Investment Rating - The industry investment rating is maintained at "Overweight" [4][11][28] Core Insights - The vaccine industry is currently transitioning from scale expansion to innovation-driven growth, facing short-term pain due to supply-demand imbalance and homogenized competition, but the long-term outlook remains positive driven by policy, demand, and technology [10][11][28][30] - Recent regulatory updates, such as the revised vaccine circulation quality supervision measures in Shandong Province, highlight ongoing improvements in vaccine safety mechanisms and regulatory frameworks [6][10] - The approval of innovative vaccines, like the freeze-dried Hib vaccine, reflects the continuous progress of domestic vaccine companies [6][10] Market Performance - The vaccine sector saw a 0.78% increase last week, with a cumulative decline of 4.83% since the beginning of 2025 [7][13] - The relative performance compared to the CSI 300 index shows a decline of 3% over the past month and 30% over the past year [6][9] Valuation Metrics - The vaccine sector's PE (ttm) is 100.69X, with a year-to-date maximum of 111.89X and a minimum of 28.67X, indicating a slight increase from the previous period [9][22] - The PB (lf) stands at 1.85X, with a year-to-date maximum of 2.29X and a minimum of 1.69X, reflecting a stable valuation range [9][22] Investment Recommendations - The report suggests focusing on companies with strong R&D capabilities and differentiated product lines, recommending companies like CanSino and Kanghua Biotech for their innovation and market positioning [10][11][30]