Key investment points
Market review: this week, the pharmaceutical and biological index rose 1.71%, outperforming the Shanghai and Shenzhen 300 index by 3.38 percentage points, and the rise and fall of the industry ranked sixth. Since the beginning of 2022, the pharmaceutical industry has fallen by 11.78%, 4.35 percentage points lower than the CSI 300 index, and the industry ranks 28th in terms of rise and fall. This week, the valuation level (pe-ttm) of the pharmaceutical industry was 29.22 times, with a premium rate of 87% (4.3pp) relative to all a shares, 41% (2.7pp) relative to all A-Shares excluding banks, and 133% (8pp) relative to CSI 300. In terms of pharmaceutical sub industry, nine sub industry sectors rose this week, and medical R & D outsourcing was the sub industry with the largest increase, up about 5.3%. Other biological products and API sub industries ranked the second and third with an increase of about 5.1% and 2.2% respectively. The sub industry with the smallest decline since the beginning of the year is in vitro diagnosis, down about 4.1%.
CXO continues to rebound, and overseas enterprises attach importance to the independent and controllable supply chain. This week, the pharmaceutical sector continued to warm up, mainly CXO continued to rebound, CXO has been adjusted relatively well, the valuation has entered a reasonable interval, and the 22 year performance of the CXO sector is expected to continue to grow faster. At the same time, this week, the White House released a news review on the strengthening effect of American supply chain management after executive act 14017 signed by Biden. The medical fields involved mainly include: 1) personal protective equipment and durable medical equipment: strengthen the independent control of raw materials of medical gloves, protective clothing and surgical masks to prevent counterfeit products from entering the American market. 2) In the field of test and diagnosis: increase the capital investment in the research and development of supplies for test kits, increase the interchangeability of test components, and improve the detection ability of covid-19. 3) Drugs and vaccines: solve the Chinese production capacity of API and key starting materials (KSM) of various drugs and reduce manufacturing costs; Expand the post vaccine packaging line and the manufacturing capacity of enzymes; Improve the end-to-end continuous production capacity of API and drugs through convenient and modular manufacturing platform and 3D printing technology. It is suggested that investors focus on: 1) the independent and controllable direction of the pharmaceutical industry chain, such as the equipment field; 2) Traditional Chinese medicine consumer goods with immune attribute of medical insurance; 3) Undervalued varieties with upward business trend.
Elastic combination this week: Shanghai Runda Medical Technology Co.Ltd(603108) ( Shanghai Runda Medical Technology Co.Ltd(603108) ), Chongqing Taiji Industry (Group) Co.Ltd(600129) ( Chongqing Taiji Industry (Group) Co.Ltd(600129) ), Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) ( Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) ), Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) ( Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) ), Truking Technology Limited(300358) ( Truking Technology Limited(300358) ), Haisco Pharmaceutical Group Co.Ltd(002653) ( Haisco Pharmaceutical Group Co.Ltd(002653) ).
This week’s robust combination: Jiangsu Hengrui Medicine Co.Ltd(600276) ( Jiangsu Hengrui Medicine Co.Ltd(600276) ), Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ), Baiji Shenzhou (688235), Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ( Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ( China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ), Topchoice Medical Co.Inc(600763) ( Topchoice Medical Co.Inc(600763) ).
Risk warning: drug price reduction risk; The implementation progress of medical reform policy is lower than the expected risk; Risk of R & D failure.
