CITIC Securities: The pharmaceutical industry is expected to continue to maintain an overweight position.

The CITIC Securities research report points out that looking ahead to the medical investment trend in 2026, whether it is the concentrated realization of Chinese pharmaceutical companies in the innovation field or the implementation of a series of industry support policies such as supporting innovative drugs and devices, optimizing centralized procurement, and promoting commercial insurance, both internal and external catalytic factors of the medical and health industry are expected to continue. The medical and health industry is gradually returning to a market pricing system that is based on clinical value and demand orientation, bringing a stable and sustainable domestic pharmaceutical market environment and the main development theme of long-term growth. Listed companies are also expected to usher in a continuous and stable trend of performance growth, bringing industry growth certainty. The pharmaceutical industry is expected to continue to maintain an overweight position, and it is suggested to layout around the following main themes in 2026: 1. Innovation-driven and internationalization- focusing on innovation-driven and internationalization-related targets in the domestic policy environment against internal competition; 2. Independent and controllable; 3. New policies and new atmosphere- benefiting from centralized procurement optimization, the three payment methods under medical insurance, consumption stimulus policies and targets related to SOE reform.