Investment Rating - The report does not explicitly state an investment rating for the industry [1] Core Insights - The pharmaceutical and biotechnology sector experienced a decline of 2.4% from November 3 to November 7, 2025, underperforming compared to the Wind All A index (0.63%) and the CSI 300 index (0.82%) [2][7] - The rise in flu activity was noted, with the percentage of flu-like illness (ILI) cases reported at 4.7% in the week of October 27 to November 2, 2025, indicating an increase compared to previous weeks and years [2][10] - The final overall survival (OS) results from the HARMONi-A study of Ivosidenib combined with chemotherapy for EGFR-mutant non-small cell lung cancer showed a significant improvement in OS, with a median OS of 16.8 months versus 14.1 months for the control group [2][10] Weekly Market Review - The pharmaceutical and biotechnology sector's performance was down 2.4%, with notable declines in medical research outsourcing (-4.93%), chemical preparations (-4.42%), and other biological products (-4.33%) [7][8] - The leading gainers included Hezhi China (61.1%), Wanze Shares (30.3%), and Fuxiang Pharmaceutical (23.3%), while Changshan Pharmaceutical (-20%), Yifang Bio-U (-17.8%), and Guangshengtang (-15.3%) were the biggest losers [10] Industry News and Key Company Announcements - On November 7, 2025, the final OS analysis of the HARMONi-A study was presented, showing significant results for Ivosidenib in combination with chemotherapy [10][12] - According to data from the Chinese Center for Disease Control, flu-like illness percentages in southern provinces increased to 4.6%, while northern provinces reported 5.1%, both higher than the previous week [10][12] - BeiGene reported a total revenue of $1.412 billion for Q3 2025, a 41% year-on-year increase, driven by a 51% growth in global sales of its product [12][14] - Metsera announced a merger agreement with Pfizer, with an estimated total transaction value of approximately $9 billion [12][14]

Core Viewpoint - Yinosh's stock price has shown a significant increase this year, with a notable rise in recent trading days, indicating positive market sentiment towards the company [1]. Group 1: Stock Performance - As of November 10, Yinosh's stock price increased by 2.04%, reaching 45.42 CNY per share, with a trading volume of 33.84 million CNY and a turnover rate of 0.83% [1]. - Year-to-date, Yinosh's stock price has risen by 29.07%, with a 1.66% increase over the last five trading days, 4.73% over the last 20 days, and 7.17% over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, Yinosh reported a revenue of 571 million CNY, reflecting a year-on-year decrease of 35.33%, and a net profit attributable to shareholders of -14.79 million CNY, a decline of 111.14% compared to the previous year [2]. Group 3: Shareholder Information - As of September 30, 2025, Yinosh had 4,849 shareholders, a decrease of 9.97% from the previous period, while the average number of circulating shares per person increased by 257.28% to 18,703 shares [2]. - The company has distributed a total of 45.11 million CNY in dividends since its A-share listing [3]. - New institutional shareholders include Huatai-PineBridge Healthcare Mixed Fund and Huaxia Stable Growth Mixed Fund, while several funds have exited the top ten circulating shareholders list [3]. Group 4: Company Overview - Yinosh, established on May 12, 2010, is located in the China (Shanghai) Pilot Free Trade Zone and specializes in providing non-clinical research services as part of its comprehensive R&D services (CRO) [1]. - The company's revenue composition is primarily from non-clinical services (96.31%), followed by clinical services (3.42%) and other services (0.27%) [1].

Core Insights - The stock price of Baicheng Pharmaceutical increased by 2.17% on November 10, reaching 53.66 CNY per share, with a total market capitalization of 5.861 billion CNY [1] - The company has experienced a year-to-date stock price increase of 41.43%, but has seen declines of 22.22% over the last five trading days, 8.35% over the last 20 days, and 7.18% over the last 60 days [1] - Baicheng Pharmaceutical's revenue for the first nine months of 2025 was 510 million CNY, a year-on-year decrease of 29.33%, with a net profit of 6.1242 million CNY, down 95.68% year-on-year [2] Company Overview - Baicheng Pharmaceutical, established on June 28, 2011, and listed on December 20, 2021, is located in Hangzhou, Zhejiang Province [2] - The company's main business involves providing drug research and development services and technology transfer to pharmaceutical companies and R&D investment firms [2] - Revenue composition includes: 32.19% from technology transfer, 24.50% from clinical services, 23.56% from preclinical research, 10.28% from commercial production, 4.63% from other services, 3.50% from CDMO, and 1.34% from profit sharing [2] Shareholder and Dividend Information - As of September 30, 2025, the number of shareholders was 10,100, a decrease of 15.05% from the previous period, with an average of 8,242 circulating shares per shareholder, an increase of 18.15% [2] - The company has distributed a total of 184 million CNY in dividends since its A-share listing, with 119 million CNY distributed over the last three years [3] - Notably, the top ten circulating shareholders saw the exit of the Rongtong Health Industry Flexible Allocation Mixed A/B fund from the list [3]

Core Viewpoint - Bid Pharma's stock price has shown a significant increase of 50.29% year-to-date, with a current market capitalization of 6.597 billion yuan, indicating strong investor interest and performance in the pharmaceutical sector [1][2]. Financial Performance - For the period from January to September 2025, Bid Pharma achieved a revenue of 979 million yuan, representing a year-on-year growth of 20.67%. The net profit attributable to shareholders was 120 million yuan, reflecting a substantial increase of 42.79% compared to the previous year [2]. - The company has distributed a total of 258 million yuan in dividends since its A-share listing [3]. Stockholder Information - As of September 30, 2025, the number of shareholders for Bid Pharma decreased by 7.64% to 3,493, while the average number of circulating shares per person increased by 8.27% to 12,377 shares [2]. - The top ten circulating shareholders include notable institutional investors, with China Europe Medical Health Mixed A being the second-largest shareholder, increasing its holdings by 20.07% [3]. Market Activity - On November 10, Bid Pharma's stock rose by 2.07%, trading at 72.59 yuan per share with a total transaction volume of 23.1378 million yuan. The stock has experienced a slight decline of 1.71% over the past five trading days but has shown a positive trend over longer periods [1].

Core Points - The stock price of Sunshine Nuohe has decreased by 2.00% to 55.36 CNY per share as of November 7, with a total market capitalization of 6.2 billion CNY [1] - The company has experienced a year-to-date stock price increase of 47.47%, but has seen declines of 5.77% over the last five trading days, 9.53% over the last twenty days, and 11.25% over the last sixty days [1] - Sunshine Nuohe's main business involves the development of generic drugs, consistency evaluation, and innovative drug development, with 99.91% of its revenue coming from CRO services [1] Financial Performance - For the period from January to September 2025, Sunshine Nuohe reported a revenue of 856 million CNY, a year-on-year decrease of 6.65%, and a net profit attributable to shareholders of 163 million CNY, down 21.38% year-on-year [2] - The company has distributed a total of 105 million CNY in dividends since its A-share listing, with 84.29 million CNY distributed over the past three years [3] Shareholder Information - As of September 30, 2025, the number of shareholders has increased by 6.76% to 9,204, while the average number of tradable shares per person has decreased by 6.33% to 12,168 shares [2] - The top ten circulating shareholders include notable entities such as Rongtong Health Industry Flexible Allocation Mixed A/B and Hong Kong Central Clearing Limited, with changes in their holdings noted [3]

Core Points - The stock price of Norska dropped by 2.14% on November 7, trading at 63.21 CNY per share with a market capitalization of 6.105 billion CNY [1] - Norska's stock has increased by 26.85% year-to-date, but has seen a decline of 7.84% over the last five trading days [1] - The company has been listed on the stock market since August 2, 2022, and specializes in clinical trial operation services and related fields [1] Financial Performance - For the period from January to September 2025, Norska reported a revenue of 607 million CNY, reflecting a year-on-year growth of 8.09% [2] - The net profit attributable to shareholders for the same period was 95.5668 million CNY, marking a year-on-year increase of 13.21% [2] - Cumulative cash dividends since the A-share listing amount to 49.4969 million CNY [2] Shareholder Information - As of September 30, 2025, the number of shareholders decreased by 16.18% to 8,734 [2] - The average number of circulating shares per shareholder increased by 19.30% to 6,545 shares [2] - Notable changes in institutional holdings include the entry of Nuoan Pioneer Mixed A as the sixth largest shareholder with 1.6796 million shares [2]

Core Insights - The medical ETF (159828) has seen an inflow of 10 million shares today, with a net inflow of 2 million shares, indicating strong demand for medical assets [1] - AI healthcare is characterized by advanced technologies such as machine learning, natural language processing, and computer vision, which analyze complex medical data to assist clinical decision-making and optimize treatment processes [1] - The AI healthcare industry in China was valued at 97.3 billion yuan in 2023 and is projected to reach 159.8 billion yuan by 2028, with a compound annual growth rate (CAGR) of 10.5% from 2022 to 2028 [1] - The AI medical imaging and AI pharmaceuticals segments are experiencing rapid growth, supported by favorable policies that accelerate the implementation of AI healthcare technologies [1] - The medical ETF (159828) tracks the CSI Medical Index (399989), which selects listed companies in the pharmaceutical and healthcare sectors, primarily covering medical devices, medical services, and medical research outsourcing [1] - The index components are skewed towards small and mid-cap stocks, which exhibit higher growth potential and volatility [1]

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical sector, specifically recommending the innovative drug and medical device industry chain [5][10]. Core Insights - The pharmaceutical sector shows a positive recovery trend in Q3 2025, with overall revenue growth of 0.6% year-on-year and a net profit increase of 0.3% year-on-year. This indicates a return to growth after previous declines [6][13]. - Specific segments such as medical devices and medical research outsourcing are experiencing significant growth, with revenue and net profit growth rates of 10.6% and 0.6% for medical devices, and 10.9% and 47.9% for medical research outsourcing, respectively [13][14]. - The report highlights a continued recommendation for specific A-share and H-share stocks, including 恒瑞医药 (Hengrui Medicine), 科伦药业 (Kelun Pharmaceutical), and others, indicating strong potential for investment [7][10]. Summary by Sections 1. Continued Recommendation for Innovative Drug and Medical Device Industry Chain - The report continues to recommend the innovative drug and medical device industry chain, maintaining "Overweight" ratings for several A-share stocks including 恒瑞医药, 科伦药业, and others, and H-share stocks like 翰森制药 and 三生制药 [7][10]. 2. Recovery Trend in Pharmaceutical Sector Q3 2025 - The pharmaceutical sector's overall revenue increased by 0.6% year-on-year in Q3 2025, with net profit rising by 0.3%. Medical devices and medical research outsourcing are leading this recovery with notable growth rates [13][14]. 3. Performance of Pharmaceutical Sector in October 2025 - In October 2025, the pharmaceutical sector underperformed compared to the broader market, with the SW pharmaceutical index declining by 1.8% while the Shanghai Composite Index rose by 1.9% [15][26]. 4. Performance of Hong Kong and US Pharmaceutical Sectors - The Hong Kong pharmaceutical sector also underperformed, with the Hang Seng Healthcare index down by 11.1%, while the US pharmaceutical sector showed strength with a 3.5% increase in the S&P healthcare index [26][27]. 5. Valuation and Premium Levels - As of October 31, 2025, the pharmaceutical sector's premium level relative to all A-shares is at a normal level, with a current relative premium rate of 76.7% [25][28].

Core Viewpoint - 康龙化成 is experiencing a slight increase in stock price and has a significant market capitalization, benefiting from various industry trends including digital transformation and AI integration in clinical services [1][2]. Company Overview - 康龙化成 (Beijing) New Drug Technology Co., Ltd. specializes in integrated drug research, development, and production services, covering the entire process from drug discovery to development [2][7]. - The company's main revenue sources include laboratory services (60.43%), CMC (small molecule CDMO) services (21.58%), clinical research services (14.58%), and other services [7]. Financial Performance - For the period from January to September 2025, 康龙化成 achieved a revenue of 10.086 billion yuan, representing a year-on-year growth of 14.38%, while the net profit attributable to shareholders decreased by 19.76% to 1.141 billion yuan [8]. - The company has distributed a total of 1.794 billion yuan in dividends since its A-share listing, with 1.007 billion yuan distributed over the past three years [9]. Market Position and Trends - 康龙化成 is positioned as a leader in the CRO (Contract Research Organization) sector, particularly in small molecule drug research services, and ranks second in drug discovery in China [2][3]. - The company is benefiting from the depreciation of the RMB, with overseas revenue accounting for 84.95% of total revenue [3]. Digital Transformation and AI Integration - 康龙化成 has made significant progress in digital and intelligent construction within its clinical services, establishing a "Digital Innovation Technology Department" to enhance efficiency through automation and machine learning [3]. - The acquisition of Shanghai Jiying is expected to further promote the company's digital transformation in clinical services, although it may face integration and management challenges [2][3].

Investment Rating - The report maintains a focus on innovative pharmaceuticals and medical devices, highlighting key A-share and H-share targets for investment [6][32]. Core Insights - The pharmaceutical sector showed a good recovery in Q3 2025, with overall revenue increasing by 0.6% year-on-year and net profit attributable to shareholders rising by 0.3% year-on-year [11][32]. - Medical equipment benefited from procurement recovery, with Q3 revenue and net profit growth of 10.6% and 0.6% year-on-year, respectively [11][32]. - Medical R&D outsourcing continued to achieve high growth, with Q3 revenue and net profit growth of 10.9% and 47.9% year-on-year [11][32]. - The offline pharmacy sector improved, with Q3 revenue and net profit growth of 2.1% and 37.8% year-on-year [11][32]. Summary by Sections 1. Focus on Innovative Pharmaceuticals and Medical Devices - Key A-share targets include Jiangsu Heng Rui Medicine, Sichuan Kelun Pharmaceutical, Huadong Medicine, Changchun High-tech Industry, Jiangsu Nhwa Pharmaceutical, WuXi AppTec, Hangzhou Tigermed Consulting, Lepu Medical, APT Medical, and related target Guangdong Zhongsheng Pharmaceutical [6][32]. - Key H-share targets include Hansoh Pharmaceutical Group, 3SBio, Akeso, and related target Innovent Biologics, WuXi AppTec [6][32]. 2. Q3 2025 Pharmaceutical Sector Recovery - The pharmaceutical sector's overall revenue increased by 0.6% year-on-year, with net profit attributable to shareholders up by 0.3% year-on-year [11][32]. - Specific segments such as medical devices and medical R&D outsourcing showed significant growth [11][32]. 3. October 2025 Market Performance - In October 2025, the pharmaceutical sector underperformed the market, with the SW Pharmaceutical and Biological index falling by 1.8% while the SHCOMP rose by 1.9% [14][32]. - The relative premium of the pharmaceutical sector compared to all A-shares was at a normal level, with a current relative premium rate of 76.7% [23][32]. 4. Hong Kong and U.S. Market Performance - The Hong Kong pharmaceutical sector underperformed, with the Hang Seng Healthcare index falling by 11.1% [24][32]. - In contrast, the U.S. S&P 500 healthcare sector rose by 3.5% [24][32].