CMB International: Mainland China's drug pricing policy is expected to be optimized, and the commercialization of medical AI is accelerating.

Guosen Securities International released a research report stating that it maintains a "outperform" rating on the mainland pharmaceutical industry. The MSCI China Healthcare Index has risen by 11.5% since the beginning of 2025, but underperformed the MSCI China Index by 1.2%. The pharmaceutical industry is expected to continue to see valuation recovery in 2025 due to the optimization of domestic drug pricing policies, improvement of the domestic macroeconomic environment, and expectations of overseas interest rate cuts. The report pointed out that the category B medical insurance catalog is expected to be implemented this year, providing a better payment environment for innovative drugs; the acceleration of medical equipment bidding will drive the profit recovery of domestic medical equipment companies. The company is optimistic about the industry's valuation recovery and recommends buying INNOVENT BIO (01801), BEIGENE (06160), 3SBIO (01530), Shanghai United Imaging Healthcare (688271.SH), GIANT BIOGENE (02367), WuXi AppTec (02359), and SKB BIO-B (06990).