Macroeconomic Research - The report highlights the increasing significance of domestic circulation in the economy, with external pressures impacting the overall economic performance [2][3] - In June, external demand was boosted by the easing of tariffs, but domestic demand remained weak, particularly in the real estate market [3] - Financial data showed an unexpected increase in social financing and M1 growth, indicating a positive trend in the financial sector [3][5] Fixed Income Research - The report indicates a return to a fluctuating pattern in the bond market, with a notable increase in the issuance of government bonds [4][6] - Financial data for June showed improvements in both total volume and structure, with private sector financing demand showing signs of recovery [5] - The bond market is expected to remain stable, with liquidity being a key variable influencing market performance [6] Industry Research - The report discusses the launch of the 11th batch of centralized drug procurement, with rules being further optimized to enhance the procurement process [7][9] - Notable company announcements include the acceptance of applications for new drug approvals and acquisitions within the pharmaceutical sector [8] - The pharmaceutical and biotechnology sector saw a significant increase in stock performance, with the industry index rising by 4.52% during the reporting period [8][9]

Investment Rating - The report maintains a positive outlook on the innovative drug sector, expecting significant revenue growth and potential profitability for several companies in the first half of 2025 [3][8]. Core Insights - The innovative drug sector is projected to see revenue growth of at least 40% year-on-year for companies such as BeiGene, Innovent Biologics, and others, driven by the commercialization of core products [3][8]. - The Pharma sub-sector is expected to experience a revenue growth rate of 10-15% for companies like Hansoh Pharmaceutical and China Biologic Products, while others may see growth of 5-10% [3][8]. - The medical services sector is anticipated to have a revenue growth of 15-20% for companies like GuoShengTang, with a focus on mergers and acquisitions [3][8]. Summary by Sections Innovative Drugs - Companies expected to achieve over 40% revenue growth in 1H25 include BeiGene, Innovent Biologics, and others, primarily due to the commercialization of key products [3][8]. - Some companies, such as BeiGene and Innovent Biologics, are likely to reach profitability due to increased sales volume [3][8]. - The report highlights that companies like Hutchison China MediTech may see significant profit growth due to asset disposals [3][8]. Pharma - The impact of centralized procurement is gradually diminishing, allowing for continued innovation and transformation within the sector [3][8]. - Companies projected to achieve 10-15% revenue growth include Hansoh Pharmaceutical and China Biologic Products, while others like 3SBio and United Laboratories may see 5-10% growth [3][8]. Medical Services - GuoShengTang is expected to have a revenue growth of 15-20% in 1H25, with ongoing attention to domestic and international acquisition activities [3][8].