Macro Strategy - In October, China's exports showed a year-on-year decline of -1.10%, marking the first negative growth since March 2025, which affected the cumulative year-on-year growth rate, decreasing from 6.10% in September to 5.30% in October. This decline is attributed to a high base in October 2024 and a temporary escalation in trade conflicts between China and the US in early October 2025 [3][4]. Market Overview - From November 3 to November 7, 2025, A-share indices experienced wide fluctuations, with the Shanghai Composite Index rising by 1.08% and the ChiNext Index increasing by 0.65%. The market is expected to continue a "slow bull" trend with wide fluctuations in November due to reduced short-term trade conflict risks between China and the US [4][5]. - Among the 31 first-level industries, the top performers were electric equipment and coal, with weekly increases of 4.98% and 4.52%, respectively. Conversely, the beauty care and computer sectors saw declines of -3.10% and -2.54% [6][7]. North Exchange Market - As of November 7, 2025, the North Exchange had 282 listed stocks, with an average total market value of 908.24 billion yuan, reflecting a 1.24% increase from the previous week. The liquidity decreased, with average trading volume dropping by 17.23% [11][12]. - The highest weekly gain was recorded by Danna Biological, which surged by 377.78% in its first week of trading, while the largest decline was seen in Beiyikang, which fell by 12.35% [13]. Vaccine Industry - The vaccine industry is experiencing structural differentiation, with companies like Kangtai Biological and Zhonghui Biological making significant advancements in vaccine development for specific populations, such as infants and pregnant women. The updated technical guidelines emphasize the importance of vaccination for high-risk groups [17][21]. - The vaccine sector's performance remains under pressure, with a year-to-date decline of -1.57%. The industry is focusing on innovation and international expansion to navigate current challenges [19][21]. - The vaccine sector's price-to-earnings ratio (PE) is currently at 99.07X, reflecting a decrease of 4.97X from the previous week, while the price-to-book ratio (PB) remains stable at 1.94X [20]. Investment Recommendations - The vaccine industry is advised to focus on innovation and international markets, as the current market conditions present challenges due to supply-demand imbalances and intense competition. Companies with strong technological capabilities and differentiated product lines are recommended for investment [21][23].

Investment Rating - The industry investment rating is maintained at "Overweight" [2][9]. 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 [8][9][28]. - Recent breakthroughs in vaccine development for specific populations, such as the quadrivalent influenza vaccine for infants and pregnant women, highlight ongoing innovation in the sector [4][8][9]. - The industry is experiencing structural differentiation among companies, with a focus on innovative and multi-valent products to enhance competitiveness [8][9]. Market Performance - The vaccine sector saw a slight increase of 0.04% last week, while the overall pharmaceutical sector declined by 2.4% [5][11]. - Year-to-date, the vaccine sector has experienced a cumulative decline of 1.57% [5][11]. Company Developments - Companies like Kangtai Biological and Zhonghui Biological are making significant progress in vaccine trials for specific demographics, which could fill market gaps [4][8]. - The latest technical guidelines emphasize the importance of vaccination for high-risk groups, which may drive demand for vaccines [4][8]. Valuation Metrics - The vaccine sector's price-to-earnings (PE) ratio is 99.07X, down 4.97X from the previous period, indicating a high valuation relative to historical standards [7][20]. - The price-to-book (PB) ratio stands at 1.94X, remaining stable, with historical maximum and minimum values of 2.29X and 1.69X respectively [7][20]. Investment Recommendations - The report suggests focusing on companies with strong R&D capabilities and differentiated product offerings, recommending Kangxino and Kanghua Biological as key players to watch [9][28].