Investment Rating - The report maintains an "Overweight" rating for the in vitro diagnostics (IVD) industry [6][60]. Core Viewpoints - The IVD sector is currently under pressure, with a narrowing decline in revenue and net profit for Q3 2025. The total revenue for the IVD sector from Q1 to Q3 2025 was 27.62 billion, a year-on-year decrease of 14.5%, while the net profit attributable to shareholders was 4.49 billion, down 26.4% year-on-year. However, the decline in both revenue and net profit has slowed compared to Q2 2025. The performance pressure is attributed to medical insurance cost control and centralized procurement of IVD reagents, which is expected to reach a turning point as the procurement process is gradually implemented [5][54][60]. Summary by Sections Industry Performance - The pharmaceutical and biological sector saw a decline of 1.31%, while the IVD sector increased by 0.70% during the week. The IVD sector index closed at 8418.09 points [3][23]. Valuation Metrics - As of the end of the week, the IVD sector's price-to-earnings (PE) ratio was 36.85X, with a one-year maximum of 39.25X and a minimum of 20.96X. The price-to-book (PB) ratio was 1.85X, with a one-year maximum of 2.01X and a minimum of 1.53X. The PE ratio increased by 0.26X and the PB ratio increased by 0.01X compared to the previous week [4][33]. Investment Recommendations - The global IVD market is experiencing promising growth, and despite short-term pressures from medical insurance cost control and centralized procurement, the long-term outlook for the IVD industry remains positive. The report suggests focusing on the immunodiagnostics segment, particularly in chemiluminescence, molecular diagnostics (PCR), and continuous glucose monitoring (CGM) technologies, highlighting companies such as Sanofi, Shengxiang Biology, and Yahui Long [6][60].

Investment Rating - The report maintains an "Overweight" rating for the in vitro diagnostics (IVD) industry [7]. Core Views - The IVD industry is currently facing short-term performance pressure due to medical insurance cost control and centralized procurement of IVD reagents, but a turning point is anticipated as the industry adapts to these changes [4][57]. - The global IVD market is experiencing promising growth, and the domestic IVD industry is expected to recover in the long term as it has largely completed the process of localization [5][57]. Summary by Sections Industry Performance - The pharmaceutical and biological sector rose by 1.40%, while the IVD sector fell by 1.97% during the week [1][10]. - The IVD sector's current Price-to-Earnings (PE) ratio is 37.38X, with a Price-to-Book (PB) ratio of 1.89X [3][29]. Financial Results - In the first half of 2025, the IVD sector reported total revenue of 18.43 billion yuan, a year-on-year decline of 15.2%, and a net profit attributable to shareholders of 2.96 billion yuan, down 27.7% year-on-year [4][51]. - The revenue and net profit decline in Q2 2025 was more pronounced compared to Q1 2025 [4][53]. Investment Recommendations - The report suggests focusing on specific growth areas within the IVD sector, particularly in immunodiagnostics, chemiluminescence, molecular diagnostics (PCR), and continuous glucose monitoring (CGM) [5][57]. - Companies such as SanNuobiology, Shengxiang Biology, and Yahui Long are highlighted as key players to watch in these segments [5][57].