57%。 基金管理人在二季报中表示，2025 年 2 季度本产品重点配置了具有更高成长弹性的生物科技企业和创新药产品进入收获期的传统医药企业，从产业趋势来 看，海外专利悬崖带来的海外药企对于创新药产品的需求和国内医药企业批量供给创新药产品的共振将持续，我们有机会看到中国企业通过创新药批量出 海，从对外授权到逐步实现自主商业化。本基金将加强对行业基本面的研究和对宏观趋势的把握，通过自上而下的分析方法对于医药细分子行业进行配置上 的调整，通过自下而上的分析方法对个股的基本面、估值水平等进行投资价值判断，力争获得持续稳定的超额回报。 截至7月18日，前海开源 ...

Core Viewpoint - The report highlights a positive performance in the pharmaceutical sector, particularly in the innovative drug industry, driven by ongoing licensing agreements and supportive domestic policies [3]. Fund Performance - The fund reported a profit of 26.97 million yuan in Q2 2025, with a weighted average profit per fund share of 0.0627 yuan [2]. - The fund's net asset value (NAV) growth rate for Q2 was 7.62%, and the fund size reached 375 million yuan by the end of Q2 [2][16]. - As of July 18, the fund's unit NAV was 0.96 yuan [2]. - The fund's performance over the past three months showed a NAV growth rate of 14.74%, ranking 112 out of 138 comparable funds [4]. - Over the past six months, the fund's NAV growth rate was 25.40%, ranking 100 out of 138 [4]. - The one-year NAV growth rate was 24.99%, also ranking 100 out of 133 [4]. - The three-year NAV growth rate was 4.99%, ranking 46 out of 107 [4]. Investment Strategy - The fund manager expressed optimism about the innovative drug sector, indicating a shift from a general revaluation phase to a stage where actual performance and partnerships will be tested [3]. - The strategy includes a "barbell" approach, focusing on high-probability or high-return innovative drug companies [3]. - The fund is also looking at sectors with strong performance, such as orthopedics and upstream innovative drugs, while making early allocations in improving sectors like medical devices [3]. - New technologies like AI and brain-computer interfaces are expected to transform the healthcare system, although short-term financial impacts on related companies may be limited [3]. Risk and Return Metrics - The fund's three-year Sharpe ratio was 0.1406, ranking 41 out of 105 comparable funds [9]. - The maximum drawdown over the past three years was 29.8%, ranking 97 out of 106 [11]. - The fund's average stock position over the past three years was 85.43%, slightly below the comparable average of 86.95% [14].

Core Viewpoint - The AI Fund Jin Ying Responsible Investment Mixed A (011155) reported a profit of 224,400 yuan in Q2 2025, with a net value growth rate of 1.55% and a fund size of 15.244 million yuan as of the end of Q2 2025 [3][16]. Fund Performance - The fund's weighted average profit per share for the period was 0.0071 yuan [3]. - As of July 18, 2025, the fund's unit net value was 0.528 yuan [3]. - The fund's one-year cumulative net value growth rate reached 11.43%, the highest among its peers, while the lowest was 2.26% for Jin Ying New Energy Mixed A [3]. Market Analysis - In Q2 2025, the CSI 300 Index rose by 1.25% and the Hang Seng Index increased by 4.12% [3]. - Sectors such as military, banking, communication, media, and agriculture performed well, while food, home appliances, steel, building materials, and automotive sectors lagged [3]. - Concerns about the sustainability of demand for cyclical consumer goods have emerged after subsidy stimuli since last year, while AI-related industries, particularly export-related, showed significant performance growth following easing trade war tensions [3]. Investment Strategy - For Q3 2025, the fund will focus on AI technological advancements, emerging consumer trends, and innovative pharmaceuticals, maintaining a high allocation in Hong Kong stocks [4]. - The fund will adopt an active investment strategy, emphasizing growth in A-shares and internet sectors in Hong Kong [4]. Comparative Performance - As of July 18, 2025, the fund's three-month cumulative net value growth rate was 13.85%, ranking 136 out of 328 comparable funds [4]. - The six-month cumulative net value growth rate was 15.33%, ranking 97 out of 328 [4]. - The fund's three-year cumulative net value growth rate was -37.90%, ranking 239 out of 249 [4]. Risk Metrics - The fund's three-year Sharpe ratio was -0.4456, ranking last among comparable funds at 249 out of 249 [10]. - The maximum drawdown over the past three years was 54.26%, with the largest single-quarter drawdown occurring in Q3 2023 at 29.88% [12]. Fund Holdings - As of Q2 2025, the top ten holdings of the fund included Tencent Holdings, Xiaomi Group-W, Pop Mart, China Oriental Education, Hong Kong Stock Exchange, CATL, Lens Technology, Huadian Technology, Zijin Mining, and AAC Technologies [19]. Fund Positioning - The average stock position over the past three years was 85.65%, with a peak of 91.94% at the end of H1 2025 and a low of 59.3% at the end of H1 2021 [15].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - From July 14 - 18, 2025, the A - share market continued to rise, with the Shanghai Composite Index up 0.69%, the CSI 300 up 1.09%, the ChiNext Index up 3.17%, and growth style outperforming value style. Sectors such as optical modules, innovative drugs, and rare earths led the gains [1][12]. - Policy game may intensify. The July Politburo meeting is approaching, and "anti - involution" measures have become the focus, which may drive market enthusiasm in the short term [2][12]. - The technology chain has many catalysts. The AI industry is still in a high - prosperity stage, with the domestic model iteration accelerating and narrowing the gap with overseas advanced models. The restart of large companies' computing power expenditure may drive the computing power infrastructure and the entire AI industry chain [3][13]. - The valuation of innovative drugs is ahead. The valuation of innovative drugs is significantly advanced, making it difficult to make investment decisions based on company performance tracking. If future liquidity remains abundant, attention should be paid to the diversion effect of other thematic sectors [3][14]. - The China Securities A500 Free Cash Flow Index was officially launched on July 16, 2025, which provides a differentiated index selection [15]. Summary by Relevant Catalogs 1. Weekly Market Observation 1.1. Equity Market Review and Observation - **Market Performance**: From July 14 - 18, 2025, the A - share market continued to rise. The Shanghai Composite Index rose 0.69%, the CSI 300 rose 1.09%, the CSI 500 rose 1.20%, and the ChiNext Index rose 3.17%. The average daily trading volume of A - shares was 1546.2 billion, showing a month - on - month increase [12]. - **Policy and Economic Situation**: In the second - quarter economic data, although domestic demand indicators such as consumption and investment declined in June, the strong production side drove the GDP to grow by 5.2% year - on - year in the second quarter. The Central Urban Work Conference focused on old - city renovation and urban village renewal. The July Politburo meeting is approaching, and "anti - involution" measures may drive short - term market enthusiasm [12]. - **Technology Chain Catalysts**: In the technology chain, especially in the AI field, there were many positive events last week. The approval of the H20 chip for sale in China, the release of the Kimi K2 model, and the launch of ChatGPT Agent all indicate that the AI industry is in a high - prosperity stage. The restart of large companies' computing power expenditure may drive the industry chain [13]. - **Innovative Drugs**: The 11th batch of centralized procurement of drugs was announced, and the new rules left room for innovation. The valuation of innovative drugs is significantly advanced, and attention should be paid to the diversion effect of other sectors [14]. 1.2. Public Fund Market Dynamics - The China Securities A500 Free Cash Flow Index was officially launched on July 16, 2025. It selects 50 listed company securities with high free cash flow rates from the CSI A500 Index samples to reflect the performance of companies with strong cash - generating capabilities. It provides a differentiated index selection [15][16]. 2. Active Equity Fund Index Performance Tracking | Index Classification | Last Week | Last Month | Year - to - Date | Since Inception | | --- | --- | --- | --- | --- | | Strategy and Thematic | Active Equity Fund Selection | 3.42% | 6.55% | 14.46% | 15.39% | | Investment Style | Value Equity Fund Selection | 0.81% | 2.94% | 6.45% | 6.53% | | | Balanced Equity Fund Selection | 3.61% | 7.42% | 11.87% | 9.42% | | | Growth Equity Fund Selection | 4.96% | 9.19% | 22.90% | 11.85% | | Industry Thematic | Pharmaceutical Equity Fund Selection | 9.79% | 16.18% | 46.28% | 26.72% | | | Consumption Equity Fund Selection | - 1.42% | 1.34% | 8.82% | 1.81% | | | Technology Equity Fund Selection | 4.92% | 9.57% | 17.07% | 18.91% | | | High - end Manufacturing Equity Fund Selection | 4.14% | 8.82% | 7.49% | 2.30% | | | Cyclical Equity Fund Selection | 0.66% | 3.37% | 12.54% | 4.59% | Each sub - index has its own positioning and performance benchmark: - **Active Equity Fund Selection**: Select 15 funds each period, with equal - weight allocation. The core positions select funds based on performance competitiveness and style stability, and the style allocation is balanced according to the CSI Active Stock Fund Index. The performance benchmark is the Active Equity Fund Index (930980.CSI) [18]. - **Value Equity Fund Selection**: Select 10 funds with deep - value, quality - value, and balanced - value styles. The performance benchmark is the CSI 800 Value Index (H30356.CSI) [20]. - **Balanced Equity Fund Selection**: Select 10 relatively balanced and value - growth style funds. The performance benchmark is the CSI 800 (000906.SH) [20][22]. - **Growth Equity Fund Selection**: Select 10 growth - style funds. The performance benchmark is the 800 Growth Index (H30355.CSI) [23]. - **Pharmaceutical Equity Fund Selection**: Select 15 funds with a high proportion of pharmaceutical industry holdings. The performance benchmark is the Pharmaceutical Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [24][27][28]. - **Consumption Equity Fund Selection**: Select 10 funds with a high proportion of consumption - related industry holdings. The performance benchmark is the Consumption Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [28]. - **Technology Equity Fund Selection**: Select 10 funds with a high proportion of technology - related industry holdings. The performance benchmark is the Technology Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [31]. - **High - end Manufacturing Equity Fund Selection**: Select 10 funds with a high proportion of high - end manufacturing industry holdings. The performance benchmark is the High - end Manufacturing Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [31]. - **Cyclical Equity Fund Selection**: Select 5 funds with a high proportion of cyclical industry holdings. The performance benchmark is the Cyclical Thematic Fund Index (fitted by Huabao Fund Research and Investment Platform) [36].

Investment Rating - The investment rating for the industry is "Positive" and the rating has been maintained [2] Core Insights - The pharmaceutical and biotechnology industry index increased by 5.89%, ranking third among 31 primary industries, outperforming the CSI 300 index which rose by 1.92% [5][17] - The sub-industries of medical research outsourcing and chemical preparations saw significant gains of 13.94% and 8.43% respectively, while offline pharmacies experienced a decline of 3.91% [5][17] - As of July 18, 2025, the overall PE (TTM) for the pharmaceutical and biotechnology industry is 30.09x, up from 28.52x in the previous period, indicating an upward trend in valuation but still below the average [6][22] - The top three sub-industries by PE (TTM) are vaccines (57.37x), hospitals (37.75x), and other biological products (36.95x), while pharmaceutical circulation has the lowest valuation at 15.84x [6][22] Industry Review - The report highlights that 37 listed companies in the pharmaceutical and biotechnology sector experienced a net reduction in shareholder holdings amounting to 2.182 billion yuan, with 4 companies increasing their holdings by 145 million yuan and 33 companies reducing theirs by 2.328 billion yuan [6] Important Industry News - The National Medical Products Administration (NMPA) approved the BCL-2 inhibitor "Lisatinib" for market entry, marking it as the first domestic product of its kind [8] - The NMPA also approved "Recombinant Human Albumin Injection (Rice)" as the first of its kind in China [8] - The eleventh batch of national procurement rules has been optimized, significantly reducing policy uncertainty for innovative drugs [9] Investment Recommendations - The report suggests continued attention to pharmaceutical companies with innovative capabilities and those with high-end and cost advantages in generic drugs, especially in light of the optimized procurement rules that favor high-quality production and cost-effective generics [9]

Core Viewpoint - The A-share market continues to rise, with growth style outperforming value style, driven by sectors such as optical modules, innovative drugs, and rare earths [2][15]. Group 1: Equity Market Review and Observation - The A-share market saw the Shanghai Composite Index rise by 0.69%, the CSI 300 by 1.09%, and the ChiNext Index by 3.17% during the week of July 14-18, 2025 [2][15]. - The average daily trading volume in the A-share market increased to 15,462 billion [15]. - The upcoming Politburo meeting is expected to focus on "anti-involution" measures, which may sustain market interest in the short term [3][15]. - The AI industry remains in a high prosperity phase, with domestic model iterations accelerating, potentially boosting the entire AI industry chain [3][16]. - The innovative drug sector is experiencing significant valuation pre-positioning, making it challenging to track investment decisions through company performance [3][18]. Group 2: Public Fund Market Dynamics - The China Securities Index Co., Ltd. announced the launch of the CSI A500 Free Cash Flow Index on July 16, 2025, which will include 50 companies with high free cash flow rates [4][19]. - Free cash flow is a critical indicator of a company's financial health, focusing on firms with stable operations and cash generation capabilities [19]. Group 3: Active Equity Fund Index Performance Tracking - The Active Equity Fund Selection Index rose by 3.42% last week, achieving a cumulative excess return of 12.16% since inception [5][20]. - The Growth Stock Selection Index increased by 4.96%, with a cumulative excess return of 18.83% since inception [8][20]. - The Pharmaceutical Stock Selection Index surged by 9.79%, with a cumulative excess return of 23.77% since inception [9][20]. - The Technology Stock Selection Index rose by 4.92%, achieving a cumulative excess return of 17.21% since inception [11][20].

Group 1 - The report highlights that the technology sector is leading the equity market, with the Nasdaq index reaching new highs driven by the seven major tech companies in the US, and significant performance in the domestic AI industry chain [3][10] - The overall net inflow of ETF funds for the week was 56.236 billion, with notable inflows in cross-border and bond ETFs, while stock, commodity, and money market ETFs experienced net outflows [11][20] - The report indicates that the bond ETF market is seeing strong demand, particularly for the Sci-Tech bond ETF, which had a net inflow of 66.8 billion, contributing significantly to the overall growth [11][20] Group 2 - The top-performing stock ETFs are focused on innovative pharmaceuticals and AI-related sectors, with significant interest in indices such as the ChiNext AI and Cloud Computing 50 [16][18] - Despite an overall net outflow in stock ETFs, there is a notable reverse trend in certain themes, particularly in sectors like animation and gaming, which saw inflows [17][19] - The bond ETF indices are performing well, with the convertible bond ETF index showing a weekly increase of 0.46%, and credit bonds continuing to attract capital with a net inflow of 68.562 billion this week [20][23] Group 3 - The financing analysis indicates that the top ten ETFs by net buy amount are concentrated in themes such as AI, convertible bonds, and innovative pharmaceuticals, reflecting market enthusiasm for these strong sectors [25]

Core Viewpoint - The pharmaceutical industry is undergoing a profound transformation from "following innovation" to "source breakthrough," driven by new quality productivity and technological innovation [2][12]. Company Overview - Guangdong Zhongsheng Pharmaceutical Co., Ltd. was established in 1979 and listed on the Shenzhen Stock Exchange in December 2009, with stock code 002317 [4]. - The company integrates drug research and development, production, and sales, positioning itself as one of China's top 100 pharmaceutical companies [4]. - Zhongsheng Pharmaceutical focuses on high-quality products and services, with a product portfolio covering major disease areas such as cardiovascular, respiratory, ophthalmology, and digestion [4]. Innovation and Product Development - The company has established a development strategy centered on traditional Chinese medicine, innovation, and focusing on specialty areas, with core products including the Compound Thrombus Tong series and Brain Thrombus Tong capsules [4]. - Zhongsheng is the only domestic company with innovative drugs for both COVID-19 and influenza, having successfully launched the first peptide 3CL single-agent antiviral drug for COVID-19 and the first RNA polymerase PB2 protein inhibitor for influenza [4][8]. - The company has invested in innovative drug development, with two new drugs launched recently, including the innovative drug for treating adult influenza, which was approved in May [8]. Digital Transformation - The company is investing 300 million yuan in its subsidiary to create a smart, digital, and intensive traditional Chinese medicine extraction workshop [9]. - Advanced technologies such as cloud computing, big data, artificial intelligence, and IoT are being utilized to enhance the entire pharmaceutical supply chain [7][9]. Sustainable Development Strategy - Zhongsheng emphasizes the coordination between traditional and emerging businesses, proposing a sustainable development structure that includes innovative drugs as the leading force, traditional Chinese medicine as the foundation, and chemical generics as support [10]. - The company has maintained a research and development investment of over 8% of its revenue annually since 2010, with recent years exceeding 10% [12]. Industry Trends - The core of new quality productivity in the biopharmaceutical industry lies in technological innovation and the transformation of results [6]. - The industry is expected to evolve towards innovation-driven and high-quality growth, supported by policy, market changes, and technological advancements [6].