This week, SW pharmaceutical and biological industry outperformed the Shanghai and Shenzhen 300 index. From February 14 to February 18, 2022, SW pharmaceutical and biological industry index rose by 4.85%, ranking the third in Shenwan primary industry, outperforming the CSI 300 index by about 3.76 percentage points in the same period. All segments recorded positive earnings. Among them, medical services rose by 12.59%, led by the strong rebound of CXO; Medical devices, APIs, chemicals, traditional Chinese medicine, biological products and pharmaceutical businesses increased by 5.67%, 3.58%, 2.52%, 1.99%, 1.98% and 0.78% respectively. About 81% stocks in the industry recorded positive earnings, and CXO stocks performed strongly.
The pharmaceutical and biological industry had a net outflow of 1.48 billion this week. From February 14 to February 18, 2022, the land stock connect had a net outflow of 2.399 billion yuan, of which the Shanghai Stock connect had a net inflow of 3.15 billion yuan and the Shenzhen Stock connect had a net outflow of 5.549 billion yuan. In the Shenwan industry, the net inflow of transportation ranks first. This week, the pharmaceutical and biological industry had a net outflow of 1.48 billion yuan, ranking first in the Shenwan first-class industry, with a decrease compared with last week.
Industry news: China began to deploy sequential immunization. After the implementation of the sequential immunization strategy, the target population of Sinopharm Zhongsheng Beijing company, Wuhan company and Beijing Kexing company can be vaccinated in the whole process, and the recombinant protein vaccine of zhifeilongkema or Cansino Biologics Inc(688185) adenovirus vector vaccine can also be selected for sequential immunization. Since February 18, 2022, the joint procurement office has carried out the filling of drug information related to the centralized drug procurement organized by the seventh batch of countries. The current round of national collection involves 58 varieties and 208 quality regulations, which include cardiovascular, diabetes, cancer, antibiotics, neuropsychiatric and so on. China's Dalian locks have been gearing up last year to speed up the layout of "double channel" pharmacies; This year, we will continue to increase dual channel medical insurance Qualification Access with the help of our own network and layout advantages.
Maintain the recommended rating of the industry. The industry valuation has been repaired recently, but on the whole, it is still lower than the valuation center in recent years and is still at a relatively reasonable level. The valuation repair is expected to continue. It is suggested to pay attention to CXO Wuxi Apptec Co.Ltd(603259) (603259), Porton Pharma Solutions Ltd(300363) (300363), Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821), Hangzhou Tigermed Consulting Co.Ltd(300347) (300347), Pharmaron Beijing Co.Ltd(300759) (300759), Joinn Laboratories (China) Co.Ltd(603127) (603127), Kyushu Pharmaceutical (603456), etc., which are expected to remain good; Domestic leading scientific service providers with low substitution rate Sino Biological Inc(301047) (301047), Nanjing Vazyme Biotech Co.Ltd(688105) (688105), etc; The platform type equipment faucet Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760), Yimei 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) whose valuation fell back to a reasonable range; Domestic vaccine leaders Chongqing Zhifei Biological Products Co.Ltd(300122) (300122), Cansino Biologics Inc(688185) (688185), Shenzhen Kangtai Biological Products Co.Ltd(300601) (300601), Walvax Biotechnology Co.Ltd(300142) (300142), etc; Leading brands of traditional Chinese medicine Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436), Yunnan Baiyao Group Co.Ltd(000538) (000538) that are expected to benefit from consumption upgrading in the medium and long term; Chain medical leaders Aier Eye Hospital Group Co.Ltd(300015) (300015), Topchoice Medical Co.Inc(600763) (600763) that are expected to benefit from aging and consumption upgrading in the medium and long 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 usher in an inflection point.
Risk tips: repeated epidemics, research and development failures, intensified industry competition, policy risks, product safety and quality risks, etc
