China Securities Co.,Ltd. released the investment strategy for the Traditional Chinese Medicine and Pharmaceutical Commerce Industry in 2025. Traditional Chinese Medicine: The industry order is gradually recovering, the base effect is weakening, and with the catalyst of State-owned Enterprise Reform, there are opportunities for valuation improvement. Bullish on brand Traditional Chinese Medicine companies with high recognition, it is recommended to pay attention to excellent Traditional Chinese Medicine OTC enterprises, and it is also suggested to focus on leading Traditional Chinese Medicine prescription drug companies. Retail Sector: The industry shows marginal improvement and is expected to gently recover in 2025: 1) The impact of individual accounts is weakening, and overall planning is expected to accelerate implementation; 2) The impact of medical insurance inspections is controllable; 3) The industry is gradually clearing out, and competition is becoming more relaxed; 4) Loss-making stores are gradually being eliminated, and the profits of leading enterprises are expected to accelerate growth. Pharmaceutical circulation: The market scale is steadily expanding, and there is a significant trend of marginal improvement.