One week’s view: the Chinese medicine sector has frequent favorable policies, and the sector is expected to benefit in the long term
On January 26, 2022, the State Council issued the opinions on supporting Guizhou to break a new path in the western development in the new era, which was beneficial to the relevant traditional Chinese medicine enterprises in Guizhou. The one belt, one road development plan (one belt, one road) was launched in December 31, 2021 by the State Administration of traditional Chinese medicine. It put forward the “14th Five-Year” period, and co operated with the “one belt and one road” country to build 30 high-quality Chinese medicine overseas centers, promulgated 30 international standards for Chinese medicine, and created 10 brand names of overseas Chinese medicine culture dissemination projects. The 2021 countries were also responsible for the development of 10 Chinese medicine culture centers. Build 50 international cooperation bases of traditional Chinese medicine, build a number of national export bases of traditional Chinese medicine services, and strengthen the construction of overseas registration service platforms for traditional Chinese medicine products. On December 30, the national medical insurance bureau and others jointly issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, which was fully beneficial to the traditional Chinese medicine sector.
One week’s view: retail pharmacies are expected to usher in an inflection point of revenue and profit growth in 2022
In 2021, affected by the epidemic situation and policies, the profit cycle of retail pharmacies was extended by an average of 1-3 months, and the influencing factors were mainly short-term factors. With the upgrading of national epidemic control and the increase of vaccination rate, the epidemic situation is expected to be controlled; The application cycle of national designated medical insurance qualification will gradually become consistent, and the switching of medical insurance system will be gradually completed; Major pharmacies are expected to return to normal when their operation returns to a steady state. It is expected that the proportion of old stores and secondary new stores of retail pharmacies will increase in 2022, which is expected to usher in an inflection point of revenue and profit growth.
One week’s view: in line with the policy trend, many tracks in the medical device sector are expected to usher in large quantities
With the advancement of the new medical reform, some policies such as unified consumables coding, centralized procurement of consumables and DRG / Dip medical insurance payment have had a far-reaching impact on the medical device industry. Chinese manufacturers keep up with the pace of national medical reform, look for deterministic tracks, actively promote technological upgrading, innovation iteration and domestic substitution, and actively seek opportunities to go to sea. (1) Under the DRG / Dip + graded diagnosis and treatment policy, the testing equipment is expected to be in large quantity, such as x-ray imager; (2) Under the maternity policy, the market of maternal and Child Rehabilitation examination is expected to usher in a second boom, such as rehabilitation equipment, color Doppler ultrasound, etc; (3) Influenced by the aging of population structure, the improvement of health awareness, the improvement of medical quality and technological progress, the in vitro diagnosis industry and household medical equipment show a rapid development trend; (4) The innovative surgery market focuses on the vascular intervention and electrophysiological surgery market with low domestic production rate, large import substitution opportunities and continuous prosperity; (5) Life science polymer consumables suppliers benefit from centralized procurement and volume increase and globalization. The polymer consumables industry has a high-quality ODM business model, and its performance will usher in a large-scale period.
Recommended and beneficial objects
Recommended targets: Henan Lingrui Pharmaceutical Co.Ltd(600285) , Tasly Pharmaceutical Group Co.Ltd(600535) , Xiangyumedicalco.Ltd(688626) , Pharmablock Sciences (Nanjing) Inc(300725) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Apeloa Pharmaceutical Co.Ltd(000739) , Sino Biological Inc(301047) (the above ranking is not in order).
Beneficiary objects: Youcare Pharmaceutical Group Co.Ltd(688658) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Chinese traditional medicine, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , gushengtang, Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) , Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) , Yunnan Baiyao Group Co.Ltd(000538) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Lianying medical treatment, Beijing Wandong Medical Technology Co.Ltd(600055) , Autobio Diagnostics Co.Ltd(603658) , Guangzhou Wondfo Biotech Co.Ltd(300482) , minimally invasive Siasun Robot&Automation Co.Ltd(300024) , Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Shenzhen Lifotronic Technology Co.Ltd(688389) , minimally invasive medical treatment, Lepu Medical Technology (Beijing) Co.Ltd(300003) , Shanghai Kindly Enterprises Development Group Co.Ltd(603987) medical equipment, Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) , Xinwei medical treatment, Kontour(Xi’An) Medical Technology Co.Ltd(688314) .
Risk tip: the black swan incident and the deterioration of the epidemic situation in the industry affect production and operation.
