Core Viewpoint - The biotechnology and innovative pharmaceutical industry in China has experienced volatility due to high valuations from previous increases, uncertainty in national medical insurance drug pricing, delays in business expansion expectations, and year-end fund sell-offs [1] Industry Summary - The market liquidity remains robust, making valuations of quality companies increasingly attractive [1] - Business expansion activities are ongoing, with the potential for large transactions still possible, and further downside price risks appear limited [1] - The rising proportion of innovative drugs and accelerated profit growth indicate that the current pullback is a healthy consolidation, providing attractive opportunities for deployment in the coming year [1] Company Summary - For CSPC Pharmaceutical Group (01093), delays in business expansion execution have weakened investor confidence, creating a more attractive buying opportunity [1] - Assuming business expansion resumes as expected, the price-to-earnings ratio remains very attractive [1] - The possibility of completing several smaller business expansion transactions before year-end is still likely, with Q3 performance potentially serving as a recent catalyst [1] - For Sinopharm Group (01099), improvements in accounts receivable days and the initiation of the "14th Five-Year Plan" will support the recovery of profit momentum [1] - Current stock price levels offer an appealing dividend yield and a low price-to-earnings ratio, with significant upside potential as operational efficiency continues to improve [1]