Core view
Biweekly performance of the sector: in the past two weeks, the CSI 300 index rose by 1.92%, the pharmaceutical and biological (Shenwan) index rose by 1.98%, the relative income compared with the CSI 300 was 0.06%, and the industry ranked 20th. Since the beginning of 2022, the CSI 300 index has fallen by 5.85%, and the pharmaceutical and biological (Shenwan) index has fallen by 13.25%, which is - 7.4% higher than the excess return of CSI 300. The overall rise and fall ranks 25th in the industry. In terms of molecular sectors, seven Shenwan pharmaceutical sub industries have basically increased in the past two weeks, among which SW medical device II, SW medical commercial II and SW chemical agents have the largest increase, up 2.76%, 2.13% and 1.93% respectively, and SW medical service II has the last increase, up 0.09%.
Weekly tracking of individual stocks: 1) from the perspective of the rise and fall of individual stocks: from the perspective of the rise and fall of individual stocks, 267 stocks in the pharmaceutical industry A-Shares (including the science and Innovation Board) rose positively and 162 stocks fell in the past two weeks. The top five stocks in the past two weeks were Hybio Pharmaceutical Co.Ltd(300199) (+ 45.86%), Shenzhen Yhlo Biotech Co.Ltd(688575) (+ 36.51%), Asahi Biology (+ 31.40%), Zjamp Group Co.Ltd(002758) (+ 26.79%) and Contec Medical Systems Co.Ltd(300869) (+ 22.84%). The top five stocks with declines in recent two weeks are Hob Biotech Group Corp.Ltd(688656) (- 14.96%), * ST Haiyi (- 14.32%), Northland (- 12.61%), Lude medical (- 12.28%) and Guobang Pharma Ltd(605507) (- 11.84%). 2) Lu Gutong's shareholding: in the past two weeks, the total net sales of northbound funds were 2.388 billion yuan, including 4.625 billion yuan of inflow and 7.013 billion yuan of outflow. From the position of land stock connect, the top five holdings are Tasly Pharmaceutical Group Co.Ltd(600535) , Shenzhen Lifotronic Technology Co.Ltd(688389) , Frontier Biotechnologies Inc(688221) - u, Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Nanjing Hicin Pharmaceutical Co.Ltd(300584) . The top five holdings reduction are Acrobiosystems Co.Ltd(301080) , Hainan Poly Pharm.Co.Ltd(300630) , Shinva Medical Instrument Co.Ltd(600587) , Lanzhou Foci Pharmaceutical Co.Ltd(002644) , Shanghai Kaibao Pharmaceutical Co.Ltd(300039) . 3) Block transactions: in the past two weeks, 33 companies in the pharmaceutical and biological industry have had block transactions, with a total transaction amount of 2.061 billion yuan. The top five block transactions are Pharmaron Beijing Co.Ltd(300759) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Shanghai Zj Bio-Tech Co.Ltd(688317) , Wuhan Easy Diagnosis Biomedicine Co.Ltd(002932) , Sansure Biotech Inc(688289) .
Sector valuation level: the PE (TTM) valuation of the pharmaceutical and biological sector has reached 30.2x in the past two weeks, which is still lower than the average pe37.5 in the past five years 94X。 In the past two weeks, the valuation of the sector remained stable and still at a historically low level, which was lower than the industry's average PE in recent five years for 33 consecutive weeks. Since the beginning of the year, the sector valuation has been further explored. The quantile of PE (TTM) valuation has reached 12.66% in recent 5 years (2017 / 2 / 18-2022 / 2 / 18) and 9.05% in recent 10 years (2017 / 2 / 18-2022 / 2 / 18), which has been at a historically low level. Compared with the same industry, the premium rate of pe-ttm in the pharmaceutical and biological sector relative to all A-Shares excluding finance is 7.38%, and the premium rate relative to CSI 300 is 129.5%.
Industry highlights: 1) discover the future investment direction of A-Shares from the "14th five year plan" for pharmaceutical industry development; 2) Just announced! The seventh batch of 208 national procurement specifications, and the bid opening is imminent; 3) The hospital plan is set! Branch Hospital, Medical Association / medical community, traditional Chinese medicine, geriatrics It concerns all pharmaceutical enterprises; 4) Gumetinib tablets, a c-met inhibitor of Haihe drug, is to be included in the priority review; 5) Treat biliary tract cancer! Baiji Shenzhou zw25 for injection is planned to be included in the breakthrough treatment varieties.
China's HPV vaccine market has a broad space. It is suggested to pay attention to HPV vaccine targets with consumption attributes.
1) HPV vaccine is the only vaccine for cancer prevention in the world, with a broad market space;
2) the market penetration of HPV vaccine in China is low and the potential space is huge;
3) HPV vaccination is actively promoted in all parts of China, or a large-scale period may come.
Investment proposal and investment object
It is suggested to pay attention to: Wantai Biology (603392, not rated), Zhifei Biology (300122, not rated), Hengrui medicine (600276, not rated), Wuxi Apptec Co.Ltd(603259) (603259, not rated), Brightgene Bio-Medical Technology Co.Ltd(688166) (688166, not rated), Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) (002020, buy), Beijing Balance Medical Technology Co.Ltd(688198) (688198, buy), Beijing Labtech Instruments Co.Ltd(688056) (688056, buy), etc.
Risk tips
The R & D, promotion and listing of new drugs were less than expected, the industry volume procurement policy was more than expected, and the epidemic broke out again
