China Securities Co.,Ltd. research report pointed out that it is recommended to focus on investment opportunities in seven directions in the health care industry. 1) Pharmaceutical and innovative drugs: the revenue of the chemical pharmaceutical sector continues to climb, with significantly improved profits; representative companies' R&D expense ratio stabilizing overall, continuing to drive the company's transformation and upgrading through research and development; innovative drug companies rapidly commercialize, narrowing losses, and leading companies demonstrate outstanding cash on hand and stock performance. 2) CXO: affected by the high base number of the same period last year and the slowing downstream demand growth, the sector's growth rate has slowed down, with divergent orders from various companies. Conventional business and overseas orders remain relatively stable. 3) Medical devices: the weak base effect, the single-quarter revenue growth turning positive for the first time since Q1 of 23. Significant internal differentiation in the industry, overall better recovery of high-value consumables, the impact of centralized procurement on high-value consumables varies, and some varieties cleared show significantly faster profits; equipment declines overall due to delayed policy updates; IVD declines more, related to base numbers and policy disruptions. 4) Traditional Chinese medicine: the industry is under pressure from a high base and policy disruptions overall, but companies like China Resources Sanjiu Medical & Pharmaceutical, a leading OTC brand, exhibit outstanding performance. 5) Blood products: revenue steadily increases, profitability significantly improves, with high operational quality, still in a high prosperity stage. 6) Active pharmaceutical ingredients: industry supply and demand gradually return to normal rhythm, while companies within the sector actively promote the transformation of preparations and CDMO, contributing to performance growth. 7) Chain pharmacies: performance affected by multiple factors, operationally under pressure.