CITIC Securities: A platform-based company with the ability to integrate pharmaceutical insurance resources and technological barriers, is expected to stand out and grow into a leading industry company.

CITIC Securities believes that with the gradual clarification of the boundaries of basic medical insurance management, commercial insurance is expected to become the core increment of the payment end of the medical and health industry. The current policy dividends, data assets, and the resonance of iterative commercial health insurance products are expected to open up a new cycle of development for the diversified payment system in the medical and health industry. In the next stage, CITIC Securities believes that comprehensive commercial insurance service providers are expected to solve the talent and data constraints on the insurance side, open up structural bottlenecks that innovative pharmaceutical and medical device companies face in realizing their innovative value, and further accelerate the development of the commercial health insurance industry. It is believed that with the improvement of the penetration rate of commercial insurance payments and the maturity of cost control models driven by data intelligence, platform companies with the ability to integrate pharmaceutical insurance resources and technological barriers are expected to stand out and grow into industry leaders. It is recommended to continue to focus on the following three investment themes: 1) Platform companies empowering pharmaceutical insurance synergy, opening up a new cycle of upgrading payment systems. 2) Innovative pharmaceutical and medical devices - Innovative pharmaceutical and medical devices are expected to benefit from the increment of payments brought by commercial health insurance as well as the improvement of the valuation system; 3) Private medical terminals - Welcoming a new payment provider, opening up future growth space for performance.