On December 27, the traditional Chinese medicine sector continued to strengthen. As of the closing, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) rose by about 18.69%, and Gansu Longshenrongfa Pharmaceutical Industry Co.Ltd(300534) rose by about 12.24%. In addition, Hunan Fangsheng Pharmaceutical Co.Ltd(603998) , Teyi Pharmaceutical Group Co.Ltd(002728) , Jinghua Pharmaceutical Group Co.Ltd(002349) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Kunming Longjin Pharmaceutical Co.Ltd(002750) , Lanzhou Foci Pharmaceutical Co.Ltd(002644) , Dali Pharmaceutical Co.Ltd(603963) all rose by the limit.
Driven by the traditional Chinese medicine sector, the pharmaceutical sector rose across the board today, with pharmaceutical businesses up 4.67%, traditional Chinese medicine up 3.88% and chemical pharmaceuticals up 3.16%. In terms of individual stocks, Fujian Cosunter Pharmaceutical Co.Ltd(300436) , Shanhe medicine store, Honz Pharmaceutical Co.Ltd(300086) rose 20%, and Shanxi C&Y Pharmaceutical Group Co.Ltd(300254) rose 19.94%.
Some market participants like the blue whale financial reporter said that the standing of the traditional Chinese medicine plate at the tuyere may be related to the publicity of the results of the centralized procurement of Chinese patent medicines in 19 provinces and cities led by Hubei. The price reduction of this centralized procurement is relatively moderate, exceeding the market expectation, and there is no extreme situation in which the previously expected decline of group A is up to 90%. In addition, the policy side has been relatively friendly to the traditional Chinese medicine industry. Since this year, the policy side has released its support for traditional Chinese medicine. Another factor is that most of the industry’s subject-matter valuations are at historical low valuations and the configuration value is prominent. The superposition of multiple factors may be the reason for the continuous upward attack of the plate.
On the news side, on December 22, the results of the planned selection of centralized procurement of Chinese patent medicines in 19 provinces and cities led by Hubei were announced. Through the on-site competition, 97 enterprises and 111 products were selected, with a selection rate of 62%, an average decrease of 42.27% and a maximum decrease of 82.63%. Overall, the price of centralized procurement of chemical drugs was slightly warmer than that of centralized procurement of chemical drugs, and some products did not rise but fell. For example, the price of 10ml danxiang injection rose by 1737.5%.
After the announcement of the results of the proposed centralized procurement of traditional Chinese medicine, Kunming Longjin Pharmaceutical Co.Ltd(002750) , Guangxi Wuzhou Zhongheng Group Co.Ltd(600252) , Huadong Medicine Co.Ltd(000963) , Beijing Tongrentang Co.Ltd(600085) , Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) many listed companies quickly announced that relevant products were shortlisted. On December 22, the traditional Chinese medicine sector rose strongly, Kunming Longjin Pharmaceutical Co.Ltd(002750) , Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) and other stocks rose by the limit, Beijing Tongrentang Co.Ltd(600085) , Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Renhe Pharmacy Co.Ltd(000650) , Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) rose by more than 6%.
In terms of valuation repair, since the end of October this year, the index of the traditional Chinese medicine sector has been in a shock upward trend. In the past two months, 59 of the 70 stocks in the traditional Chinese medicine sector have risen, accounting for 84%. Among them, 37 rose by more than 10%, and 15 rose by more than 30%.
In terms of policies, since this year, the heavy support policies of the traditional Chinese medicine sector have continued. In February 2021, the State Council issued several policies and measures on accelerating the development of characteristics of traditional Chinese medicine; On June 30, the National Health Commission and others jointly formulated 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; On July 7, the five departments jointly formulated the implementation plan for the dissemination of traditional Chinese medicine culture (2021-2025).
According to incomplete statistics, since 2021, 11 innovative traditional Chinese medicines have been approved, and the approved new drugs are widely distributed in the field of disease treatment, covering many fields such as respiration, nerves, digestion and so on. The state has vigorously promoted the inheritance and innovation of traditional Chinese medicine. The number of innovative traditional Chinese medicine, whether applied for registration or approved, has reached a new high this year.
Everbright Securities Company Limited(601788) believes that the undervalued traditional Chinese medicine sector has the logic of stable growth of domestic consumption, policies to encourage high-quality development and continuous price increase. It has been widely recognized by the fund under the background of style switching at the end of the year. By combing the industrial policies and investment logic of proprietary Chinese medicine and traditional Chinese medicine formula particles, the traditional Chinese medicine industry has entered a high-quality development stage, waiting for performance realization and value revaluation. Under the policy encouragement, traditional Chinese medicine enterprises inherit and develop, traditional Chinese medicine innovative medicine enterprises usher in the high-speed period of examination and approval, and the traditional Chinese medicine formula granule industry embraces market expansion, standard improvement and quality improvement. It is suggested to pay attention to three types of investment opportunities in the industrial chain of traditional Chinese medicine: 1. OTC of brand Chinese patent medicine; 2. Traditional Chinese medicine formula granules; 3. Traditional Chinese medicine pharmaceutical equipment.
(blue whale Finance)
