Weekly report of pharmaceutical and biological industry: deployment of the two sessions to improve medical and health service capacity

Key investment points:

This week, SW pharmaceutical and biological industry outperformed the Shanghai and Shenzhen 300 index. From February 28 to March 4, 2022, SW pharmaceutical and biological industry rose by 0.18%, ranking the tenth in Shenwan primary industry, outperforming the Shanghai and Shenzhen 300 index by about 1.86 percentage points in the same period. Among the industry segments, API, pharmaceutical commerce and chemical pharmacy increased by 5.47%, 5.39% and 2.62% respectively, while traditional Chinese medicine, biological products, medical devices and medical services decreased by 0.33%, 0.65%, 1.03% and 1.83% respectively.

This week, the pharmaceutical and biological industry had a net inflow of 370 million yuan. From February 28 to March 4, 2022, the land stock connect had a net inflow of 4.274 billion yuan, of which the Shanghai Stock connect had a net inflow of 5.035 billion yuan and the Shenzhen Stock connect had a net outflow of 761 million yuan. In the Shenwan level industry, the net inflow of non-ferrous metals and power equipment ranks first, and the net outflow of non bank finance, automobile and food and beverage ranks first. This week, the pharmaceutical and biological industry had a net inflow of 370 million yuan, ranking the tenth in the net inflow of Shenwan primary industry, with a decrease compared with last week.

Industry valuation. As of March 4, 2022, the overall PE (TTM, overall method, excluding negative value) of SW pharmaceutical and biological industry was about 28.9 times, slightly lower than that of last Friday. The current valuation is lower than the valuation center of the industry since 2012, at the quantile of 78%; The overall PE premium rate relative to CSI 300 is 132.8%, which is 61% of the central premium rate of the industry relative to CSI 300 since 2012.

Maintain the recommended rating of the industry. The government work report of the two sessions made arrangements for the work tasks in the field of medical and health care, focusing on improving the ability of medical and health services, including 12 work contents. Generally speaking, the work deployment continues the national policy guidance in the field of medical and health, and is in line with expectations as a whole. Suggestion concern: it's expected to benefit from the medical device leader Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ ( Acrobiosystems Co.Ltd(301080) ), Shanghai Aladdin Biochemical Technology Co.Ltd(688179) ( Shanghai Aladdin Biochemical Technology Co.Ltd(688179) ), etc, The medical beauty leader Imeik Technology Development Co.Ltd(300896) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ ( Hangzhou Tigermed Consulting Co.Ltd(300347) ), etc; Chain medical leaders Aier Eye Hospital Group Co.Ltd(300015) ( Aier Eye Hospital Group Co.Ltd(300015) ), Topchoice Medical Co.Inc(600763) ( Topchoice Medical Co.Inc(600763) ), which are expected to benefit from aging and strong endogenous growth momentum; Domestic vaccine leaders Chongqing Zhifei Biological Products Co.Ltd(300122) ( Chongqing Zhifei Biological Products Co.Ltd(300122) ), Shenzhen Kangtai Biological Products Co.Ltd(300601) ( Shenzhen Kangtai Biological Products Co.Ltd(300601) ), Changchun Bcht Biotechnology Co(688276) ( Changchun Bcht Biotechnology Co(688276) ) with strong R & D ability and expected to rebound; Beijing Tongrentang Co.Ltd(600085) ( Beijing Tongrentang Co.Ltd(600085) ), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ( China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ), Yunnan Baiyao Group Co.Ltd(000538) ( Yunnan Baiyao Group Co.Ltd(000538) ), etc. are expected to benefit from the policy of traditional Chinese medicine.

Risk tips: policy risks, repeated epidemics, lower than expected R & D progress, intensified industry competition, product safety and quality risks, etc.

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