Hexun Investment Advisor Zeng Yuhao: Innovative drugs are just the beginning; in April, attention should still be paid to consumption

On March 31, Hexun Investment Advisory’s Zeng Yuhao said that below 4,000 points, which sector has a big opportunity—I’ve been emphasizing it for a week. Why did the entire pharmaceutical sector, especially innovative drugs, lead the whole market over the past week, and today it has even seen a major breakout? The line I said in my video yesterday is the best answer: when the index is oscillating in the 3,800–4,000 point range, buy on dips in two low-risk weight sectors—finance, looking at brokerages; and consumption, looking at innovative drugs—one is responsible for offense and the other for defense. To put it bluntly, if these two sectors can’t break out, then for now, don’t play A-shares.

Innovative drugs have only been rising for a few days, and many people think about taking profits early. But what the main force wants is a clear “high-to-low” rotation. In April, everyone should set aside other distractions and remember these three points: first, high-level big tech has been torturing retail investors; second, with 2 trillion yuan in trading value, high-priced stocks will only bleed slowly; third, this month is earnings season, and the market style is naturally unfavorable to tech stocks. Innovative drugs, however, combine the defensive attributes of consumption with the price elasticity of tech. So it’s not only steady, but its rally has also been fierce—just as everyone has seen: in the medical front row, the past few days alone have seen gains of 30 to 40 percentage points.

Some people question whether innovative drugs have performance. Actually, many people may not understand these figures: China’s innovative drug industry overseas licensing in the first quarter this year reached $60 billion; among 21 major global deals, 15 came from China; and multiple industry leaders turned losses into profits. Without even mentioning the leaders’ profitability, last year the 28 innovative drug companies on the STAR Market achieved their first overall profitability. In A-shares, 40 representative companies incurred a total loss of 18 billion yuan from 2022 to 2024, but in 2025 they recorded profits of 2.8 billion yuan, and the whole industry is trending positive. If you ignore these data, you’ll think innovative drugs lack sustainability. More importantly, when you open the K-line chart and look at the trend, from last August’s adjustment to this March, innovative drugs—and the entire pharmaceutical sector—over the course of more than half a year, fully became tech stocks’ “cash cow.” Now that tech stocks face phase pressure and the offense-defense dynamic has swapped, doesn’t the main force know that it should target a sector that’s looser in structure and healthier in terms of holdings?

So, it’s still the three lines I said yesterday: first, follow the slow bull and buy on dips in weight sectors; second, view the new energy track in extremes—only look at the best and the worst; third, the worst consumer expectations are actually the best.

(责任编辑：赵艳萍 HF094）

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