Guangda Securities: Hong Kong stocks in the pharmaceutical sector are performing strongly, suggesting actively increasing allocation.

Guangfa Securities research report indicates that the valuation contraction of the healthcare sector in the Hong Kong stock market has been ongoing for several years, and the PE valuations of some high-quality companies remain attractive even after rebounding. Considering that some innovative drug companies' BD transactions continue to catalyze, companies in niche markets and those in the midst of transformation may see positive changes, investors should actively pay attention to high-quality targets in the sector and increase their sector allocations. Some high-quality companies within specific sub-segments of the sector have limited downside price risks and have long-term investment value, suggesting that investors focus on value investment opportunities in high-quality, undervalued companies in the sector.