: It is recommended to pay attention to targets in the consumer medical sector, such as traditional Chinese medicine and medical aesthetics, which are actively expanding their products. Also, the medical service sector, which has undergone a long period of adjustment.

Zhongtai Securities pointed out that grasping the structural opportunities in the medical sector, it is important to continue focusing on the medical/healthcare AI+ sector, which has positive fundamental changes and light institutional holdings. This week, the Shanghai and Shenzhen 300 Index rose by 0.36%, while the medical and biological sector fell by 0.81%, ranking 21st out of 31 primary sub-industries. This week, medical services rose by 0.22%, while chemical pharmaceuticals, biopharmaceuticals, medical devices, traditional Chinese medicine, and pharmaceutical commercial sectors fell by 0.54%, 0.89%, 1.07%, 1.75%, and 2.68% respectively. This week, the medical sector showed clear distinctions, with AI healthcare, small nucleic acid-related targets that have previously experienced significant corrections, and individual stocks with positive fundamental changes and light institutional holdings showing promising performance. It is believed that the medical sector, as both a technology and consumer-oriented sector, will continue to present structural opportunities in the market rotation. In terms of technological aspects, the innovative drug sector has gone through a sharp rise followed by a correction over the past year. Compared to the beginning of 2025, the valuations of most targets are reasonable. Therefore, it is recommended to focus on targets within specific industries and companies with positive fundamental changes and potential sustainability. Medical/healthcare AI+ is currently a trending direction with sustained popularity. In addition to focusing on industry leaders, it is also recommended to pay attention to companies whose main business is not related to medical/healthcare AI+, but are actively embracing related technologies and are expected to realize valuation elasticity in the short to medium term. In terms of consumer aspects, with the release of 2025 earnings forecasts nearing completion, which is already reflected in current stock prices, it is recommended to focus on targets in the traditional Chinese medicine, medical beauty, and other consumer healthcare sectors that are actively expanding their product offerings, as well as the medical services sector that has undergone a long period of adjustment.