Key investment points:
This week, SW pharmaceutical and biological industry lost the CSI 300 index. From January 24 to January 28, 2022, the SW pharmaceutical and biological industry index fell by 6.83%, the fourth decline, about 2.32 percentage points lower than the CSI 300 index in the same period. All segments of SW pharmaceutical and biological industry recorded negative returns, with biological products, medical services, APIs, pharmaceutical commerce, medical devices, traditional Chinese medicine and chemical pharmaceuticals falling by 5.42%, 5.75%, 5.80%, 6.46%, 7.00%, 7.08% and 8.26% respectively.
This week, the pharmaceutical and biological industry saw a significant net outflow. From January 24 to January 28, 2022, the net outflow of land stock connect was 26.071 billion yuan, including 15.465 billion yuan from Shanghai Stock connect and 10.606 billion yuan from Shenzhen Stock connect. In the Shenwan industry, the net inflow of public utilities is the first, and the net outflow of medicine and biology is the first. This week, the pharmaceutical and biological industry had a net outflow of 4.128 billion yuan, a significant increase over last week.
Industry news: on February 3, Europa news agency reported that since the British Prime Minister announced the cancellation of some restrictions related to covid-19 virus in England, Finnish Prime Minister Marin also announced that all covid-19 epidemic restrictions would be lifted in mid February. Earlier, Denmark, Norway, the Netherlands and France also cancelled many anti infection measures taken last winter.
Maintain the recommended rating of the industry. In the past two weeks, the pharmaceutical and biological industry has experienced a large decline, mainly due to the recent increase in the market’s concern about the policy risk of the pharmaceutical and biological industry. With the seventh batch of national mining coming soon, the sectors and individual stocks greatly affected by the policy are still expected to be suppressed. It is suggested to pay attention to the policy immunization sector, such as maintaining a good advantage of CXO leaders, such as Wuxi Apptec Co.Ltd(603259) (603259), Hangzhou Tigermed Consulting Co.Ltd(300347) (300347), Pharmaron Beijing Co.Ltd(300759) (300759), Joinn Laboratories (China) Co.Ltd(603127) (603127), Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821), Kyushu Pharmaceutical (603456), Porton Pharma Solutions Ltd(300363) (300363), etc. Scientific services, focusing on Sino Biological Inc(301047) (301047), Nanjing Vazyme Biotech Co.Ltd(688105) (688105), etc. Medical devices: focus on platform faucet Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760), medical beauty faucet Imeik Technology Development Co.Ltd(300896) (300896), pharmaceutical equipment faucet Tofflon Science And Technology Group Co.Ltd(300171) (300171) and Truking Technology Limited(300358) (300358), rehabilitation medical device faucet Xiangyumedicalco.Ltd(688626) (688626), Nanjing Vishee Medical Technology Co.Ltd(688580) (688580), etc. In the short term, retail pharmacy leaders Dashenlin Pharmaceutical Group Co.Ltd(603233) (603233), Yifeng Pharmacy Chain Co.Ltd(603939) (603939), Yixintang Pharmaceutical Group Co.Ltd(002727) (002727), Lbx Pharmacy Chain Joint Stock Company(603883) (603883) are expected to benefit from the dual channel of negotiated drugs and usher in an inflection point. The policy side of the traditional Chinese medicine industry is relatively friendly. It is suggested to pay attention to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436), Yunnan Baiyao Group Co.Ltd(000538) (000538), Beijing Tongrentang Co.Ltd(600085) (600085), Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) (600332), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) (000999), Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) (002603), etc. with brand value and exclusive product advantages.
Risk tips: repeated epidemics, research and development failures, intensified industry competition, policy risks, product safety and quality risks, etc.
