Northeast Securities: Innovative drug BD and commercialization continue to fulfill CXO expectations, and traditional sectors have bottomed out at an inflection point

The Zhitong Finance App learned that Northeast Securities released a research report saying that the overseas innovative drug industry continues to be booming, and domestic pharmaceutical companies are expected to accept dividends. The 2026H1 performance of many innovative pharmaceutical companies has exceeded expectations. This is confirmed by the semi-annual results of CXO sector companies and further confirms the sector's mid-term industry trend. The pharmaceutical retail sector is in a phase where supply clearance and weak recovery are intertwined. Leading companies continue to seize share with their advantages of scale, and high dividend attributes provide some defensive value. At the stage where traditional Chinese medicine collection and digestion are intertwined with cost improvement, OTC brand leaders show resilience, and high dividend attributes provide certain defensive value.

The main views of Northeast Securities are as follows:

Innovative drug sector: The overseas innovative drug industry continues to be booming, and domestic pharmaceutical companies are expected to accept dividends

Pharma relied on multiple paths to achieve steady revenue growth, and Biotech unleashed performance flexibility through BD and commercialization. 2023-2026H1, Head Pharma mainly relies on the three types of pathways of replication innovation, product launch, and core single product release to achieve steady revenue expansion. The revenue scale of companies such as Hengrui Pharmaceutical, Shiyao Group, and China Biopharmaceutical continues to expand; BioTech's revenue elasticity mainly comes from BD authorized down payment confirmation and product commercialization volume. Companies such as Cinda Biotech and Rongchang Biotech have accelerated markedly in recent years, and some companies have completed the leap from R&D Biotech to commercial companies.

CXO sector: orders are growing rapidly, and the industry has entered a new upward cycle

Currently, domestic and foreign biomedical investment and financing continue to pick up, domestic innovative drug financing has increased dramatically, policies support the development of the innovative drug industry in various aspects, and the CXO industry has entered a new upward cycle. Demand for circuit segments such as GLP-1 and ADC is strong, and qualified production capacity is becoming increasingly scarce. The 2026H1 performance of many innovative pharmaceutical companies has exceeded expectations. This is confirmed by the semi-annual results of CXO sector companies and further confirms the sector's mid-term industry trend.

Innovative device sector: innovation first, accelerated entry and breakthroughs in hard-core technology platformization

After refining and reversing, it is time for the sector to base up and configure. The equipment sector peaked twice in 2015 and 2020-2021. After years of deep adjustments, the current valuation point is low, and it has continued to bottom out since 2024. Risk release is sufficient, fundamentals have been marginally improved, valuation repair space has been established, sector chips are clean, and attention is paid to the structural repair market in the medical device sector.

Medical service sector: Single hospital business model stabilizes, capital expenditure returns to main line

Leading companies have strong business resilience, and the current pure endogenous growth rate of ophthalmology services has stabilized at a medium single-digit level. In order to maintain the trend of business expansion, some companies have initiated a new round of capital expenditure, and the expansion of overseas business is expected to become the core main line of the company's subsequent growth. The current proposal focuses on companies with overseas expansion plans.

Pharmaceutical retail sector: revenue growth continues to recover, profit side is divided

The 2026H1 pharmaceutical retail sector presents a pattern of “continuous recovery in revenue growth and profit differentiation”. On the revenue side, leading companies maintained positive growth, and the trend of increasing industry concentration was clear; profit side performance varied greatly, reflecting differences in store operating efficiency and category structure. Q2 The revenue of most companies rebounded slightly month-on-month. Currently, the sector is in a phase where supply clearance and weak recovery are intertwined. Leading companies continue to seize share with their advantages of scale, and high dividend attributes provide some defensive value.

Chinese medicine sector: revenue growth is under pressure, profits are significantly divided

The 2026H1 Chinese medicine sector presents a pattern of “revenue growth under pressure and profit differentiation significantly”. On the revenue side, the hospital's various enterprises are clearly under pressure. In 26Q2, most companies' profits were under month-on-month pressure, and the variety in the hospital was significantly affected by the full collection coverage of the fourth batch of proprietary Chinese medicines. Currently, the sector is at a stage where collection and digestion are intertwined with cost improvement. Brand OTC leaders are showing resilience, and high dividend attributes provide certain defensive value.

Risk warning: policy risk, R&D and competition risk, product risk and overseas risk, etc.