Core Viewpoint - The investment outlook for the pharmaceutical and bioproducts industry in 2026 indicates a potential recovery in demand and improvement in fundamentals and valuations, particularly in the traditional Chinese medicine sector [1] Group 1: Traditional Chinese Medicine - Short-term pressure from the base is expected to ease, with channel inventory clearing accelerating [1] - There is optimism for demand recovery by the end of the year, along with opportunities for fundamental and valuation improvements [1] - The brand extension space for traditional Chinese medicine consumer companies is broad, supported by innovation [1] Group 2: Blood Products - Attention is drawn to the "14th Five-Year Plan" for plasma station construction and industry consolidation progress [1] - Demand for immunoglobulin and factor products is expected to increase, along with new product development [1] Group 3: Vaccine Industry - Focus on the sales improvement of key products and the progress of innovative pipelines [1] - Policy developments and international expansion of vaccines are anticipated to further drive corporate growth [1] Group 4: Pharmaceutical Retail - The transformation and reform in the pharmaceutical retail sector are progressing steadily [1] - Future catalysts for growth are being monitored [1] Group 5: Pharmaceutical Distribution - The revenue side of the pharmaceutical distribution industry is showing steady improvement [1] - Attention is on payment collection and the "14th Five-Year Plan" [1]

疫苗：经营持续承压，期待销售环比改善及新品贡献 1)看好创新品种未来格局，建议关注创新疫苗管线研发进展。2)政策方面：近期商业保险、医防融合及 行业并购相关政策陆续出台，为疫苗行业未来发展奠定了政策基础，期待后续进展。3)疫苗行业出海： 随着疫苗企业出海事业持续推进，出海动作也在价值链上下游加速延展深化，期待各企业海外市场开拓 进展。4)国资入主持续赋能，关注后续进展。 医药零售：转型变革稳步推进，关注多元催化 智通财经APP获悉，中信建投发布研报称，中药行业短期基数压力有望缓解，渠道库存加速出清，看好 年底需求回暖，及后续基本面和估值改善机会;创新领域有助构建第二增长曲线，中药消费品公司品牌 延展空间广阔。血制品行业关注"十五五"浆站建设规划及行业并购整合进展，需求端看好静丙、因子类 产品需求端提升及新品研发。疫苗行业关注重磅产品销售改善情况及创新管线研发进展，政策出台及疫 苗出海有望推动企业进一步发展。医药零售行业转型变革稳步推进，关注后续多元催化。医药流通行业 收入端稳健向好，关注回款及"十五五"规划。 中信建投主要观点如下： 中药：着眼长期，静待改善 1)短期行业基数压力有望逐步缓解，渠道调整加速出清 ...

Group 1: Market Overview - A-shares indices opened higher with the Shanghai Composite Index up 0.35%, Shenzhen Component Index up 1.03%, and ChiNext Index up 1.79% [1] Group 2: Institutional Insights - Huatai Securities continues to recommend cyclical sectors such as aviation, oil transportation, and road infrastructure, citing improved industrial production and export conditions, as well as a moderate recovery in consumer data [2] - The aviation sector is expected to see continued recovery in revenue levels due to low supply growth, industry self-regulation, and a low base effect [2] - The oil transportation sector is anticipated to maintain high prosperity driven by multiple factors including OPEC+/Americas production increases and low oil prices [2] - The road infrastructure sector is seen as having upward potential due to attractive dividend yields and increased insurance fund allocations [2] Group 3: Industry Focus - CITIC Construction Investment is optimistic about the traditional Chinese medicine industry, expecting demand to recover by year-end and improvements in fundamentals and valuations [3] - The blood products sector is highlighted for its focus on the "14th Five-Year Plan" for plasma station construction and industry consolidation [3] - The vaccine industry is monitored for sales improvements of key products and progress in innovative pipelines, with policies and international expansion expected to drive further development [3] - The pharmaceutical retail sector is undergoing steady transformation, with attention on multi-faceted catalysts for growth [3] - The pharmaceutical distribution sector shows stable revenue growth, with a focus on receivables and the "14th Five-Year Plan" [3]

Market Overview - The market experienced narrow fluctuations yesterday, with both the Shanghai Composite Index and the ChiNext Index closing in the green. The total trading volume in the Shanghai and Shenzhen markets was 1.73 trillion, a decrease of 200.2 billion compared to the previous trading day [1]. Sector Performance - The sectors that saw the highest gains included precious metals, military industry, and aquaculture, while sectors such as Hainan, gas, and film and television box office experienced declines. By the end of the trading day, the Shanghai Composite Index rose by 0.18%, and the ChiNext Index increased by 0.25% [1]. Investment Recommendations Huatai Securities - Huatai Securities continues to recommend cyclical aviation, trading in oil transportation, and allocation in highways. The firm notes that external uncertainties have settled, leading to a recovery in industrial production and export sentiment, along with a mild rebound in consumer data. Specifically, they expect: 1. Aviation: October ticket prices continue to improve, supported by low supply growth and a low base, indicating a sustained recovery in industry profitability. 2. Oil Transportation: Multiple favorable factors, including OPEC+/U.S. production increases and low oil prices, are expected to maintain high activity levels in the oil transportation sector. 3. Highways: With insurance funds beginning year-end allocations, the highway sector is anticipated to have upward potential due to attractive dividend yields [2]. CITIC Securities - CITIC Securities is optimistic about the traditional Chinese medicine industry, anticipating a recovery in demand by year-end and subsequent improvements in fundamentals and valuations. They highlight: - The easing of short-term base pressure and accelerated channel inventory clearance. - The potential for innovative areas to create a second growth curve, with significant brand extension opportunities for Chinese medicine consumer goods. - Attention to the blood products sector regarding the "14th Five-Year Plan" for plasma stations and industry consolidation, as well as the vaccine sector's product sales and innovation pipeline [3]. Tianfeng Securities - Tianfeng Securities suggests focusing on the recovery opportunities in the liquor sector, noting a "volume increase, price drop" trend during the 2025 Double Eleven shopping festival. Key points include: - Traditional e-commerce platforms saw major liquor prices fall below critical levels due to inventory pressures, while emerging channels like instant retail and Douyin experienced growth. - Liquor companies are actively combating counterfeiting and stabilizing prices through authorized and unauthorized listings. - The industry is shifting from price wars to value reconstruction, emphasizing high-quality products and refined channel operations. The current dividend returns from leading liquor companies are attractive, and consumer spending is expected to gradually recover [4].

Group 1: Aviation Sector - The aviation industry is expected to continue its recovery trend in ticket prices due to low supply growth, industry self-regulation, and a low base effect [1] - The overall revenue levels in the aviation sector are anticipated to improve [1] Group 2: Oil Transportation Sector - The oil transportation sector is projected to maintain high prosperity driven by multiple factors including OPEC+/U.S. production increases, cross-regional price arbitrage, low oil prices boosting inventory replenishment, and geopolitical disturbances [1] Group 3: Highway Sector - The highway sector is expected to have upward potential as insurance funds begin year-end allocations, and the market's risk appetite experiences fluctuations [1] - The attractive dividend yields of AH highway stocks contribute to the sector's appeal [1] Group 4: Liquor Industry - The liquor industry is experiencing a "volume increase, price drop" phenomenon, with traditional e-commerce platforms seeing prices fall below critical levels due to dealer inventory pressures and platform subsidies [2] - Emerging channels like instant retail and Douyin are showing growth, indicating a shift in consumer purchasing behavior towards "buy now, drink now" [2] - Major liquor companies are initiating anti-counterfeiting actions to stabilize prices and balance online and offline channel interests [2] Group 5: Traditional Chinese Medicine Sector - The traditional Chinese medicine industry is expected to see demand recovery by year-end, with inventory levels clearing up [3] - There are opportunities for fundamental and valuation improvements in the sector [3] - The innovation sector is seen as a potential second growth curve for traditional Chinese medicine companies [3] Group 6: Blood Products and Vaccine Industries - The blood products sector is focused on the "14th Five-Year" plan for plasma station construction and industry consolidation [3] - The vaccine industry is monitoring sales improvements of key products and progress in innovative pipelines, with policies and international expansion expected to drive further development [3]

Group 1: Aviation and Transportation - The aviation sector is expected to continue its recovery due to improved ticket prices in October, low supply growth, and a low base effect [1] - The oil transportation sector is anticipated to maintain high prosperity driven by multiple factors including OPEC+ production increases, cross-regional price arbitrage, and geopolitical events [1] - The highway sector shows potential for upward movement as insurance funds begin year-end allocations, and highway stocks offer attractive dividend yields [1] Group 2: Alcohol Industry - The white liquor industry is experiencing a "volume increase and price drop" phenomenon, with traditional platforms seeing prices fall below key thresholds due to inventory pressures [2] - Emerging retail channels are growing, indicating a shift in consumer behavior towards immediate consumption [2] - The industry is advised to transition from price wars to value reconstruction, focusing on high-quality products and refined channel operations [2] Group 3: Traditional Chinese Medicine and Pharmaceuticals - The traditional Chinese medicine sector is expected to see demand recovery by year-end, with inventory pressures easing [3] - The blood products industry is focusing on the "14th Five-Year" plan for plasma stations and industry consolidation, with increased demand for specific products [3] - The vaccine sector is monitoring sales improvements and innovation pipeline developments, with policies and international expansion likely to drive growth [3]

Group 1 - The short-term pressure on the traditional Chinese medicine industry is expected to ease, with channel inventory clearing accelerating, leading to a positive outlook for year-end demand recovery and subsequent fundamental and valuation improvement opportunities [1] - The innovative sector is expected to help build a second growth curve, with significant brand extension potential for traditional Chinese medicine consumer companies [1] - In the blood products industry, attention is focused on the "14th Five-Year Plan" for plasma station construction and industry merger and acquisition progress, with an optimistic view on the demand for immunoglobulin and factor products, as well as new product development [1] Group 2 - In the vaccine industry, the focus is on the sales improvement of key products and the progress of the innovation pipeline, with policy implementation and international expansion expected to further drive corporate development [1] - The transformation and reform in the pharmaceutical retail industry is steadily advancing, with attention on subsequent multi-faceted catalysts [1] - The pharmaceutical distribution industry shows stable revenue growth, with a focus on receivables and the "14th Five-Year Plan" [1]

Core Viewpoint - The company reported a revenue of 3.11 billion yuan in the first half of 2025, representing a year-on-year growth of 9.47%, while the net profit attributable to shareholders decreased by 12.88% to 633 million yuan [1] Group 1: Financial Performance - In Q2 2025, the company achieved a revenue of 1.793 billion yuan, with a year-on-year growth of 10.70%, but the net profit attributable to shareholders fell by 5.13% to 388 million yuan [1] - For H1 2025, the company’s plasma collection volume was approximately 1361 tons, a year-on-year increase of 0.7%, holding about 20% of the domestic market share [2] - The revenue from immunoglobulin (IVIG) reached 1.43 billion yuan in H1 2025, up 6.56% year-on-year, with a gross margin of 49.8%, down 7.67 percentage points [2] - Albumin revenue was 1.35 billion yuan, showing a year-on-year increase of 20.8%, with a gross margin of 41.0%, down 11.61 percentage points [2] - Other blood products generated 330 million yuan in revenue, down 13.2% year-on-year, with a gross margin of 43.3%, a decrease of 14.8 percentage points [2] Group 2: Market Position and Growth Potential - The company maintains a leading position in the domestic plasma collection industry, with 107 plasma collection stations, of which 85 are operational as of H1 2025 [2] - The company is expected to achieve significant results in acquiring new plasma collection stations due to the strength of its controlling shareholder, China National Pharmaceutical Group [2] - The launch of the fourth-generation chromatography immunoglobulin (10%) is anticipated to enhance profit margins, as it is safer and more efficient compared to the third generation [3] - The company has several products in the pipeline, including subcutaneous immunoglobulin and recombinant coagulation factors, which are in various stages of clinical trials [3] Group 3: Profit Forecast - The company’s projected net profits for 2025-2027 are 1.44 billion, 1.67 billion, and 1.91 billion yuan, with year-on-year growth rates of -6.8%, 15.5%, and 14.4% respectively [3] - The current price-to-earnings ratios are estimated to be 28, 24, and 21 times for the years 2025, 2026, and 2027 [3] Group 4: Investment Rating - The company maintains a "Buy" rating [4]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][12]. Core Viewpoints - The company reported a revenue of 1.798 billion yuan for the first half of 2025, representing an 8.80% year-on-year growth, and a net profit of 516 million yuan, which is a 17.19% increase year-on-year [1]. - The blood products business continues to grow steadily, with a revenue of 1.738 billion yuan, up 7.49% year-on-year, and a net profit of 501.89 million yuan, up 18.51% year-on-year [2]. - The company is actively enhancing its plasma collection capabilities, achieving a total plasma collection of 803.66 tons in the first half of 2025, a 5.23% increase compared to the same period last year [2]. - Revenue from similar drugs is on the rise, with the company's affiliate, Hualan Gene, generating sales of 59 million yuan from Bevacizumab [3]. - The company is advancing its innovative drug development, with several products in various stages of clinical trials [3]. Summary by Sections Performance Review - In the first half of 2025, the company achieved an operating income of 1.798 billion yuan, a year-on-year increase of 8.80%, and a net profit attributable to shareholders of 516 million yuan, up 17.19% year-on-year [1]. Operational Analysis - The blood products segment generated 1.738 billion yuan in revenue, a 7.49% increase year-on-year, with a net profit of 501.89 million yuan, reflecting an 18.51% growth [2]. - The company has successfully established a new plasma collection station in Fengdu County, Chongqing, contributing to a total plasma collection of 803.66 tons, a 5.23% increase year-on-year [2]. Profit Forecast, Valuation, and Rating - The report forecasts the company's net profit for 2025-2027 to be 1.25 billion yuan (+15%), 1.41 billion yuan (+13%), and 1.59 billion yuan (+13%) respectively, with corresponding EPS of 0.68, 0.77, and 0.87 yuan [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is expected to see steady growth in plasma collection, with new products anticipated to drive revenue growth [5] - The projected net profit for the company from 2025 to 2027 is estimated at 1.44 billion, 1.67 billion, and 1.91 billion yuan respectively, with year-on-year growth rates of -6.8%, 15.5%, and 14.4% [6] - The current stock price corresponds to a price-to-earnings (PE) ratio of 28, 24, and 21 for the years 2025, 2026, and 2027 respectively [6] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 3.11 billion yuan, a year-on-year increase of 9.47%, and a net profit of 633 million yuan, a year-on-year decline of 12.88% [6] - For Q2 2025, the operating revenue was 1.793 billion yuan, with a year-on-year growth of 10.70%, and a net profit of 388 million yuan, down 5.13% year-on-year [6] - The company maintained a leading position in the industry with a plasma collection volume of approximately 1361 tons in the first half of 2025, representing a year-on-year growth of 0.7% [6] Product and Market Insights - The company has a total of 107 plasma collection stations, with 85 currently operational [6] - Revenue from immunoglobulin products in the first half of 2025 was 1.43 billion yuan, up 6.56% year-on-year, while revenue from albumin was 1.35 billion yuan, up 20.8% year-on-year [6] - The fourth-generation chromatography immunoglobulin product has been launched, which is expected to significantly enhance profit margins [6] Future Growth Potential - The company is expected to achieve notable results in acquiring new plasma collection stations due to the strength of its controlling shareholder, China National Pharmaceutical Group [6] - The ongoing clinical trials for various new products, including subcutaneous immunoglobulin and recombinant coagulation factors, are anticipated to contribute to future revenue growth [6]