China Securities Co.,Ltd.: Brain-Computer Interface Upgraded to a 15th Five-Year Plan Industrial Strategy; Upstream, Midstream, and Downstream Collaborate to Build a New Ecosystem of Human-Machine Integration

GMTEight APP has learned that China Securities Co.,Ltd. has released a research report stating that brain-computer interface has been upgraded to a "15th Five-Year Plan" industrial strategic direction. With strong support from multiple policies, the industrialization process is expected to accelerate, and investors are advised to pay attention to investment opportunities in the sector. Brain-computer interface combines both medical and technological attributes. In the short term, its core applications focus on disease treatment. In the long term, if human function enhancement is achieved and deeply integrated with AI and Siasun Robot&Automation technologies, it is expected to open up a trillion-level market space. China Securities Co.,Ltd. pointed out that there is no absolute superiority or inferiority between non-invasive and invasive brain-computer interface technology routes. The key lies in identifying "true brain-computer" technologies that align with national policy support and have genuine downstream demand. China's brain-computer interface technology research is in a relatively leading tier globally and is expected to cultivate world-leading brain-computer interface enterprises, driving valuation increases for related listed companies in the secondary market while also boosting primary market financing activity. Capital and industrial development are expected to form positive resonance. On industry fundamentals, the pharmaceutical sector as a whole is ushering in a trend of improvement, with innovation-related sectors performing more prominently. In 2025, the overall revenue of the entire pharmaceutical industry sector decreased by 0.56% year on year, with the decline continuing to narrow compared with the first three quarters of 2025. In the first quarter of 2026, the overall sector's revenue increased by 2.16% year on year, officially entering a repair channel on the revenue side. The profit side also showed improvement in tandem. In 2025, the overall sector's non-recurring net profit attributable to parent companies decreased by 18.91% year on year, while in the first quarter of 2026 it increased by 2.69% year on year, turning positive. Among sub-sectors, in the first quarter of 2026, biopharmaceutical upstream, CRO/CMO, medical services, chemical preparations, home medical devices, and high-value consumables all achieved dual growth in revenue and non-recurring net profit attributable to parent companies, with the CRO/CMO sector showing the most obvious growth. From a global perspective, China Meheco Group's advantages of "innovation upgrading + supply chain resilience" are becoming more prominent. The United States leads global early-stage pharmaceutical R&D and high-end pricing, but under the patent cliff of multinational pharmaceutical companies, demand remains strong. The global cost-effectiveness of Chinese assets continues to stand out, and there is broad room for internal and external collaboration. In 2025, the scale of upfront payments for overseas licensing of domestic innovative drugs greatly exceeded the full year of 2024, and medical device companies are also actively exploring paths to go overseas. On the domestic industrial side, the focus is on high-quality development, strengthening the foundations of innovation and compliance across multiple dimensions: on the policy side, procurement rules are being continuously optimized, and diversified payment and medical service pricing reforms are being advanced; on the pharmaceutical chain side, innovative drugs have entered a period of commercialized volume growth, and attention to supply chain security is increasing; on the device side, domestic substitution is extending to the mid-to-high end, with the implementation of new technologies such as AI healthcare and brain-computer interface, industry mergers and acquisitions, and overseas expansion jointly driving upgrading; traditional Chinese medicine, pharmacies, medical services, and other sectors are simultaneously ushering in opportunities for bottoming out, recovery, transformation, and upgrading. At the overseas expansion level, China Meheco Group has made multi-dimensional breakthroughs in the industry and is building a new globalized landscape: innovative drug BD cooperation has become normalized, entering the era of internationalization 2.0; demand in both domestic and overseas markets across the full industrial chain is recovering simultaneously; active pharmaceutical ingredients have mitigated short-term disruptions and are accelerating the transition toward specialty APIs/CDMOs; in the device field, independent sales and BD are being pursued in parallel to develop overseas markets; in the blood products and vaccine fields, overseas registration of intravenous immunoglobulin continues to advance, and vaccine overseas expansion models are becoming increasingly diversified. Looking ahead to 2026, the trend of value reshaping in the pharmaceutical industry is clear. Coupled with catalysis from frontier technologies such as brain-computer interface, China Securities Co.,Ltd. recommends positioning around four main lines: First, the innovation main line. The global liquidity environment is expected to continue improving, providing support for the pricing of innovative assets. Combined with national policies encouraging industry innovation, the industrialization process of frontier technologies is accelerating. Focus on innovative drug and pharmaceutical companies (ADC, second-generation IO, small nucleic acids, weight loss, TCE, etc.), as well as frontier technology targets in the medical device field such as AI healthcare and brain-computer interface. Second, the overseas expansion main line. China Meheco Group's global industrial competitiveness is steadily improving, and in the long term, enterprises with global influence are expected to emerge. It is recommended to pay attention to targets in the innovative drug and medical device tracks with outstanding product strength and team internationalization capabilities. It should be noted that overseas expansion is a long-term and tortuous process, and challenges and pace should be viewed rationally. Third, the marginal change main line. On the one hand, pay attention to investment opportunities in pharmaceutical distribution and medical equipment renewal brought by policy improvement; on the other hand, pay attention to the CXO industry where supply-demand relationships are improving. A recovery in global investment and financing is expected to drive the gradual recovery of downstream customer demand. Fourth, the integration main line. It is recommended to focus on integration and restructuring opportunities in the medical device and traditional Chinese medicine sub-sectors, as well as some pharmaceutical companies and pharmaceutical central state-owned enterprises. Risk warnings: risk of R&D progress falling short of expectations, invasive technologies facing issues such as surgical risk, biocompatibility, and long-term stability, while non-invasive technologies are limited by skull signal attenuation, low signal-to-noise ratio, and insufficient spatial resolution; data privacy and security risks, as brain-computer interface systems involve large amounts of EEG data and personal sensitive information, with hidden dangers of hacker attacks and data leaks; ethical risks, as direct intervention in the brain may trigger controversies related to consciousness control and identity; risk of commercialization progress falling short of expectations, as the transformation of technology from the laboratory to large-scale commercial application is difficult, requires high capital and time investment, and implementation progress may fall short of expectations.