Investment Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Insights - The analysis indicates a continuous recovery in the heavy positions of pharmaceutical funds, with innovative drugs being the most recognized direction for increased investment [1][8] - In Q2 2025, the overall heavy position of pharmaceutical funds increased, with public funds' pharmaceutical heavy position at 9.8%, up by 0.7 percentage points from the previous quarter [3][13] - The total scale of pharmaceutical funds reached 338.5 billion yuan, reflecting a 3.7% increase quarter-on-quarter [24] Fund Holdings Overview - In Q2 2025, the heavy position of all public funds in the pharmaceutical sector rose, with active funds showing a heavier allocation compared to non-pharmaceutical funds [3][13] - The heavy position of pharmaceutical active funds accounted for 32% of the total heavy position market value in the pharmaceutical sector, while non-pharmaceutical active funds accounted for 34% [17][24] - The total number of pharmaceutical fund shares was 610.6 billion, down by 3.8% from the previous quarter [24] Sector Breakdown - The overall holding ratios for different sectors in the pharmaceutical industry showed varied changes, with Pharma, Bio-Tech, and Bio-Pharma seeing increases, while CXO and specialized chains experienced declines [7][10] - The holding ratio for Pharma increased by 0.39 percentage points, while Bio-Tech saw an increase of 0.21 percentage points [7][32] - The top three sectors with increased holdings in public funds were Bio-Pharma, Pharma, and Bio-Tech, while CXO, specialized chains, and medical devices saw the largest declines [10][36] Heavy Stock Analysis - The top five stocks by total market value held by all public funds in the pharmaceutical sector were: Heng Rui Medicine (32.1 billion), WuXi AppTec (24.7 billion), Mindray Medical (22.7 billion), Innovent Biologics (15.5 billion), and United Imaging Healthcare (11.9 billion) [10] - The active increase in market value for stocks included Innovent Biologics (+7 billion), Sanofi Biopharma (+6 billion), and Xinli Tai (+3 billion) [10] - The active reduction in market value was led by Aier Eye Hospital (-4.3 billion), WuXi AppTec (-4.2 billion), and Heng Rui Medicine (-2.5 billion) [10]