According to Zhitong Finance APP, BOCOM INTL released a research report stating a "Leading" rating for the mainland pharmaceutical industry. Shanghai has issued a document proposing the establishment of a 10 billion yuan RMB Biomedical industry merger and acquisition Fund to promote the industry's innovative development and mergers and acquisitions; the bank believes this will help accelerate the industry's integration.

The bank pointed out that the pharmaceutical sector has slightly rebounded after significant fluctuations. Considering that the sector's valuation is still at a historical low, coupled with the forthcoming bullish policies on finance and medical insurance/commercial insurance + liquidity improvements, the bank believes there is still room for further recovery.

The bank continues to focus on recommending potential beneficiaries of subsequent policy space, including: AKESO (09926), Legend Biotech, EVEREST MED-B (01952) and other innovative drugs with abundant short-term catalysts, high profit growth or clear breakeven points, and significant valuation repair elasticity; SIMCERE PHARMA (02096), SINO BIOPHARM (01177) and other leading prescription drug companies with the potential for performance growth + valuation multiples to jointly recover.

At the same time, it is recommended to pay attention to: private medical services and medical beauty targets with strong Consumer attributes; as well as pharmaceutical commerce circulation targets with high dividend yields that are expected to benefit from the overall improvement of the industry's fundamentals.