Monthly core view in February. February entered the annual report disclosure season of A-share listed companies. As of February 18, 19 performance letters, 226 performance forecasts, more than 70% of the companies were pre happy, 75 doubled their net profits and 55 made losses. 241 pharmaceutical enterprises disclosed their performance in the same period last year, more than 60% were pre happy, 74 doubled their net profits and 44 made losses. Recently, many European countries announced that they coexist with covid-19 virus, “vaccine + covid-19 drug” is still the main means of anti epidemic in the future. The new proposal continues to focus on investment opportunities in the field of vaccines and covid-19 drugs, and key companies include Chongqing Zhifei Biological Products Co.Ltd(300122) (300122), Walvax Biotechnology Co.Ltd(300142) (300142), Cansino Biologics Inc(688185) (688185), Shenzhen Kangtai Biological Products Co.Ltd(300601) (300601), Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) (603392) Shanghai Junshi Biosciences Co.Ltd(688180) （688180）； With the approval of covid-19 drugs for listing, it is a necessary condition to ensure the supply of raw materials and production capacity. Enterprises related to the supply of covid-19 drug raw materials also deserve special attention, such as Zhejiang Cheng Yi Pharmaceutical Co.Ltd(603811) (603811), Zhejiang Nhu Company Ltd(002001) (002001), Nanjing Hicin Pharmaceutical Co.Ltd(300584) (300584), Jiangxi Fushine Pharmaceutical Co.Ltd(300497) (300497); 2) The development of innovative drugs has entered a breakthrough innovation stage, and the valuation of CXO has been adjusted a lot. With the disclosure of the annual report, we can continue to pay attention to the investment opportunities of CXO. It is suggested to focus on Joinn Laboratories (China) Co.Ltd(603127) (603127).
Market review: in January (from January 1 to January 31, 2022), Shenwan biomedical industry index fell by 13.87%, while Shanghai and Shenzhen 300 fell by 6.28% in the same period, losing Shanghai and Shenzhen 3007.59 percentage points. The overall performance of the industry ranked second from the bottom among the 28 Shenwan industry indexes, a sharp drop from the previous month.
Valuation analysis of pharmaceutical industry. From the PE trend of Shenwan biomedical index in recent ten years, as of February 8, 2022, the dynamic PE of the industry was 30.12 times, which was at a relatively low level in recent 10 years and fluctuated compared with last month. Due to the normalization trend of epidemic prevention and control, the investment grade of the industry “synchronized with the big market” was rated. However, different sub industries are also divided.
Risk tip: the epidemic situation and virus variation exceed expectations, Sino US political risk and national policy change risk.
