Today (February 25), the performance of pharmaceutical and medical related sectors was strong, with the collective rise of cro concept, medical services, medical devices, medical beauty and covid-19 prevention line. In terms of individual stocks, as of the closing, Chengda pharmaceutical, Guangzhou Wondfo Biotech Co.Ltd(300482) and Asahi biological had a 20 cm limit, Hangzhou Alltest Biotech Co.Ltd(688606) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , Beijing Hotgen Biotech Co.Ltd(688068) , Hangzhou Biotest Biotech Co.Ltd(688767) , Shanghai Medicilon Inc(688202) rose by more than 10%, and geriatric gas stocks Aba Chemicals Corporation(300261) continued to rise, up 12%. In addition, Hefu China, a recently listed covid-19 prevention and control stock, continued to rise by one word limit, and has won eight consecutive boards as of today.
Hefu China won the 8-day limit
On February 16, Hefu China landed on the main board of Shanghai Stock Exchange, with an issue price of 4.19 yuan / share and an issue price earnings ratio of 22.99 times, slightly higher than the industry price earnings ratio of 18.74 times. It is reported that Hefu China is a channel provider in the field of medical circulation. Its molecular diagnostic products are mainly nucleic acid detection related reagents. In 2020, nucleic acid detection reagents related to covid-19 epidemic were provided to hospitals through centralized procurement by the government. The company expects that in 2021, the revenue will increase by 9.24% to 14.70% year-on-year, and the net profit will increase by 8.92% to 14.37% year-on-year.
Due to the low issue price and the good mood of new shares recently, Hefu China rose 43.91% on the first day of listing. Based on 500 shares signed, it can make a profit of nearly 900 yuan on the first day. In the following seven trading days, Hefu China continued to raise the limit without opening the board. As of the close of today (February 23), the share price has risen 180% compared with the issue price. If it has been held so far, it can make a total profit of nearly 3700 yuan based on 500 shares.
Covid-19 prevention and control sector where Hefu China is located has also gradually stopped falling and stabilized recently, with a slight recovery. Central China Securities Co.Ltd(601375) believes that many European countries have recently announced the coexistence with covid-19 virus, “vaccine + covid-19 drug” is still the main means of anti epidemic in the future. The new proposal continues to pay attention to the investment opportunities in the field of vaccine and covid-19 drugs. With the approval and listing of covid-19 drugs, it is necessary to ensure the supply of raw materials and production capacity, For covid-19 pharmaceutical raw material supply, relevant enterprises also deserve special attention.
medicine enters the medium and long-term layout range
At the beginning of this year, the pharmaceutical sector as a whole fell sharply, among which the cro concept sector fell the most fiercely. In the 14 trading days from January 18 to February 11, the sector index fell nearly 23%. However, after entering the middle of February, pharmaceutical stocks began to repair gradually. Similarly, taking the cro sector as an example, as of today’s closing, the sector index has rebounded by nearly 15.7% in nearly 10 trading days. Among individual stocks, Chengda pharmaceutical has risen by 66%, with Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Joinn Laboratories (China) Co.Ltd(603127) , Porton Pharma Solutions Ltd(300363) rising by more than 30%, and Wuxi Apptec Co.Ltd(603259) , Jiangxi Fushine Pharmaceutical Co.Ltd(300497) , Chempartner Pharmatech Co.Ltd(300149) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) rising by more than 20%.
Note: performance of cro concept stocks in recent 10 trading days (closing on February 25)
Guosheng Securities believes that the core reason for the decline of medicine is the double high digestion of “high valuation” and “high chip concentration” after the bull market. In fact, after the decline in the first half of 2021 and the sharp decline in January 2022, “high valuation” has been greatly alleviated, and “medium high chip concentration” is also gradually alleviated. concerns about sectors and segments have been fully discussed. At present, there is no need to be pessimistic about the pharmaceutical index, and the downward risk is relatively controllable, but it is still dominated by the individual stock market. At this time, valuation and performance are the best tools to fight against emotional concerns, suggesting that pay attention to performance determination in the short term, and common sense valuation recognizes that exceeds the falling target. Core benefit targets:
1) consumption upgrading: vaccines ( Chongqing Zhifei Biological Products Co.Ltd(300122) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Chengdu Kanghua Biological Products Co.Ltd(300841) ); Selected traditional Chinese medicines ( Chongqing Taiji Industry (Group) Co.Ltd(600129) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Zhejiang Jolly Pharmaceutical Co.Ltd(300181) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) , Shandong Buchang Pharmaceuticals Co.Ltd(603858) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Beijing Tongrentang Co.Ltd(600085) , Zhejiang Conba Pharmaceutical Co.Ltd(600572) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ); Rehabilitation ( Ningbo Sanxing Medical Electric Co.Ltd(601567) );
2) manufacturing upgrading: upstream of biomedicine ( Tofflon Science And Technology Group Co.Ltd(300171) , Truking Technology Limited(300358) , Focused Photonics (Hangzhou) Inc(300203) ); Differentiated cdmo ( Porton Pharma Solutions Ltd(300363) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Wuxi Apptec Co.Ltd(603259) , Pharmaron Beijing Co.Ltd(300759) ); API systematic upgrade ( Zhejiang Starry Pharmaceutical Co.Ltd(603520) ); Injection outlet ( Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Hainan Poly Pharm.Co.Ltd(300630) ).
3) Innovation Upgrading: covid-19 small molecule & innovation internationalization ( Shanghai Junshi Biosciences Co.Ltd(688180) ); CGT ( Porton Pharma Solutions Ltd(300363) , Northland, Zhejiangtailin Bioengineering Co.Ltd(300813) ); Nuclear drug ( Yantai Dongcheng Biochemicals Co.Ltd(002675) ).
