Core Viewpoint - The article emphasizes the importance of long-term value investing in the innovative pharmaceutical sector, highlighting the successful strategies employed by Zheng Ning, a fund manager at Zhongyin Fund, who has achieved significant returns by investing in innovative drugs during market downturns and focusing on long-term pricing rather than short-term fluctuations [1][2][3]. Group 1: Investment Strategy - Zheng Ning's investment approach is characterized by a focus on long-term pricing, filtering out short-term noise and market fluctuations, which distinguishes him from many growth stock fund managers [3][12]. - He has demonstrated a willingness to take contrarian positions, investing heavily in innovative drugs when the market was pessimistic and shifting focus to less popular sectors as the market evolves [3][4][30]. - The performance of his funds, such as Zhongyin Hong Kong Stock Connect Pharmaceutical Mixed A, which achieved an 84.18% return over the past year, reflects the effectiveness of his strategy [2]. Group 2: Market Insights - The innovative pharmaceutical sector is experiencing a collective explosion in growth, with significant revenue increases and profitability improvements among companies in this space [2][23]. - Zheng Ning believes that the current competitive landscape in China's innovative drug market is undergoing rapid changes due to policy shifts, which could lead to substantial opportunities for well-positioned companies [21][22]. - The article notes that the success of Chinese innovative drugs in international markets is a surprising development, with companies generating substantial overseas revenue [24]. Group 3: Risk Management - Zheng Ning emphasizes the importance of being responsible for every position held in the portfolio, focusing on risk-reward ratios rather than short-term performance rankings [4][29]. - He advocates for a balanced approach to investing, suggesting that maintaining a stable life outside of work can enhance investment performance [57]. - The article highlights the need for investors to be cautious at market peaks and to recognize when to take profits, contrasting this with the opportunities available at market bottoms [36][50]. Group 4: Future Outlook - Looking ahead, Zheng Ning is optimistic about the continued growth of the innovative pharmaceutical sector but is also exploring investment opportunities in domestic demand sectors that are currently undervalued [45][46]. - He anticipates that as the market matures, the investment landscape will shift towards higher risk and lower win rates, similar to trends observed in the U.S. market [22][24]. - The article concludes with Zheng Ning's assertion that he is not solely an innovative drug fund manager but rather a broader pharmaceutical industry manager, indicating potential shifts in his investment focus as market conditions change [48][49].