Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [1] Core Insights - The overall and weighted holdings of public funds in the pharmaceutical sector reached a new low since 2018 in Q4 2025, with the pharmaceutical heavy holdings accounting for 8.0% of all public funds, down 1.7 percentage points quarter-on-quarter [2][9] - The total scale of pharmaceutical funds in Q4 2025 was 394.6 billion yuan, a decrease of 9.2% from the previous quarter, with active pharmaceutical funds at 177.7 billion yuan, down 14% [20] - The proportion of passive pharmaceutical funds has increased significantly from 18% in Q1 2018 to 55% in Q4 2025, indicating a shift towards passive investment strategies in the sector [20] Fund Holdings Analysis - In Q4 2025, the pharmaceutical sector saw a decrease in active fund holdings, with active pharmaceutical funds accounting for 33% of the total pharmaceutical heavy holdings, up 2 percentage points, while non-pharmaceutical active funds accounted for 26%, down 5.1 percentage points [3][13] - The top five holdings by market value in public funds included Heng Rui Medicine (31.7 billion), WuXi AppTec (29.6 billion), and Innovent Biologics (16.6 billion) [6] - The top three increases in active fund holdings were for Tigermed (1.7 billion), Yimeng Biologics (1.4 billion), and CSPC Pharmaceutical Group (1.3 billion) [6] Sector-Specific Trends - The report highlights a shift in fund holdings towards innovative drugs and CXO services, while traditional Chinese medicine and high-value consumables are underweighted [6] - The report notes that the proportion of holdings in traditional Chinese medicine and biotech has increased, while holdings in BioPharma and CXO have decreased significantly [6][28] - The overall market value of holdings in the Bio-Tech sector reached 7.25% in Q4 2025, marking the highest level since Q1 2018, with active pharmaceutical funds holding 4.9% [28]

Core Viewpoint - The recent Nipah virus outbreak in India has led to increased attention and investment in the A-share pharmaceutical sector, with significant capital inflows into medical ETFs despite some declines in stock prices [1][3]. Group 1: Market Activity - The medical ETF (159929) experienced a drop of over 1% today, following a previous day of gains, but attracted 64 million yuan in capital [1]. - Over the past 10 days, the ETF has seen net inflows for 9 days, accumulating nearly 300 million yuan [1]. - Trading activity remains robust, with intraday trading volume exceeding 120 million yuan [1]. Group 2: Nipah Virus Research - The Nipah virus outbreak in West Bengal, India, has resulted in deaths and the isolation of close contacts [3]. - A significant research study published in the journal Emerging Microbes & Infections confirms that the oral nucleoside drug VV116 shows promising antiviral activity against the Nipah virus, providing new hope for treatment and prevention [3]. Group 3: Company Updates - Sanofi's (三生国健) 2025 annual performance forecast indicates a net profit of approximately 2.9 billion yuan, reflecting a year-on-year increase of 311.35%, driven by a collaboration with Pfizer [4]. - Junshi Biosciences (君实生物) has completed the issuance of its first phase of technology innovation bonds for 2026, totaling 1 billion yuan, aimed at supporting drug research and development [4]. Group 4: Sector Trends - The pharmaceutical industry is expected to benefit from a favorable investment environment and policy support, particularly for innovative drugs and technologies [6][8]. - The medical manufacturing sector has shown a slight increase in industrial value added, while revenue and profit have seen minor declines [7]. - The healthcare expenditure in China has shown a year-on-year growth of 4.7% for the first 11 months of 2025, marking a recovery after two years of decline [7]. Group 5: Investment Strategies - Investment strategies for 2026 focus on innovation, international expansion, and marginal improvements in the pharmaceutical sector [8][9]. - Key areas of interest include innovative drugs, medical devices, and the integration of new technologies such as AI and brain-machine interfaces [8][9].

证券日报网讯1月26日，迈瑞医疗（300760）在互动平台回答投资者提问时表示，当今数字化转型已成 为企业发展的核心驱动力。借助数字力量，迈瑞的业务链管理从供应商端至客户端，各环节均实现了协 同合作，更好地保障了产品生产、交付、服务的质量，为迈瑞医疗在全球市场的稳健发展筑牢根基。通 过数字化建设，公司实现了供应链业务全链路运营支撑，可更好地支持经营分析、现金流管理、运营结 果分析、预算管理、以及合规与风险管理流程的运转。公司的供应链驾驶舱整合了各个环节的数据，打 破信息孤岛，确保产品从物料供应到交付的每一环节都符合法规和质量要求。2024年，公司重点强化了 总部与各生产基地的数字化建设、以及海外工厂和仓库的系统对接。针对国内生产基地，新建砀山生产 基地实现了数字供应链系统基础生产业务的全覆盖，并完成了与南京生产基地的系统联通，实现多基地 的生产协同。武汉生产基地数字化系统也已完成并投入运行，支持高值医用耗材业务。在海外，公司启 动了欧洲生产基地数字化系统的本土化建设，打通了国内仓储与欧洲外仓系统，实现高效对接，强化了 区域成品交付能力。凭借坚实的信息化基础，公司继续扩大信息化系统覆盖的范围和深度，建设数字化 ...

Group 1 - The core viewpoint is that innovative drugs are expected to show significant excess returns in 2025, driven by continuous BD overseas expansion, excellent clinical data, and policy support [1] - The CXO sector is anticipated to experience substantial growth due to the recovery in demand and improved investment environment in the global pharmaceutical industry [1] - The report emphasizes the importance of focusing on new technologies, particularly bispecific antibodies, small nucleic acid drugs, AI healthcare, and brain-computer interface innovations [3] Group 2 - Domestic supply and demand are relatively stable, with national health expenditure showing a year-on-year growth of 4.7% from January to November 2025, marking a positive turnaround after two years of decline [2] - The medical insurance fund's income and expenditure growth rates continue to decline, with total income of 2.63 trillion yuan (+2.9%) and expenditure of 2.11 trillion yuan (+0.5%) from January to November [2] - The report suggests that the commercialization of new drug forms is entering a critical phase, with significant clinical data supporting the application of B-cell depletion therapies in autoimmune diseases [3] Group 3 - Investment recommendations include focusing on innovative overseas expansion and new technology directions, with suggested stocks such as Mindray Medical, WuXi AppTec, and others [4] - The report highlights the potential for explosive growth in the global market for brain-computer interfaces, supported by policy incentives and technological breakthroughs [3]

Group 1 - The core viewpoint of the news highlights the performance of the China Medical and Medical Device Innovation Index, with notable stock movements, including a leading increase of 8.29% by Sangfor Technologies [1] - The Medical Innovation ETF has seen continuous net inflows over the past week, with a maximum single-day net inflow of 40.537 million yuan, totaling 114 million yuan [1] - A significant research breakthrough was reported regarding the oral nucleoside drug VV116, which shows promising antiviral activity against the Nipah virus, providing a potential treatment option for high-risk populations [1] Group 2 - Guosen Securities noted that the innovative drug sector exhibited significant excess returns in 2025, driven by international business development, continuous positive clinical data, and supportive policies [2] - The Medical Innovation ETF closely tracks the China Medical and Medical Device Innovation Index, which selects 30 profitable and growth-oriented companies to reflect the overall performance of the sector [2] - As of December 31, 2025, the top ten weighted stocks in the index include WuXi AppTec, Heng Rui Medicine, and Mindray Medical, collectively accounting for 63.75% of the index [2]

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5] Core Views - The pharmaceutical sector underperformed the overall market, with a 0.39% decline in the biopharmaceutical sector compared to a 1.17% increase in the overall A-share market [32] - The TTM price-to-earnings ratio for the pharmaceutical sector is 38.51x, which is at the 84.35 percentile of the historical valuation over the past five years [32][37] Summary by Sections Market Performance - The overall A-share market increased by 1.17%, while the Shanghai and Shenzhen 300 index decreased by 0.62%. The biopharmaceutical sector saw a decline of 0.39% [32] - Among sub-sectors, chemical pharmaceuticals fell by 1.11%, while medical services dropped by 2.17%. Conversely, medical commercial and traditional Chinese medicine sectors saw increases of 4.26% and 0.89%, respectively [32] Fund Holdings Analysis - As of Q4 2025, the net asset value of pharmaceutical funds reached 358.4 billion, a decrease of 9.0% from the previous quarter [11] - The proportion of pharmaceutical holdings in all funds was 7.97%, down by 1.71 percentage points [16] - The largest sub-sectors by holdings were chemical preparations (37.5%) and other biological products (20.8%) [19] Key Company Earnings Forecasts and Investment Ratings - Major companies such as Mindray Medical (237 billion market cap, outperform rating), WuXi AppTec (293.6 billion market cap, outperform rating), and Aier Eye Hospital (105.4 billion market cap, outperform rating) are highlighted for their strong earnings forecasts [4] - The report lists several companies with outperform ratings, including New Industry, Huatai Medical, and others, with projected earnings growth over the next few years [4] Investment Strategy - The report emphasizes the importance of the CXO sector and recommends focusing on investment opportunities within this area due to its competitive advantages [41] - It also suggests continued recommendations for innovative drugs and the associated industry chain, with a specific investment portfolio for January 2026 including companies like Mindray Medical and WuXi AppTec [42][43]

Core Insights - The report emphasizes the importance of innovation in the pharmaceutical and biotechnology industry, particularly focusing on the overseas expansion of innovative drugs and the adoption of new technologies [1][4]. - The investment rating for the sector is maintained at "outperform the market" [2]. Group 1: Market Overview and Trends - The overseas market for innovative drugs and the CXO industry is expected to perform exceptionally well in 2025, driven by continuous business development (BD) activities, strong clinical data, and supportive policies [4]. - The domestic supply and demand remain stable, with a shift in payment systems favoring innovation. National health expenditure increased by 4.7% year-on-year in the first 11 months of 2025, marking a recovery after two years of decline [4]. - The report highlights the significant growth potential in new drug forms such as dual antibodies and small nucleic acid drugs, as well as innovations in AI healthcare and brain-machine interfaces [4]. Group 2: Investment Recommendations - The report recommends focusing on companies with global competitiveness and differentiated innovation capabilities, as well as domestic CXO leaders with high barriers in cost control, technology accumulation, and production capacity [4]. - Recommended stocks include Mindray Medical, WuXi AppTec, Kelaiying, Aier Eye Hospital, and several others, with specific mention of H-shares like Kelun-Bio and CanSino Biologics [4][5]. Group 3: Financial Performance and Projections - The report provides a detailed strategy portfolio for 2026, listing companies along with their projected net profits and price-to-earnings (PE) ratios, indicating a generally positive outlook for the sector [5]. - The pharmaceutical sector's overall performance in 2025 was strong, with significant gains in sub-sectors such as medical services and chemical pharmaceuticals, driven by BD collaborations and clinical data releases [12][23]. Group 4: Fund Holdings and Market Sentiment - As of Q4 2025, the net asset value of pharmaceutical funds decreased by 9.0%, with a notable shift where passive funds surpassed active funds for the first time since 2019 [25][32]. - The report indicates a decline in the proportion of pharmaceutical holdings in both active and non-pharmaceutical funds, with a concentration in chemical preparations and other biological products [32][40].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5][41]. Core Views - The pharmaceutical sector has shown weaker performance compared to the overall market, with a TTM P/E ratio of 38.51x, which is at the 84.35th percentile of the past five years [1][37]. - The report highlights the importance of the CXO sector, emphasizing the competitive advantages of Chinese companies in the chemical CDMO field, and suggests that the sector's valuation is expected to recover [41]. - The report recommends focusing on innovative drugs and the associated industry chain, with a notable mention of the upcoming JPM conference and the clinical progress of innovative drugs overseas [41][42]. Summary by Sections Market Performance - The overall A-share market increased by 1.17%, while the biotechnology sector declined by 0.39%. The medical services sector was the worst performer, dropping by 2.17% [1][32]. - The report notes that the largest sub-sectors by holding percentage are chemical preparations (37.5%) and other biological products (20.8%) [19]. Fund Holdings Analysis - As of Q4 2025, the total net asset value of pharmaceutical funds reached 358.4 billion, a decrease of 9.0% from the previous quarter [11]. - The report indicates that the pharmaceutical holdings of all funds accounted for 7.97%, down by 1.71 percentage points [16]. Key Company Earnings Forecasts - The report provides earnings forecasts for several key companies, all rated "Outperform": - Mindray Medical (300760.SZ): 2024A net profit of 11.67 billion [4] - WuXi AppTec (603259.SH): 2024A net profit of 9.35 billion [4] - Aier Eye Hospital (300015.SZ): 2024A net profit of 3.56 billion [4] - New Industry (300832.SZ): 2024A net profit of 1.83 billion [4] - Huatai Medical (688617.SH): 2024A net profit of 670 million [4] Investment Strategy - The report recommends a portfolio of stocks including Mindray Medical, WuXi AppTec, Aier Eye Hospital, and others, focusing on companies with strong growth potential in the innovative drug sector [42][43].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5] Core Views - The pharmaceutical sector underperformed the overall market, with a 0.39% decline in the biopharmaceutical sector compared to a 1.17% increase in the total A-share market [32] - The TTM price-to-earnings ratio for the pharmaceutical sector is 38.51x, which is at the 84.35th percentile of the historical valuation over the past five years [32][37] - The report highlights a shift in fund holdings, with a decrease in the proportion of pharmaceutical holdings in both pharmaceutical and non-pharmaceutical funds [11][16] Summary by Sections Market Performance - The overall A-share market increased by 1.17%, while the Shanghai and Shenzhen 300 index decreased by 0.62% [32] - The biopharmaceutical sector's performance was weaker than the overall market, with specific declines in chemical pharmaceuticals (-1.11%) and medical services (-2.17%) [32] Fund Holdings Analysis - As of Q4 2025, the net asset value of pharmaceutical funds reached 358.4 billion, a decrease of 9.0% from the previous quarter [11] - The proportion of pharmaceutical holdings in all funds was 7.97%, down 1.71 percentage points [16] - The largest sub-sectors by holdings were chemical preparations (37.5%) and other biological products (20.8%) [19] Company Earnings Forecasts and Ratings - Key companies such as Mindray Medical (237 billion market cap, "Outperform" rating) and WuXi AppTec (293.6 billion market cap, "Outperform" rating) are highlighted for their strong earnings forecasts [4] - The report lists several companies with projected earnings growth, including Aier Eye Hospital and New Industry, both rated "Outperform" [4] Investment Strategy - The report recommends focusing on innovative drugs and the CXO sector, emphasizing the competitive advantages of Chinese companies in the chemical CDMO space [41] - A portfolio of recommended stocks includes Mindray Medical, WuXi AppTec, and Aier Eye Hospital, among others [42][43]

Investment Rating - The report maintains a "Buy" rating for the pharmaceutical and biotechnology sector, specifically highlighting companies like Yuyuan Pharmaceutical and CanSino Biologics for their promising developments in mRNA vaccines [1]. Core Insights - The mRNA vaccine sector is experiencing a breakthrough, with mRNA technology leading the shift towards efficient and personalized immunotherapy. This technology offers three core competitive advantages: rapid production capabilities, enhanced safety profiles, and flexibility in antigen design, which supports personalized treatment approaches [1][4]. - The report identifies a favorable ranking of sub-industries, with innovative drugs, research services, and CXO services being prioritized for investment. High-yield sectors include traditional Chinese medicine and pharmacies [10][11]. - Specific companies are recommended for investment based on various therapeutic angles, including PD1 PLUS, ADC, and small nucleic acids, with notable mentions such as Innovent Biologics, CanSino Biologics, and Yuyuan Pharmaceutical [10][12][13]. Summary by Sections Market Performance - The A-share pharmaceutical index has shown a year-to-date increase of 6.66%, outperforming the CSI 300 index by 5.10%. The Hang Seng Biotechnology Index has also seen a 12.40% increase [4][9]. - Sub-sectors such as pharmaceutical commerce (+4.26%) and raw materials (+2.41%) have performed well, while bioproducts and chemical pharmaceuticals have faced declines [4][9]. Clinical Developments - Corcept Therapeutics has reported positive results from its Phase III trial for relacorilant, indicating survival benefits for patients with platinum-resistant ovarian cancer. Meanwhile, Maiwei Biologics has initiated its first patient dosing in the U.S. for its CDH17-ADC innovative drug [1][4]. Investment Recommendations - The report suggests a diversified investment approach across various therapeutic areas, including: - PD1 PLUS: Focus on companies like 3SBio and Innovent Biologics - ADC: Companies such as InnoCare Pharma and Kintor Pharmaceutical - Small nucleic acids: Recommendations include Frontier Biotechnologies and Yuyuan Pharmaceutical - Traditional Chinese medicine: Companies like Zhaoke Pharmaceutical and Fangsheng Pharmaceutical are highlighted [10][12][13]. Fund Holdings - The report notes a decrease in the proportion of public fund holdings in the pharmaceutical sector, with a total holding of 6.67% as of Q4 2025, down 1.46 percentage points from the previous quarter [17][18]. Company Performance - Specific companies have been highlighted for their market performance, with notable increases in stock prices for companies like *ST Changyao (+70.37%) and Hualan Biological (+32.21%) [9]. This comprehensive analysis provides insights into the current state and future potential of the pharmaceutical and biotechnology industry, emphasizing the importance of mRNA technology and strategic investment in key companies.