On December 24, the traditional Chinese medicine sector continued to rise, including the "20cm" limit of Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) , Dali Pharmaceutical Co.Ltd(603963) , Kunming Longjin Pharmaceutical Co.Ltd(002750) , and the "10cm" limit of Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Hubei Jumpcan Pharmaceutical Co.Ltd(600566) increased by more than 8%.
In an interview with Securities Daily, Hu Qimu, chief researcher of Sinosteel Economic Research Institute, said: since January 2019, due to the impact of industry policies and terminal sales data, the traditional Chinese medicine sector has been significantly lower than the pharmaceutical index and other sub sectors. From the perspective of valuation, the Chinese medicine sector is at a historical low. In the case that the current hot spot is not particularly clear, there is a demand for valuation and repair in the traditional Chinese medicine sector. In addition, from the perspective of seasonal factors, when the temperature drops sharply every winter, there is actually a demand for traditional Chinese medicine, and the market of drinking and taking medicine often appears in the fourth quarter.
"In addition, traditional Chinese medicine enterprises intensively released the bid winning news of volume procurement. The event trigger, coupled with their own demand for valuation and repair, coupled with the support of medium and long-term national policies, jointly contributed to the rebound of the traditional Chinese medicine sector." Hu Qimu further said.
It is worth mentioning that in terms of policy, traditional Chinese medicine, as a kind of drugs with Chinese characteristics, has been heavily supported by policies. For example, in February 2021, the State Council issued several policies and measures on accelerating the characteristic development of traditional Chinese medicine, on June 30, the National Health Commission and other joint systems issued the opinions on Further Strengthening the work of traditional Chinese medicine in general hospitals and promoting the coordinated development of traditional Chinese and Western medicine, and on July 7, the five departments jointly formulated the implementation plan for the dissemination of traditional Chinese medicine culture (2021-2025).
Pan Helin, executive director of Digital Economy Research Institute of Central South University of economics and law, said in an interview with Securities Daily: "policy support has promoted the development of traditional Chinese medicine industry and further consolidated the position of traditional Chinese medicine in China Meheco Group Co.Ltd(600056) industry."
Xiangcai Securities pointed out in the research report that policy support is the most favorable factor for the development of traditional Chinese medicine industry. 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.
China Securities Co.Ltd(601066) Securities said that the state vigorously develops the cause of traditional Chinese medicine, adheres to the combination of traditional Chinese medicine and Western medicine, inheritance and innovation, and the number of innovative traditional Chinese medicine approved reached a new high in 2021. Since the outbreak of covid-19 in 2020, traditional Chinese medicine has fully participated in the epidemic prevention, control and treatment, showing a positive role. At the national policy level, it promotes the construction of medical capacity of traditional Chinese medicine, increases talent training, and promotes the society's reasonable understanding of traditional Chinese medicine, which is conducive to the development of traditional Chinese medicine consumer goods industry.
As for the future market of traditional Chinese medicine, Hu Qimu believes that, "After the market of traditional Chinese medicine plate starts, it should last for a period of time. In the short term, it is a high cold season, and there is a large-scale cooling in the country recently, which will also boost the market from the aspect of actual demand. From the medium and long term perspective, there is still a valuation repair period in the traditional Chinese medicine plate, so the future market of traditional Chinese medicine plate can be expected.".
For traditional Chinese medicine enterprises, with the start of the plate market, which enterprises will benefit? Hu Qimu believes that "the first category is the head of traditional Chinese medicine enterprises, which have strong R & D ability and convert actual orders into profits after winning the bid in centralized procurement; the second category is pharmaceutical enterprises with unique competitive advantages in subdivided fields, such as Chinese time-honored brands and enterprises with specific secret recipes, which have very good brand value".
In Pan Helin's view, "In the current society as a whole, traditional Chinese medicine enterprises are polarized. Some traditional Chinese medicine has changed to consumer goods, with prices gradually rising and materials gradually scarce. The future growth trajectory of such enterprises is similar to that of consumer enterprises, such as Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) and Dong-E-E-Jiao Co.Ltd(000423) wait. Another part of traditional Chinese medicine belongs to basic medicine and will continue to expand sales through medical insurance channels. The state has certain care and support for the medical insurance procurement of traditional Chinese medicine, so pharmaceutical enterprises included in the procurement of drugs with quantity will benefit ".
Huaan Securities Co.Ltd(600909) analyst Tan Guochao said, "In terms of industry trends, with the encouragement of top-level design and policies, the market of traditional Chinese medicine will still show a steady growth trend. However, in recent years, under the background that the traditional Chinese medicine industry is also strengthened by policies and is about to enter national mining, the reshuffle of the traditional Chinese medicine industry has been irreversible. In the face of the upcoming great changes in the industry, it is imperative for traditional Chinese medicine enterprises to accelerate diversified transformation. In the direction of transformation, one of them is to change In the field of large-scale health, the synergy effect is the best and the effect is the fastest. The most direct benefit is the traditional Chinese medicine enterprises with strong brand, which build a "big health industry" through brand extension.
(Securities Daily)
