Core Viewpoint - As of September 4, 2023, Aosaikang's stock price has shown significant volatility, with a year-to-date increase of 82.29% but a recent decline in the last five and twenty trading days [1] Financial Performance - For the first half of 2025, Aosaikang reported a revenue of 1.007 billion yuan, representing a year-on-year growth of 9.20%, and a net profit attributable to shareholders of 160 million yuan, which is a substantial increase of 111.64% [2] - Cumulative cash dividends since Aosaikang's A-share listing amount to 721 million yuan, with 111 million yuan distributed over the past three years [3] Shareholder Structure - As of August 20, 2025, Aosaikang has 18,300 shareholders, a decrease of 1.26% from the previous period, with an average of 50,724 circulating shares per shareholder, an increase of 1.28% [2] - The top ten circulating shareholders include new entrants such as Yongying Pharmaceutical Innovation Mixed Fund and Hong Kong Central Clearing Limited, while some existing shareholders like E Fund Medical Health Mixed Fund have reduced their holdings [3] Market Activity - Aosaikang's stock experienced a trading volume of 1.04 billion yuan on September 4, 2023, with a turnover rate of 0.48% and a total market capitalization of 21.301 billion yuan [1] - The stock has appeared on the "Dragon and Tiger List" twice this year, with the most recent occurrence on July 16 [1]

Quantitative Models and Construction Methods Model Name: Quantitative Market Trend Analysis Framework - **Model Construction Idea**: The model aims to solve the systematic rotation problem of styles by conducting a bottom-up quantitative market trend analysis. It identifies the dominant asset characteristics that represent the future market's mainstream style through a comprehensive comparison of assets[1][5] - **Model Construction Process**: - The model considers five style stages based on the asset's industry lifecycle: external growth, quality growth, quality dividend, value dividend, and bankruptcy value[1][5] - The priority for asset comparison is based on the sequence: growth (g) > return on equity (ROE) > dividend (D)[1][5] - The model uses the spread of asset advantage differences to capture the trend changes of top assets, similar to factor timing[20] - **Model Evaluation**: The framework has shown good explanatory power for past A-share style rotations, achieving an annualized return of 27.25% since 2009[15] Model Backtesting Results - **Quantitative Market Trend Analysis Framework**: - 2009: Asset Comparison Strategy 133%, Wind All A 82%, Excess Return 51%[18] - 2010: Asset Comparison Strategy 7%, Wind All A -7%, Excess Return 14%[18] - 2011: Asset Comparison Strategy -33%, Wind All A -22%, Excess Return -11%[18] - 2012: Asset Comparison Strategy 5%, Wind All A 5%, Excess Return 0%[18] - 2013: Asset Comparison Strategy 41%, Wind All A 5%, Excess Return 36%[18] - 2014: Asset Comparison Strategy 48%, Wind All A 52%, Excess Return -4%[18] - 2015: Asset Comparison Strategy 55%, Wind All A 38%, Excess Return 16%[18] - 2016: Asset Comparison Strategy -14%, Wind All A -13%, Excess Return -1%[18] - 2017: Asset Comparison Strategy 32%, Wind All A 5%, Excess Return 27%[18] - 2018: Asset Comparison Strategy -21%, Wind All A -28%, Excess Return 7%[18] - 2019: Asset Comparison Strategy 41%, Wind All A 33%, Excess Return 8%[18] - 2020: Asset Comparison Strategy 69%, Wind All A 26%, Excess Return 44%[18] - 2021: Asset Comparison Strategy 47%, Wind All A 9%, Excess Return 38%[18] - 2022: Asset Comparison Strategy 44%, Wind All A -19%, Excess Return 62%[18] - 2023: Asset Comparison Strategy 5%, Wind All A -5%, Excess Return 10%[18] - 2024: Asset Comparison Strategy 62%, Wind All A 10%, Excess Return 52%[18] - 2025 (Aug): Asset Comparison Strategy 27%, Wind All A 23%, Excess Return 4%[18] Quantitative Factors and Construction Methods Factor Name: Expected Growth (gf) - **Factor Construction Idea**: The factor focuses on the highest analyst forecasted growth rates, regardless of the cycle stage[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with the highest expected growth rates as forecasted by analysts[6] - The spread of expected growth advantage differences (Δgf) is used to capture the trend changes in top assets[20] - **Factor Evaluation**: The factor has shown significant excess returns since 2019, with notable performance in 2014-2015[34] Factor Name: Actual Growth (g) - **Factor Construction Idea**: The factor focuses on industries with the highest actual growth rates, particularly during transition and growth periods[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with the highest actual growth rates (Δg)[6] - The spread of actual growth advantage differences (Δg) is used to capture the trend changes in top assets[24] - **Factor Evaluation**: The factor has shown significant excess returns in growth-dominant environments[36] Factor Name: Profitability (ROE) - **Factor Construction Idea**: The factor focuses on industries with high ROE and low valuation under the PB-ROE framework, concentrated in mature periods[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with high ROE and low PB-ROE residuals[6] - The spread of ROE advantage differences is used to capture the trend changes in top assets[26] - **Factor Evaluation**: The factor has shown significant excess returns from 2016 to 2020, with weaker performance since 2021[39] Factor Name: Quality Dividend (DP+ROE) - **Factor Construction Idea**: The factor focuses on industries with the highest DP+ROE scores, concentrated in mature periods[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with the highest DP+ROE scores[6] - The spread of DP+ROE advantage differences is used to capture the trend changes in top assets[42] - **Factor Evaluation**: The factor has shown significant excess returns in 2016, 2017, and 2023[43] Factor Name: Value Dividend (DP+BP) - **Factor Construction Idea**: The factor focuses on industries with the highest DP+BP scores, concentrated in mature periods[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with the highest DP+BP scores[6] - The spread of DP+BP advantage differences is used to capture the trend changes in top assets[45] - **Factor Evaluation**: The factor has shown significant excess returns in 2009, 2017, and 2021-2023[46] Factor Name: Bankruptcy Value (PB+SIZE) - **Factor Construction Idea**: The factor focuses on industries with the lowest PB+SIZE scores, concentrated in stagnation and recession periods[6] - **Factor Construction Process**: - The factor is constructed by selecting industries with the lowest PB+SIZE scores[6] - The spread of PB+SIZE advantage differences is used to capture the trend changes in top assets[48] - **Factor Evaluation**: The factor has shown significant excess returns in 2015-2016 and 2021-2023[49] Factor Backtesting Results - **Expected Growth (gf)**: - Cable: 12 stocks, largest weight stock Zhongtian Technology, average market cap 21.791 billion yuan, 3-month performance 49.62%[34] - Cement: 19 stocks, largest weight stock Conch Cement, average market cap 17.929 billion yuan, 3-month performance 12.71%[34] - Glass Fiber: 6 stocks, largest weight stock China Jushi, average market cap 26.657 billion yuan, 3-month performance 63.67%[34] - Rare Earth and Magnetic Materials: 17 stocks, largest weight stock Northern Rare Earth, average market cap 31.018 billion yuan, 3-month performance 98.77%[34] - White Goods III: 10 stocks, largest weight stock Midea Group, average market cap 113.675 billion yuan, 3-month performance -1.21%[34] - **Actual Growth (g)**: - Integrated Circuits: 104 stocks, largest weight stock Cambricon-U, average market cap 45.058 billion yuan, 3-month performance 42.93%[37] - PCB: 38 stocks, largest weight stock Shenghong Technology, average market cap 27.163 billion yuan, 3-month performance 112.10%[37] - Tungsten: 4 stocks, largest weight stock Xiamen Tungsten, average market cap 30.523 billion yuan, 3-month performance 69.26%[37] - Lithium Battery Equipment: 12 stocks, largest weight stock Lead Intelligent, average market cap 11.731 billion yuan, 3-month performance 60.15%[37] - Weapons and Equipment III: 12 stocks, largest weight stock Great Wall Military Industry, average market cap 21.307 billion yuan, 3-month performance 80.22%[37] - **Profitability (ROE)**: - Beer: 7 stocks, largest weight stock Tsingtao Brewery, average market cap 26.758 billion yuan, 3-month performance -3.94%[39] - Liquor: 20 stocks, largest weight stock Kweichow Moutai, average market cap 162.722 billion yuan, 3-month performance 4.12%[39] - Non-dairy Beverages: 7 stocks, largest weight stock Eastroc Beverage, average market cap 32.754 billion yuan, 3-month performance -4.45%[39] - Network Connection and Tower Setup: 19 stocks, largest weight stock Zhongji Xuchuang, average market cap 64.299 billion yuan, 3-month performance 202.29%[39] - Building Decoration III: 28 stocks, largest weight stock Gold Mantis, average market cap 3.436 billion yuan, 3-month performance 4.42%[39] - **Quality Dividend (DP+ROE)**: - Automotive Motor Control: 15

Core Insights - The Chinese biopharmaceutical market has become the second largest globally, with innovative drugs accounting for approximately 30% of global research and development [1] - During the "14th Five-Year Plan" period, China approved 210 innovative drugs and 269 innovative medical devices, showing a trend of accelerated growth [1] - The total amount of innovative drug licensing from China reached nearly $66 billion in the first half of 2025, indicating increasing global recognition of Chinese innovative drugs [1] R&D Investment - In the chemical preparation sector, the top ten pharmaceutical companies spent a total of 17.636 billion yuan on R&D in the first half of 2025, a year-on-year increase of 12.66% [2] - BeiGene led the sector with R&D expenses of 7.278 billion yuan, accounting for 41.54% of its total revenue, marking a 9.8% increase year-on-year [2] - Other companies like Hengrui Medicine and Fosun Pharma also invested over 1 billion yuan in R&D, reflecting a strong emphasis on innovation [1][2] Oncology Drug Development - Oncology remains a core focus for Chinese innovative pharmaceutical companies, with significant investments in R&D from firms like BeiGene and Hengrui Medicine [3] - BeiGene is developing several promising products in the hematological oncology space, including the BTK inhibitor Bruton and two late-stage products with global potential [3] - The global oncology drug market is expected to reach $328.6 billion by 2026, with China's market projected to grow to 376 billion yuan by 2026 and further to 755.1 billion yuan by 2031, reflecting a compound annual growth rate of 16.0% from 2024 to 2031 [4] Market Dynamics - The demand for oncology products is driving revenue for many pharmaceutical companies, with Hansoh Pharmaceutical reporting that its innovative oncology product Ameluz generated approximately 4.531 billion yuan in revenue, accounting for 60.9% of total revenue [5] - The industry is entering a phase of diverse development, with significant opportunities in ADC (antibody-drug conjugates) and other innovative therapies [5] - The five-year survival rate for cancer patients in China has improved from 40.5% in 2018 to 43.7% in 2022, indicating progress in cancer prevention and treatment [5] Technological Advancements - AI and digital technologies are reshaping the pharmaceutical R&D landscape, with new guidelines from the FDA aimed at integrating AI into preclinical research [7] - The competition in the oncology sector is intensifying, with a significant number of similar products in development, particularly in the dual-antibody and single-antibody markets [8] - The industry is focusing on creating a closed-loop research ecosystem that connects clinical needs with laboratory innovations to accelerate the translation of research into clinical applications [9]

Core Viewpoint - Lianhuan Pharmaceutical's stock has experienced significant fluctuations, with a year-to-date increase of 119.12%, but a recent decline in the last five trading days by 5.99% [1][2]. Group 1: Stock Performance - As of September 3, Lianhuan Pharmaceutical's stock price was 21.52 CNY per share, with a market capitalization of 6.143 billion CNY [1]. - The stock has seen a trading volume of 289 million CNY and a turnover rate of 4.61% [1]. - The company has appeared on the "Dragon and Tiger List" nine times this year, with the most recent appearance on August 21, where it recorded a net buy of -44.74 million CNY [1]. Group 2: Financial Performance - For the first half of 2025, Lianhuan Pharmaceutical reported a revenue of 1.285 billion CNY, representing a year-on-year growth of 14.12% [2]. - The net profit attributable to shareholders was -40.03 million CNY, a decrease of 163.65% compared to the previous period [2]. Group 3: Shareholder Information - As of June 30, 2025, the number of shareholders was 30,100, a decrease of 0.72% from the previous period [2]. - The average number of circulating shares per shareholder increased by 0.72% to 9,485 shares [2]. - The company has distributed a total of 343 million CNY in dividends since its A-share listing, with 111 million CNY distributed in the last three years [3].

Company Overview - Huadong Medicine Co., Ltd. is located in Hangzhou, Zhejiang Province, and was established on March 31, 1993, with its listing date on January 27, 2000. The company primarily engages in the production and sales of various pharmaceutical products, including Bailing capsules, New Saisping (oral liquid, soft capsules), Palisou, and Carboplatin, as well as pharmaceutical wholesale [1][2]. Financial Performance - As of June 30, 2025, Huadong Medicine achieved a revenue of 21.675 billion yuan, representing a year-on-year growth of 3.39%. The net profit attributable to shareholders was 1.815 billion yuan, reflecting a year-on-year increase of 7.01% [2]. - The company has cumulatively distributed dividends of 8.259 billion yuan since its A-share listing, with 3.158 billion yuan distributed over the past three years [3]. Stock Performance - On September 3, Huadong Medicine's stock price increased by 2.03%, reaching 45.73 yuan per share, with a trading volume of 159 million yuan and a turnover rate of 0.20%. The total market capitalization stood at 80.214 billion yuan [1]. - Year-to-date, the stock price has risen by 34.42%, with a 3.30% increase over the last five trading days, a 3.93% increase over the last 20 days, and a 5.37% increase over the last 60 days [1]. Shareholder Structure - As of June 30, 2025, the number of Huadong Medicine's shareholders was 69,800, a decrease of 7.91% from the previous period. The average number of circulating shares per person increased by 8.59% to 25,083 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 39.8384 million shares, a decrease of 6.2825 million shares from the previous period. Other notable shareholders include China Europe Medical Health Mixed A and Huatai-PineBridge CSI 300 ETF, with varying changes in their holdings [3].

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" and the rating has been maintained [1] Core Insights - The pharmaceutical and biotechnology industry index increased by 0.39% during the reporting period, ranking 26th among 31 primary industries, underperforming the CSI 300 index which rose by 7.01% [4][14] - The industry shows resilience despite a slight decline in overall revenue and net profit for A-share pharmaceutical companies in the first half of the year, with stable gross profit margins [6] - The CXO sector has returned to high prosperity with significant growth in performance, while the chemical preparation sector shows a mixed performance [6] - The report highlights the approval of several innovative drugs, including Novartis' "Acrux" for IgA nephropathy and the first oral HER2 inhibitor "Zongertinib" by Boehringer Ingelheim [5][41] Industry Review - The pharmaceutical and biotechnology industry PE (TTM, excluding negative values) is at 31.41x, slightly down from 31.38x in the previous period, indicating a valuation below the average [20] - The top three sub-industries by PE are vaccines (56.18x), hospitals (42.24x), and medical devices (40.66x), while pharmaceutical circulation has the lowest valuation at 14.06x [20] - In the reporting period, 29 listed companies in the pharmaceutical and biotechnology sector experienced a net reduction in shareholder holdings amounting to 1 billion CNY [4] Important Industry News - The CDE released a draft guideline for single-arm clinical trials to support the regular approval of anti-tumor drugs [25] - Novartis' IgA nephropathy drug "Acrux" received NMPA approval, marking it as the first of its kind in China [28] - The approval of the new generation ALK inhibitor "Dirocitinib" by Xuan Bamboo Biotech for treating ALK-positive non-small cell lung cancer [36] - The approval of the ADC "Datopotamab deruxtecan" for treating HR-positive, HER2-negative breast cancer [39] Investment Recommendations - The report suggests focusing on investment opportunities in the chemical preparation sector, particularly innovative drugs, and the CXO sector due to their clear long-term growth logic [6]

Investment Rating - The report maintains a strong buy rating for the pharmaceutical sector, indicating a bullish outlook for the industry [3]. Core Insights - The pharmaceutical sector is expected to experience a broad rally, driven by innovative drugs leading the charge. The sector index showed a notable upward trend in the first half of 2025, particularly in April, with a valuation premium of 275.19%, significantly above historical averages [4][18]. - Public funds are increasingly favoring pharmaceutical stocks, particularly in innovative drugs and medical devices, supported by stable growth in basic medical insurance funds [4][22]. Section Summaries 1. Market Performance - The pharmaceutical sector has shown a strong upward trend since Q3 2024, outperforming the broader market indices. The sector index rose by 24.51% from the beginning of 2025 to August 29, 2025, surpassing the Shanghai and Shenzhen 300 index by 11.07 percentage points [11][12]. - Medical services and chemical raw materials have performed particularly well, with medical services up by 80.24% and chemical raw materials up by 53.67% as of August 28, 2025 [17]. 2. Industry Overview - The pharmaceutical manufacturing industry has shown resilience, with stable revenue growth and a healthy operating environment for basic medical insurance funds. The overall revenue of the pharmaceutical manufacturing industry has experienced fluctuations but is on a recovery path [31][35]. - The innovative drug business development (BD) has seen explosive growth, with China becoming a hotspot for multinational corporations (MNCs) seeking partnerships. The total transaction amount for BD in 2024 reached a record high of $640.8 billion, with significant contributions from overseas transactions [36][38]. 3. Subsector Analysis - Innovative drugs are leading the growth, with 21 A-share innovative drug companies reporting a revenue of 28.69 billion yuan in the first half of 2025, a year-on-year increase of 42%. The net profit loss has narrowed significantly, indicating a positive trend in profitability [56]. - The medical device sector is also expected to see a turning point in the second half of 2025, with a 62.75% year-on-year growth in the overall bidding market for medical devices in the first half of 2025, exceeding 80 billion yuan [52].

Group 1 - Weisheng Information won four projects in August with a total amount of 85.5377 million yuan, accounting for 3.12% of the company's total revenue for 2024 [1] - Longqi Technology's shareholder plans to reduce its stake by up to 4.09%, equating to a maximum of 19.1916 million shares [1] - Guojin Modern's subsidiary received a drug registration certificate for injectable Nicardipine, used for treating unstable angina [3][4] Group 2 - SAIC Motor reported a total vehicle sales of 363,400 units in August, a year-on-year increase of 41.04%, with new energy vehicle sales reaching 129,800 units, up 49.89% [5] - Kuka Home plans to invest 1.124 billion yuan to build a self-owned base in Indonesia, aiming to enhance its international strategy [6] - Samsung Medical's subsidiary signed a contract for an intelligent meter project in Egypt worth 58.8 million USD, approximately 419 million yuan [8] Group 3 - North Vehicle Blue Valley's subsidiary reported a total production of 10,587 units in August, a year-on-year decrease of 15.13%, while sales increased by 3.47% [12] - Xianghe Industrial signed contracts worth 400 million yuan for railway fastener system components [13] - Hengrui Medicine's HRS9531 injection has received acceptance for its marketing authorization application [14] Group 4 - Hualu Hengsheng resumed normal production after completing maintenance on production facilities [16] - Shanghai Pharmaceuticals' hydrochloride verapamil injection passed the consistency evaluation for generic drugs [18] - Shanghai Construction received approval for debt financing tools with a registration period of two years [20] Group 5 - Kangli Elevator terminated the sale of its wholly-owned subsidiary due to the buyer's failure to obtain necessary approvals [21] - Times Wan Heng appointed Li Zhizhong as the new deputy general manager [22] - Hanma Technology reported a total truck sales of 1,051 units in August, a year-on-year increase of 58.05% [24] Group 6 - Wenzhou Hongfeng's subsidiary received a utility model patent certificate for a servo adjustment device [26] - Yibin Technology received a project designation from a domestic new energy vehicle company, with an estimated total sales of 243 million yuan over five years [28] - Star Ring Technology's H-share issuance application was accepted by the China Securities Regulatory Commission [30] Group 7 - Microchip Bio's vice president resigned for personal reasons [31] - Zhongxin Co. announced the resignation of a non-independent director due to personal reasons [32] - Changcheng Military Industry's vice chairman resigned due to retirement [35] Group 8 - Jiukang Bio received four invention patent certificates related to detection reagents [36] - Meino Bio's subsidiary changed its registered address [37] - Kuangda Technology announced a potential change in control due to a share transfer [38] Group 9 - China Rare Earth confirmed no undisclosed significant matters amid stock price fluctuations [72]

Company Overview - Angli康 is a pharmaceutical company based in Shengzhou, Zhejiang Province, established on December 30, 2001, and listed on October 23, 2018. The company specializes in the research, production, and sales of chemical raw materials and formulations [1]. - The main business revenue composition includes formulations (43.46%), raw materials (39.82%), specialty intermediates (12.44%), others (3.72%), and pharmaceutical excipients (0.56%) [1]. Stock Performance - As of September 1, Angli康's stock price increased by 2.00% to 50.41 CNY per share, with a trading volume of 215 million CNY and a turnover rate of 2.34%, resulting in a total market capitalization of 10.169 billion CNY [1]. - Year-to-date, Angli康's stock price has risen by 286.05%, but it has seen a decline of 9.37% over the last five trading days and 22.09% over the last 20 days. In the last 60 days, the stock price increased by 134.92% [1]. Financial Performance - For the first half of 2025, Angli康 reported a revenue of 724 million CNY, a year-on-year decrease of 14.52%, and a net profit attributable to shareholders of 65.925 million CNY, down 3.19% year-on-year [2]. - Since its A-share listing, Angli康 has distributed a total of 341 million CNY in dividends, with 108 million CNY distributed over the past three years [3]. Shareholder Structure - As of June 30, 2025, Angli康 had 18,500 shareholders, an increase of 50.49% from the previous period. The average number of circulating shares per person decreased by 33.55% to 10,037 shares [2]. - Notable new institutional shareholders include China Europe Medical Health Mixed A, holding 6.4373 million shares, and Guangfa Technology Innovation Mixed A, holding 6.1606 million shares [3].

Core Viewpoint - Tonghua Jinma's stock price has shown a significant increase of 54.01% year-to-date, despite a recent decline in the last five trading days [1][2]. Company Overview - Tonghua Jinma Pharmaceutical Group Co., Ltd. is located in Tonghua City, Jilin Province, and was established on February 26, 1993. It was listed on April 30, 1997. The company focuses on the research, production, and sales of pharmaceuticals, with 100% of its revenue derived from the pharmaceutical industry [1]. Financial Performance - For the first half of 2025, Tonghua Jinma achieved an operating income of 650 million yuan, representing a year-on-year growth of 0.12%. The net profit attributable to shareholders was 16.80 million yuan, showing a significant increase of 34.77% compared to the previous year [2]. Stock Performance - As of September 1, the stock price was 24.18 yuan per share, with a market capitalization of 23.37 billion yuan. The trading volume was 230 million yuan, with a turnover rate of 0.99% [1]. - The stock has experienced a net outflow of 6.69 million yuan from main funds, with large orders accounting for 30.51% of total buying and 29.38% of total selling [1]. Shareholder Information - As of June 30, 2025, the number of shareholders increased to 39,500, a rise of 6.54%. The average number of circulating shares per person decreased by 6.13% to 24,457 shares [2]. - The top ten circulating shareholders include notable entities such as Innovation Drug and Southern CSI 1000 ETF, with changes in their holdings noted [3]. Dividend Information - Since its A-share listing, Tonghua Jinma has distributed a total of 210 million yuan in dividends, with no dividends paid in the last three years [3].