The pharmaceutical index rebounded in February, outperforming the market
In February, pharmaceutical biology rose 3.98% year-on-year, outperforming the market. Among them, the biological products industry rose the most by 54.5%; The pharmaceutical business sub industry rose by at least 1.57%.
Summary of industry views in February
February is the first month of the lunar new year. The overall pharmaceutical performance surpasses the market, with biological products (vaccines) and medical services (CXO) as the leading sub industries. The market still prefers sub industries with high growth and less policy pressure. In February, there was still no clear long-term main line for investment. Under the background of the existing payment system, the market was more worried about the long-term growth trend of the pharmaceutical sector. With the liberalization of covid-19 control in various countries around the world and the continuous spread of covid-19 epidemic in China, covid-19 related tests and drugs are relatively active sectors, but it is still difficult to form relatively stable investment opportunities.
Pharmaceutical investment strategy in March
In March, the annual report was intensively released, and the market paid more attention to the annual report performance and the expectation of the first quarter report. Over the past two years, the market has fluctuated greatly with the epidemic. We believe that the pharmaceutical sector will enter the normal development stage after the epidemic from 2022. Therefore, the high growth in the first quarter may become a leading indicator.
As a national life and health security system to solve people’s livelihood, the pharmaceutical industry is one of the most concerned focuses of the two sessions, and the degree of attention has increased since covid-19. The 2022 government work report also specifically proposes to improve the medical and health service capacity, make up for the shortcomings of medical services such as maternity, children and the elderly, and promote the development of traditional Chinese medicine. The subdivided industries are expected to continue to benefit, and the policy catalyzes the rapid development. It is suggested to focus on it.
Legendary creature sidakiolensea has been approved by FDA, and cell therapy in China is rising day by day
Recently, the legendary biological car-t product targeting BCMA, carvykti, was officially approved by FDA. It is the first car-t product approved to be listed in the United States in China. We believe that the approved listing of carvykti has epoch-making milestone significance for China’s cell gene therapy industry: the success of legendary biology in promoting R & D and commercialization through cooperation with major international pharmaceutical enterprises has not only pointed out a relatively feasible path for China’s innovative drugs to go to sea, but also greatly encouraged and boosted the morale of China’s innovative drug industry. In addition to legendary biology, other biotechnology companies in China’s cell therapy industry, such as Cinda biology / reindeer medical, Yaoming junuo and Keji pharmaceutical, have also received good news recently, and China’s cell therapy is rising day by day.
Monthly gold shares in March
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ): a multi category, multi market and multi-level comprehensive instrument leader, after covid-19, it will enjoy the acceleration of global layout and the business cycle of China’s new infrastructure, and its performance can grow continuously and stably. The company has adjusted to the bottom range of multi-year valuation, corresponding to the closing price on March 4. The valuations from 2022 to 2023 are 36x and 28x respectively, maintaining the “buy” rating.
Humanwell Healthcare (Group) Co.Ltd(600079) ( Humanwell Healthcare (Group) Co.Ltd(600079) ): in the era of centralized mining, refined hemp drugs have the attribute of high barrier and good industrial competition pattern; The demand for narcotic drugs is driven by the growth of operation volume, comfortable diagnosis and treatment and other factors; The refocusing process continued, the debt ratio improved and the financial expenses decreased. Corresponding to the closing price on March 4, the valuations from 2022 to 2023 are 18x and 15x respectively, maintaining the “buy” rating.
Risk tips
Covid-19 epidemic recurrence risk; Trade friction exceeded expectations; Policy risk
