CICC International: Multiple positive factors in the pharmaceutical sector, expected to be a key turning point year this year.

Industrial Securities International released a research report pointing out that the pharmaceutical sector is stable and showing signs of improvement, with this year expected to be a key turning point. Short-term policy disturbances have been basically resolved, and more favorable policies are expected to be implemented. The industry's future two-year profit growth is highly certain, with short-term profit forecasts gradually being revised upwards. The continued trend of innovative drugs going global is also a positive factor. For the second half of the year, the bank believes that the pharmaceutical sector will benefit from the recovery of the macro environment, interest rate cuts, and policy incentives. Future opportunities will come from stocks that are currently undervalued, have clear long-term growth potential, and have rich catalysts. In terms of innovative drugs, the bank expects leading biotechnology companies to reach a turning point in profitability balance, and recommends Kangfang Biotechnology, Rongchang Biotechnology, and KelynBio. As for the prescription drug sector, the bank recommends focusing on stocks that show short-term performance growth and long-term value creation potential, with a focus on Sun Pharma. In addition, the CXO model favors Pharmaron and Kingsley Pharmaceuticals. In the private hospital sector, the bank recommends Guerseny and Haigia Healthcare, which have strong short-term growth prospects and a clear long-term expansion path, while also paying attention to Jinxin Reproductive, which benefits significantly from policy dividends.