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]