Group 1 - The pharmaceutical sector has experienced a nearly five-year correction since a strong rally from 2019 to 2020, but investment is gradually warming up this year driven by innovative drug concepts [1] - Wan Minyuan, a fund manager with a medical background, believes that the most difficult times for the pharmaceutical industry may have passed, with a relatively optimistic outlook on the sector's performance [1][4] - The investment strategy of Wan Minyuan emphasizes safety and a contrarian approach, focusing on buying when the market is less interested and selling when it is more enthusiastic [2][3] Group 2 - Wan Minyuan's investment philosophy is rooted in maintaining a high win rate by ensuring correct decisions outweigh incorrect ones, which is crucial for sustainable and predictable returns [2][3] - The pharmaceutical sector is expected to see improvements in 2025 due to the gradual resolution of multiple factors that have constrained its performance, including favorable policy changes [4][5] - Key drivers for long-term growth in the pharmaceutical industry remain unchanged, such as population aging, changes in disease patterns, and the supply of innovative technologies [5] Group 3 - Wan Minyuan focuses on companies with stable operations and emphasizes the importance of prudent financial management, avoiding overly aggressive accounting practices [3][5] - The investment strategy includes a long holding period for core positions, with a disciplined approach to selling based on specific criteria such as valuation bubbles and significant deviations from expected company performance [5][6] - Wan Minyuan identifies three main investment opportunities in the pharmaceutical sector: innovative drugs and medical devices, recovery in pharmaceutical consumption, and low price-to-book ratio assets [6][7] Group 4 - The interest in innovative drugs is growing, with an increase in upfront payments for licensing deals, although A-share market valuations for innovative drugs are currently high [7] - Wan Minyuan is also expanding investment horizons beyond the pharmaceutical sector, looking at domestic demand and technology sectors, particularly in undervalued assets in the Hong Kong market [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The retail pharmacy sector has passed its low point and is gradually entering an industry consolidation phase, with performance recovery underway. The pressure on small and medium-sized pharmacies is increasing, leading to a rise in concentration among leading enterprises, supported by potential growth from policy recovery [4][10] - The pharmaceutical distribution market is expanding, and industry concentration is expected to increase, with a focus on improving the operational quality of leading companies. The implementation of the two-invoice system is shortening the drug distribution chain, benefiting leading enterprises with upstream and downstream resource advantages [4][10] Summary by Sections Retail Pharmacies - The number of retail pharmacies in China showed negative growth in Q4 2024, marking a turning point as the industry enters a "market consolidation phase." The number of closed pharmacies in 2024 was 6,778 in Q1, 8,791 in Q2, 9,545 in Q3, and 14,114 in Q4, with net additions of 9,257, 6,322, 2,847, and -3,395 respectively [10][11] - The performance of retail pharmacies is expected to stabilize and recover due to improved compliance operations and refined management practices, alongside seasonal disease outbreaks and new pricing policies [4][11] - Policies supporting the inclusion of retail pharmacies in outpatient management are expected to enhance their role in the healthcare system, facilitating prescription flow and increasing foot traffic to physical pharmacies [4][10][11] Pharmaceutical Distribution - The pharmaceutical distribution market is expected to grow, with leading companies benefiting from scale and operational quality improvements. The "4+N" competitive landscape is deepening, and the market size is expanding due to increased shares of retail pharmacies and grassroots medical terminals [4][10] - The use of AI technology and CSO services is expected to enhance the competitive edge of leading companies, reinforcing the trend of "the strong getting stronger" [4][10] Recommended and Beneficiary Stocks - Recommended stocks include Yifeng Pharmacy, Lao Bai Xing, and Jian Zhi Jia, while beneficiary stocks include Da Shen Lin, Yi Xin Tang, and Shu Yu Ping Min [4][15]

Core Viewpoint - MSCI announced its quarterly index adjustments for May 2025, adding 30 stocks to its global standard index, including five A-shares: Chipone Technology, Baillie Gifford, Huatai Medical, Light Media, and Haizhi Science [1][4][7]. Group 1: MSCI Index Adjustments - MSCI's May adjustments included the addition of 30 stocks and the removal of 61 stocks from its global standard index [6]. - The largest new additions to the MSCI global standard index by market capitalization include Ryanair Holdings, Sigma Healthcare, and International Airlines Group [6]. - The MSCI Emerging Markets Index added three major stocks: ADNOC Gas, Dubai Electricity & Water Authority, and Baillie Gifford [6]. Group 2: A-Share Specifics - In the MSCI China A-share index, five stocks were added: Chipone Technology, Baillie Gifford, Huatai Medical, Light Media, and Haizhi Science, while 15 stocks were removed, including Hisense Home Appliances and FAW Jiefang [7][9]. - Additionally, one Hong Kong stock, Chongqing Rural Commercial Bank, was added, while Shanghai Pharmaceuticals and COSCO Shipping Energy were removed [8]. Group 3: Market Reactions - The U.S. stock market showed mixed results, with the Dow Jones down 0.64%, the S&P 500 up 0.72%, and the Nasdaq up 1.61%, driven by strong performance in chip stocks [2][12]. - Nvidia's stock surged by 5.63%, contributing significantly to the Nasdaq's rise, while AMD also saw a 4.01% increase [2][14]. - AMD announced a strategic partnership with Humain worth $10 billion to advance global artificial intelligence, indicating strong growth potential in the semiconductor sector [15].

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" (maintained) [1] Core Insights - The report emphasizes the focus on innovative drugs and the recovery of consumer demand as key drivers for investment in the pharmaceutical sector [3] - The TCE (T-cell Engager) solid tumor pipeline is highlighted, with Janux and Vir making significant progress in their development plans [5][13] - The pharmaceutical sector saw a 1.01% increase in the second week of May, underperforming the CSI 300 index by 1 percentage point, ranking 26th among 31 sub-industries [6][15] Summary by Sections TCE Solid Tumor Pipeline Update - Janux announced that JANX007 (PSMA/CD3) will enter the 1b expansion trial, targeting taxane-naive patients, marking a significant step for TCE in solid tumors [5][13] - Vir has registered VIR-5525 (EGFR/CD3) for a first-in-human trial, expected to start this month, focusing on EGFR-expressing NSCLC [5][13] Market Performance - In the second week of May, the pharmaceutical sector increased by 1.01%, with the medical device sector showing the highest growth at 1.98% [6][19] - The report notes that the offline pharmacy sector experienced the largest decline, dropping by 1.65% [19] Recommended and Benefiting Stocks - Recommended stocks in the pharmaceutical and biotechnology sector include: - Innovative drugs: Zai Lab, Innovent Biologics, and others [7] - Traditional Chinese medicine: Dong-E E-Jiao, Jiangzhong Pharmaceutical, and others [7] - Medical devices: Mindray Medical, and others [7]

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" (maintained) [1] Core Insights - The report emphasizes the focus on innovative drugs and the recovery of consumer demand as key drivers for investment in the pharmaceutical sector [3] - The TCE (T-cell Engager) solid tumor pipeline is highlighted, with Janux and Vir making significant progress in their development plans [5][13] - The pharmaceutical sector saw a 1.01% increase in the second week of May, underperforming the CSI 300 index by 1 percentage point, ranking 26th among 31 sub-industries [6][15] Summary by Sections TCE Solid Tumor Pipeline Update - Janux announced that JANX007 (PSMA/CD3) will enter the 1b expansion trial, targeting taxane-naive patients, marking a significant step for TCE in frontline indications [5][13] - Vir has registered VIR-5525 (EGFR/CD3) for a first-in-human trial, expected to start this month, focusing on EGFR-expressing NSCLC [5][13] Market Performance - In the second week of May, the pharmaceutical sector increased by 1.01%, with the medical device sector showing the highest growth at 1.98% [6][19] - The report notes that the offline pharmacy sector experienced the largest decline, dropping by 1.65% [19] Recommended and Benefiting Stocks - Recommended stocks in the pharmaceutical and biotechnology sector include: - Innovative drugs: Zai Lab, Innovent Biologics, Kelun-Biotech, Yifan Pharmaceutical, and others [7] - Traditional Chinese medicine: Dong-E E-Jiao, Jiangzhong Pharmaceutical, and others [7] - Medical devices: Mindray, Aohua Endoscopy, and others [7]

核心观点 4 月29 日，公司发布2024 年年度业绩报告，实现营业收入223.58亿元，同比-0.36%，实现归母净利润 5.19 亿元，同比下降44.13%，实现扣非归母净利润4.96 亿元，同比下降41.18%，实现基本每股收益0.68 元，业绩低于我们预期。展望2025 年，公司门店结构持续优化，火炬项目稳步落地，零售板块毛利率 有望持续改善，叠加公司持续落地降本增效举措，我们期待公司利润增速加速恢复。 事件 公司发布2024 年年度业绩报告，业绩低于我们预期4 月29 日，公司发布2024 年年报及2025 年一季报， 2024年实现营业收入、归母净利润及扣非归母净利润分别为223.58 亿元、5.19亿元及4.96亿元，分别同 比下降0.36%、44.13%及41.18%。 2024 年，公司营业收入同比下降0.36%，主要由于：1）公司24 年优化部分盈利能力较差的门店，零售 板块收入同比下降1.25%；2）行业竞争压力加剧，部分老店增长放缓，但公司加盟、联盟及分销业务 增长5.92%为31.05 亿元，较为稳健。归母净利润同比下降44.13%，扣非归母净利润同比下降41.18%， 慢于收入增长 ...

健之佳（605266）公告，2025年第一季度营业收入22.94亿元，同比下降0.85%。归属于上市公司股东的 净利润3352.56万元，同比下降35.85%。基本每股收益0.22元/股，同比下降35.29%。 ...