Market Overview - On May 23, the A-share market experienced a collective pullback, with the Shanghai Composite Index down 0.94% to 3348.37 points, the Shenzhen Component down 0.85% to 10132.41 points, and the ChiNext Index down 1.18% to 2021.50 points [1] - The total trading volume in the Shanghai and Shenzhen markets was 115.56 billion yuan, an increase of 52.9 billion yuan compared to May 22 [1] - The market saw more declines than gains, with 1107 stocks rising and 4204 stocks falling, including 51 stocks hitting the daily limit up and 20 stocks hitting the daily limit down [1] Pharmaceutical Sector - The pharmaceutical sector, particularly the innovative drug segment, showed strong performance on May 23, with 181 stocks in the innovative drug sector, 109 of which rose, and 5 stocks increasing by over 10% [2] - Several innovative drug companies announced they would present research results at the 2025 American Society of Clinical Oncology (ASCO) annual meeting from May 30 to June 3 [2] - The market reacted positively to the collaboration between 3SBio and Pfizer regarding the PD-1/VEGF dual antibody SSGJ-707, enhancing expectations for Chinese innovative drug companies to integrate into the global industry chain [2] Technical Analysis - The Shanghai Composite Index's 5-day moving average has crossed below the 10-day moving average, indicating a bearish trend, with a significant outflow of over 37.5 billion yuan in main funds on May 23 [3] - Despite the bearish signals, the weekly chart shows a bullish arrangement, and the index has not broken below the 20-day moving average, suggesting limited downside potential [3] - The performance of Hunan stocks was generally weak, with only 39 out of 146 stocks rising, although the mechanical manufacturing company Huari Precision led with a 6.34% increase [3] Company Insights - Huari Precision specializes in the research, development, production, and sales of hard alloy CNC cutting tools, reporting earnings per share of 0.47 yuan and a net profit of 29.22 million yuan for Q1 2025, with a year-on-year growth rate of 70% [3] - The company announced a profit distribution plan for its 2024 annual report, proposing a 10-for-4 stock bonus and a cash dividend of 6 yuan (including tax) [3] - The company is actively focusing on new material applications in aerospace and shipbuilding, developing cutting tools for high-temperature alloys, titanium alloys, and carbon fiber reinforced composite materials, with some orders already secured [4]