Key points:
Traditional Chinese Medicine II rose 1.17% last week, the only rising sub sector
Last week, pharmaceutical biology closed at 11120.71 points, down 1.63%; Traditional Chinese Medicine II closed at 7455.14 points, up 1.17%; Chemical pharmaceuticals closed at 11761.66 points, down 2.41%; Biological products closed at 12699.97 points, down 2.24%; Pharmaceutical business closed at 5802.04 points, down 1.6%; Medical devices closed at 9380.79 points, down 1.11%; Medical services closed at 12797.9 points, down 2.47%. The overall correction of the pharmaceutical sector, and traditional Chinese medicine is the only rising sub sector.
From the performance of Companies in the traditional Chinese medicine sector, the top companies are: Jianmin Pharmaceutical Group Co.Ltd(600976) , Shaanxi Kanghui Pharmaceutical Co.Ltd(603139) , Guizhou Yibai Pharmaceutical Co.Ltd(600594) , Zhejiang Conba Pharmaceutical Co.Ltd(600572) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ; Companies with low performance include: Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) , Yabao Pharmaceutical Group Co.Ltd(600351) , Guangdong Taiantang Pharmaceutical Co.Ltd(002433) , Henan Taloph Pharmaceutical Stock Co.Ltd(600222) , Beihai Gofar Chuanshan Biological Co.Ltd(600538) .
Traditional Chinese medicine PE (TTM) increased by 0.37x month on month, and Pb (LF) increased by 0.04x month on month
Last week, the PE of traditional Chinese medicine plate was 32.04x, the maximum value of PE in recent year was 39.7x and the minimum value was 28.78x; The current Pb is 2.98x, the maximum value of Pb in recent year is 3.48x, and the minimum value is 2.57x. PE in traditional Chinese medicine sector increased by 0.37x month on month, and Pb increased by 0.04x month on month. The premium rate of traditional Chinese medicine plate relative to Shanghai and Shenzhen 300 was 143.56%.
The Chinese herbal medicine market continues to be stable and good, and the price is expected to continue to rise
Last week, the total price index of key tracked traditional Chinese medicine was 202.64 points, up 0.66 percentage points month on month. The Chinese herbal medicine market continues to break through the new high of the price index, and most herbal medicine varieties continue to rise. The overall market is stable and good. It is expected that the price is expected to continue to rise slightly in the later stage.
The new national medical insurance catalogue was released, and the expansion trend of Chinese patent medicine continued
The 2021 edition of the national medical insurance catalogue was published. A total of 74 drugs were added and 11 drugs were transferred out. The newly transferred drugs cover the needs of tumors, chronic diseases, anti infection, rare diseases and drugs for women and children. There are 2860 kinds of drugs in the new catalogue, including 1486 kinds of Western medicine, 1374 kinds of Chinese patent medicine and 892 kinds of traditional Chinese medicine. It can be seen that the trend of continuous expansion of Chinese patent medicine is still in progress.
We believe that policy support is the most favorable factor for the development of traditional Chinese medicine industry. Demand side, population aging, chronic diseases, cancer incidence rate rise, disease spectrum changes, as well as residents’ income level raise health awareness, consumption upgrading and other factors to support the demand for Chinese medicine industry healthy and stable growth. On the policy side, the state vigorously supports and promotes the development of traditional Chinese medicine, promotes the inheritance and innovation of traditional Chinese medicine, and adheres to the equal emphasis on traditional Chinese and Western medicine, which has brought policy dividends and new demand to the traditional Chinese medicine industry. The unique advantage of “preventing disease” brings development opportunities to the traditional Chinese medicine industry. On the performance side, the traditional Chinese medicine industry came out of the low point and showed marginal improvement. Although the single quarter performance growth rate decreased slightly in the third quarter of 2021 due to the weakening of the low base effect, it remained in the trend of recovery channel as a whole. On the valuation side, the traditional Chinese medicine industry has obvious absolute valuation advantages. “Policy + consumption upgrading + performance improvement + valuation advantage” jointly constructs investment opportunities for the traditional Chinese medicine industry. It is suggested to pay attention to the areas of policy encouragement and policy haven.
(1) Pay attention to the innovation of modern traditional Chinese medicine and the innovation targets of modern traditional Chinese medicine with strong R & D strength and large categories; (2) pay attention to brand traditional Chinese medicine, formula and raw material advantages, and jointly build a moat of brand traditional Chinese medicine; (3) benefit from consumption upgrading, and pay attention to the targets with industrial chain extension and strong brand advantages.
Risk statement
(1) Stricter industrial policies; (2) performance fluctuation risk of the industry and listed companies.
