Group 1 - The core viewpoint is that the domestic innovative drug industry is expected to reach a turning point by 2025, shifting from capital-driven to profit-driven growth, presenting opportunities for both performance and valuation recovery [1] - The innovative drug sector is experiencing a marginal improvement in fundamentals, supporting a recovery in the secondary market, with new products being commercialized and leading innovative drug companies entering a profit cycle [1] - Global breakthrough clinical data is being released, stimulating activity in the overseas licensing market and accelerating the realization of research and development results [1] Group 2 - Continuous release of supportive policies for innovative drugs, including the introduction of the first Class B medical insurance directory within the year, is expected to drive market expansion [1] - Changes in payment policies are anticipated to further promote the growth of the innovative drug market, with new measures expected to be implemented regarding drug pricing mechanisms and additional support for innovative drug policies [1] - The Shanghai-Hong Kong-Shenzhen Innovative Drug ETF (517110) tracks the SHS Innovative Drug (RMB) Index (931409), which includes 50 listed companies involved in innovative drug research and production, reflecting the overall performance of the sector [1]

Group 1 - The innovative drug sector is experiencing a significant pullback, with the Shanghai-Hong Kong-Macau ETF (517110) declining nearly 3%, presenting potential low-position investment opportunities [1] - The pharmaceutical and biotechnology industry shows notable differentiation: chemical pharmaceuticals are performing well, with a projected revenue growth rate of 4.2% year-on-year in 2024 and a substantial net profit growth of 97.7%, driven by rapid market penetration of innovative drug products and reduced losses [1] - The CRO/CMO sector is recovering, with revenue expected to show quarter-on-quarter improvement in 2024, and a growth rate of 11.2% in Q1 2025, significantly surpassing the industry average decline of 4.3% [1] Group 2 - The overall pharmaceutical sector is impacted by high base effects and weak consumer demand, but there are prominent structural opportunities driven by innovation [1] - Current valuations in the pharmaceutical sector are at historical lows, highlighting attractive cost-performance ratios for investment [1] - The Shanghai-Hong Kong-Macau ETF (517110) tracks the SHS Innovative Drug (RMB) Index (931409), which includes 50 listed companies involved in innovative drug research and production, reflecting the overall performance of the innovative drug sector [1]