Pacific Securities' research report pointed out that the stable profit of generic drug companies provides a safety margin for the company's valuation. Coupled with the transformation of innovation, there is hope for valuation reshaping, and going abroad may open up a growth ceiling. Suggestions for attention: 1) Companies with mature products, strong academic promotion ability, and good future performance certainty, such as Fuyuan Pharmaceuticals; 2) Companies with innovative drug pipelines entering the cashing stage and large valuation repair elasticity, such as Zhejiang Jingxin Pharmaceutical and Yifan Pharmaceutical.