Investment Rating - The industry investment rating is maintained at "Overweight" [1] Core Views - Vaccine companies are achieving breakthroughs in internationalization and research and development, while the pressure for winter epidemic prevention continues to highlight the need for effective measures [4][9] - The vaccine industry is transitioning from scale expansion to innovation-driven growth, with supply-demand imbalances and homogenized competition causing short-term challenges, but the long-term outlook remains positive due to supportive policies, increasing demand, and technological advancements [9][28] Summary by Sections Recent Developments - Zhifei Biological's subsidiary obtained a U.S. patent for an RSV vaccine, marking a significant step in its international market strategy [3] - Watson Bio's subsidiary received a marketing license for a 13-valent pneumonia vaccine in Egypt, enhancing its international presence [3] - Wuhan Institute of Biological Products achieved important progress in children's vaccine development, with two vaccines approved for clinical use [3] Market Performance - The vaccine sector saw a 1.33% increase last week, underperforming compared to other pharmaceutical sectors [5][6] - Year-to-date, the vaccine sector has experienced a cumulative decline of 5.12% [6] Valuation Metrics - The vaccine sector's PE (ttm) is 95.41X, with a PB (lf) of 1.87X, indicating a slight increase in valuation metrics compared to previous periods [7] Investment Recommendations - The vaccine industry is under pressure, with a focus on innovation and international expansion as key strategies for recovery [8] - Companies with high technical barriers and differentiated pipelines are recommended for investment, particularly those with strong research and development capabilities [9][28]

Investment Rating - The industry investment rating is maintained at "Overweight" [2] Core Viewpoints - The flu activity has risen to near three-year highs, highlighting the urgent demand for flu and related vaccines, and structural opportunities in the flu vaccine market should be closely monitored [5][9] - Recent developments in vaccine companies include clinical trial applications for new vaccines, indicating ongoing innovation and regulatory support for the industry [4][5] - The industry is experiencing a transition from scale expansion to innovation-driven growth, with a focus on high-tech barriers and differentiated pipeline layouts [9][10] Summary by Relevant Sections Recent Industry Performance - The vaccine sector has seen a relative decline of 28% over the past 12 months compared to the CSI 300 index, with a recent absolute decline of 14% [4][6] - The vaccine sector's PE (ttm) is 94.34X, down 7.53X from the previous period, while the PB (lf) is 1.85X, reflecting a decrease of 0.14X [8] Market Dynamics - The National Influenza Center reported a 53.8% increase in flu-like illness cases, with significant activity in both northern and southern provinces [4][5] - The China Vaccine Industry Association has advocated against "involutionary" competition to promote high-quality development in the vaccine sector [4] Investment Recommendations - The vaccine industry is under pressure, with a focus on finding alpha opportunities amid differentiation. Long-term attention should be given to innovation and international expansion [9][10] - Companies with strong R&D capabilities and differentiated products, such as CanSino and Kanghua Biotech, are recommended for investment [10][27]