Group 1 - The core viewpoint emphasizes the continuous catalysis in the innovative drug sector of the pharmaceutical and biotechnology industry, with a focus on areas such as anti-tumor, autoimmune, GLP-1, stem cells, and gene therapy [1] - The CXO sector is expected to see a valuation recovery due to supportive policies for innovative drug development in China and a reduction in overseas geopolitical risks [1] - In the blood products sector, there is an increasing demand for intravenous immunoglobulin (IVIG) in critical care, driven by an expanding market and a price increase in high-end chromatography IVIG, with a short-term shortage expected to persist [1] Group 2 - The vaccine sector is under pressure, but some key companies are showing marginal performance improvements, with attention on new areas such as shingles and the penetration potential of domestic high-cost performance HPV manufacturers [1] - In traditional Chinese medicine, it is recommended to focus on companies related to fertility subsidies [1] - The medical device sector is experiencing accelerated replacement due to centralized procurement, with a focus on the replacement potential in electrophysiology and neurointervention fields [1] Group 3 - The low-value consumables industry is gradually completing inventory destocking, with attention on cyclical upward opportunities and the potential of the GLP-1 industry chain [1] - The Vaccine ETF (159643) tracks the Vaccine Biotechnology Index (980015), which is compiled by China Securities Index Co., Ltd., selecting listed companies involved in vaccine research, production, and sales from the A-share market [1] - The Vaccine Biotechnology Index aims to reflect the overall performance of listed companies related to vaccines and biotechnology [1]

Investment Rating - The report maintains a "Buy" rating for the healthcare services industry [6]. Core Insights - The easing of tariffs between China and the U.S. is expected to lead to a valuation recovery for the CXO sector, which has been under pressure due to previous tariff escalations [2]. - The tariff relief is anticipated to lower production costs for medical devices, enhancing competitiveness in overseas markets, particularly in the U.S. [3]. - The report suggests that domestic companies in the medical device sector are well-positioned to capture market opportunities in the U.S. due to increased demand for cost-effective products [3]. Summary by Sections CXO Sector - The impact of U.S.-China tariffs on the CXO sector is complex, with CRO services not directly affected by tariffs but facing uncertainty regarding future tariff increases [2]. - CDMO companies are also navigating complex influences, as their clients are often multinational firms with production bases outside the U.S., allowing them to mitigate tariff impacts [2]. Medical Devices - Domestic companies have made significant advancements in high-end medical equipment and diagnostics, gradually replacing imports [3]. - The tariff easing is expected to stabilize supply chain costs and improve the global market competitiveness of Chinese medical device manufacturers [3]. - There are specific opportunities in the U.S. market, particularly in price-sensitive segments and high-end equipment, where reduced tariffs could facilitate market entry [3]. Investment Recommendations - The report recommends focusing on companies with significant exposure to overseas CRO and CDMO markets, such as WuXi AppTec, and those with substantial U.S. sales in medical devices, like Yihua Jaye [4]. - Companies with strong international expansion capabilities, such as Aihua Long and Shengxiang Biology, are also highlighted as potential investment opportunities [4].