According to the Tianfeng Securities Research Report, the second growth curve contributes more and national reforms drive improvements in endogenous efficiency, and the pharmaceutical distribution sector is expected to usher in a valuation repair. The valuation of the distribution sector has been low for a long time, mainly due to factors such as the normalization of pharmaceutical volume procurement, etc.; leading companies have actively explored new business formats in recent years, and new, more profitable businesses such as the pharmaceutical industry, pharmaceutical retail, and CSO have grown brilliantly, which is expected to substantially drive an increase in profit levels; at the same time, the new round of national reform focuses on improving profitability, and distribution companies, mainly state-owned enterprises, are expected to usher in valuation repairs. It is recommended to focus on national distribution companies with extensive regional coverage and leading state-owned enterprises with greater flexibility: Kyushu Express, Sinopharm, Liuyao Group, Shanghai Pharmaceutical, China Resources Pharmaceutical, and Heavy Pharmaceutical Holdings.