Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical industry, indicating a positive outlook for the sector compared to the overall market performance [2][22]. Core Insights - The pharmaceutical sector saw a weekly increase of 1.8%, outperforming the Shanghai Composite Index, which rose by 1.4% [3][5]. - The overall valuation of the pharmaceutical sector is at 24.0 times PE for 2025E, ranking 6th among 31 primary industries [5][8]. - Key events include the introduction of a new childcare subsidy policy in Hohhot, which may positively impact related pharmaceutical companies [10]. - The National Medical Insurance Administration has initiated pricing projects for neurological services, specifically for brain-computer interface technologies, which could create new market opportunities [10]. - A significant approval was granted to Kolun Pharmaceutical's TROP2 ADC for lung cancer treatment, marking a milestone in the industry [11]. Summary by Sections Market Performance - The pharmaceutical index increased by 1.8%, ranking 15th among 31 sub-industries [3][5]. - Various sub-sectors showed different performance levels, with offline pharmacies leading at +10.4% [5][6]. Key Events - Hohhot's childcare subsidy includes a one-time payment of 10,000 yuan for the first child and 50,000 yuan for the second child, potentially boosting the market for related pharmaceutical companies [10]. - The National Medical Insurance Administration's new pricing guidelines for neurological services include specific provisions for brain-computer interface technologies [10]. Company Highlights - Kolun Pharmaceutical's TROP2 ADC received approval for a new indication in lung cancer, which is expected to significantly benefit patient survival rates [11]. - The report suggests monitoring companies involved in childcare-related pharmaceuticals and those collaborating with Huawei in the medical field [10].

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical industry [7] Core Insights - The report emphasizes the leadership of Chinese companies in the PD-(L)1 bispecific antibody sector, highlighting it as a representative technology platform for new drug development in China [21][13] - The overall performance of the pharmaceutical sector has shown a 1.77% increase, outperforming both the ChiNext Index and the CSI 300 Index during the week of March 10-14 [13][14] Summary by Sections Recent Performance - The market experienced an upward trend with a notable surge on Friday, reflecting a shift from technology to non-technology sectors, particularly in consumer healthcare and policies related to the three-child policy [2][14] - The report notes that while innovative drugs and AI healthcare showed signs of correction, other themes such as consumer healthcare and small-cap innovations in Hong Kong gained traction [2][14] Future Outlook - In the short to medium term, the focus is on identifying opportunities in consumer healthcare, particularly those with attributes appealing to children and those positioned for consumption upgrades [15] - For 2025, the report anticipates improvements in the pharmaceutical payment sector due to supportive policies for commercial health insurance, indicating a gradual accumulation of positive changes [15] Strategic Allocation Thoughts - The report outlines two main strategies for investment: 1. **Pharmaceutical Style Rhythm**: Focus on consumer healthcare companies like Angelalign and Aier Eye Hospital, and innovative drug companies such as Innovent Biologics and BeiGene [16] 2. **Pharmaceutical Industry Logic**: Emphasizes the commercialization of innovative drugs and the integration of new technologies, with a focus on companies like CStone Pharmaceuticals and Zymeworks [17][19] Key Companies to Watch - The report suggests monitoring companies involved in PD-(L)1 bispecific antibodies, including CanSino Biologics, Innovent Biologics, and I-Mab Biopharma, as they are positioned at the forefront of clinical advancements [21][34]