Group 1 - The report focuses on the November allocation strategy for the Traditional Chinese Medicine ETF (560080.SH), which tracks the CSI Traditional Chinese Medicine Index (930641.CSI) that selects listed companies involved in the production and sales of traditional Chinese medicine [3][8] - The best-performing stock in the ETF during the period from May 1, 2025, to October 31, 2025, is Lingrui Pharmaceutical (600285.SH), chosen based on the deviation of component stocks from the index and research coverage [3][8] - Lingrui Pharmaceutical's valuation at market bottoms in January 2024 and September 2024 was close to a 15x PE ratio based on EPS estimates for 2023 and 2024, respectively [3][8] Group 2 - Based on a 15x PE ratio, Lingrui Pharmaceutical's stock price fluctuations have not exceeded the value range defined by the T-1 year and T+2 year expected fundamental values, where T year fundamental value is calculated as T year expected EPS (or actual EPS if disclosed) multiplied by 15 [9] - As of November 14, 2025, the expected fundamental values per share for Lingrui Pharmaceutical from 2025 to 2027 are projected to be 22.09, 25.13, and 28.33 CNY, with a closing price of 22.68 CNY per share, indicating a rational investment sentiment in the market [9] - The closing position for Lingrui Pharmaceutical on November 14, 2025, was 90.48% based on its position within the expected fundamental value range [9] Group 3 - From October 9, 2025, to November 14, 2025, the dynamic allocation strategy for the Traditional Chinese Medicine ETF based on Lingrui Pharmaceutical outperformed the buy-and-hold strategy, achieving a terminal return of 5.82% with a maximum drawdown of 2.54%, compared to a 5.96% return and a 3% maximum drawdown for the buy-and-hold strategy [4][9]