Industry Review
During the reporting period, the pharmaceutical and biological industry index decreased by 1.29%, ranking 24th among the 31 first-class industries in Shenwan, Underperformed the CSI 300 index (+ 1.10%). In terms of sub industries, offline pharmacies, medical equipment, hospitals and vaccines ranked first among the tertiary pharmaceutical and biological industries, with increases of 7.87%, 2.99%, 2.23% and 1.57% respectively. In terms of valuation, as of December 17, 2021, the PE (TTM overall method, excluding negative values) of the pharmaceutical and biological industry was 32.97x (33.33x in the previous period). Pharmaceutical and biological Shenwan tertiary industry: API, chemical agents, traditional Chinese medicine, blood products, vaccines, other biological products, pharmaceutical circulation, offline pharmacies, medical equipment, medical consumables, in vitro diagnosis, diagnostic services, medical R & D outsourcing, hospitals and other medical services (TTM overall method, excluding negative values) are 35.6x, 32.2x, 30.2x, 36.8x, 35.0x, 32.8x, 12.0x, 30.3x, 48.2x, 19.4x, 20.3x, 23.2x, 80.0x, 84.7x and 97.5x respectively.
During the reporting period, the shareholders of 40 listed companies in the pharmaceutical and biological industries in the two cities reduced their net holdings by 4.253 billion yuan. Six of them increased their holdings by 65 million yuan and 34 reduced their holdings by 4.318 billion yuan.
Important industry information
Kexing: preliminary research shows that the positive rate of neutralizing Omicron antibody by strengthening needle is 94%
China’s first independent intellectual property covid-19 virus neutralizing antibody combination therapy drug approved
The national medical insurance bureau announced 32 DRG / Dip payment demonstration sites
Investment suggestions:
With the official release of the national medical insurance catalogue in 2021, the centralized purchase of national drugs and high-value consumables continues to be promoted and normalized and institutionalized, and the three-year action plan for DRG / Dip payment method reform is officially released. In the future, quality and cost control will still be the main theme of the pharmaceutical policy. During the reporting period, the overall valuation of the pharmaceutical industry sector is still lower than the historical average level and slightly higher than the negative double standard deviation level. The current valuation has significant allocation advantages. We suggest increasing the allocation proportion of the industry and paying attention to investment opportunities in four aspects: first, drugstore chain companies with reasonable valuation and stable recovery; The second is the CXO industry, which has undergone in-depth adjustment recently. Against the trend, it pays attention to companies with sufficient orders and reasonable current valuation; Third, focus on the target of high-quality white horse stocks with better than expected performance in the third quarter; Fourth, pay attention to the consumer medical section. Under the background of medical insurance fee control, the ophthalmology and dental sub industries with consumption attribute have policy immunity, and consumption upgrading will drive their development.
Risk tips:
The performance release of medical insurance negotiation varieties is less than expected; Covid-19 epidemic situation is repeated; Policy uncertainty.
