Zhongtai Securities(600918) 证券时报网·2024-12-02 06:14Industry Overview - The pharmaceutical sector experienced a strong rebound in early November after being at a low level, followed by fluctuations in line with the broader market [1] - The sector's performance was driven by policy catalysts such as medical insurance prepayments and the release of the medical insurance catalog, with notable performance in pharmaceutical commerce and innovative drug sub-sectors [2] - The easing of medical insurance policies, a core factor suppressing the sector, along with industry comparisons and fund holdings, suggests significant upward potential for the sector [2] Investment Opportunities - High-growth areas: Despite valuation pressures in recent years, sectors like innovative drugs, generic-innovative combinations, and GLP-1 are expected to benefit from policy support and improved risk appetite, opening up valuation space [2] - Turnaround opportunities: The pharmaceutical sector has seen a trend of recovery, particularly in active pharmaceutical ingredients (APIs), low-consumption products, and upstream segments. In the coming year, CRO/CDMO, upstream, ICL, and equipment bidding are expected to show clear inflection points [2] - Stable performance: The sector has shown rotational performance, with structural opportunities driven by strong earnings. Companies in traditional Chinese medicine and blood products are expected to maintain robust performance [2] - Thematic and event-driven opportunities: During the prolonged earnings vacuum period, short-term risk appetite may increase, creating opportunities from mergers and acquisitions, policy improvements, and other events [2] Key Companies to Watch - Companies such as WuXi AppTec, Dong-E-E-Jiao, and Betta Pharmaceuticals are highlighted for potential investment opportunities [3]