Key investment points
Government work report: medical insurance per capita should be further improved, and grasp the principle of “holding manufacturing and welcoming innovation”
On March 5, 2022, Premier Li Keqiang delivered a government work report to the fifth session of the 13th National People’s Congress on behalf of the State Council. Among them, with regard to medical, health and scientific services in 2022, the following points are mainly mentioned: ① increase the standard of medical subsidies and strengthen the payment capacity of medical insurance: increase the per capita financial subsidy standard of residents’ medical insurance and basic public health services by 30 yuan and 5 yuan respectively, so as to promote the provincial overall planning of basic medical insurance. Promote the centralized procurement of drugs and high-value medical consumables to ensure production and supply. Strengthen the quality and safety supervision of drugs and vaccines. We will deepen the reform of medical insurance payment methods and strengthen the supervision of medical insurance funds. Improve the direct settlement method for cross provincial and remote medical treatment, and realize the basic unification of the scope of medical insurance drugs in the country.
② adhere to prevention first, speed up graded diagnosis and treatment, and support the revitalization and development of rare diseases and traditional Chinese medicine: gradually improve the service guarantee level of prevention and treatment of cardiovascular and cerebrovascular diseases, cancer and other diseases, and strengthen the drug guarantee of rare diseases. We will improve the disease prevention and control network, do a good job in the construction of public health teams, and improve the ability of major epidemic monitoring and early warning, flow regulation and traceability, and emergency response. We will deepen the reform of public hospitals and standardize the fees and services of medical institutions. Support the revitalization and development of traditional Chinese medicine and promote the comprehensive reform of traditional Chinese medicine. Focus on promoting hierarchical diagnosis and treatment and optimizing the order of medical treatment, accelerate the construction of national and provincial regional medical centers, promote the extension of high-quality medical resources to cities and counties, and improve the ability of grass-roots disease prevention and treatment.
③ focus on cultivating “specialization and innovation” and promoting manufacturing upgrading: promote the stable operation of industrial economy, strengthen the supply guarantee of raw materials and key parts, implement the project of ensuring and stabilizing the chain of leading enterprises, and maintain the safety and stability of the supply chain of the industrial chain. Focus on cultivating “specialized and special new” enterprises, and give strong support in terms of capital, talents and incubation platform construction. Promote the construction of a quality power and promote the industry to move towards medium and high-end.
We believe that the government’s work plan for 2022 shows that China has continued to strengthen its efforts in the line of “ensuring basic and wide coverage” of medical insurance; The government has accelerated the reform of graded diagnosis and treatment and public hospitals; Strengthening the independent control of the industrial chain and “grasping manufacturing and welcoming innovation” remain the main investment line of the pharmaceutical sector in 2022.
Performance this week: covid-19 related sectors are still the most concerned by the market
The pharmaceutical sector rose 0.01% this week, outperforming the CSI 300 index by 1.69 percentage points, ranking 12th in all industries. In terms of trading volume, the turnover of the pharmaceutical industry this week was 473 billion yuan, accounting for 9.8% of the total turnover of all a shares, an increase of 0.8% over the previous week, and 1.6pct higher than the central level since 2018. As of March 5, 2022, the overall valuation of the pharmaceutical sector (historical TTM, overall method, excluding negative values) was 29.58 times, down 0.4 PCT month on month, significantly lower than the central level since 2011 (pe38 times). The valuation premium rate of the pharmaceutical industry relative to the CSI 300 was 139%, down 3.2pct from the previous week, significantly lower than the central level in the past four years (182.3%).
According to the classification of wind CITIC medicine, the differentiation of eight sub sectors was obvious this week, with pharmaceutical circulation (up 4.5%) and chemical raw materials (up 3.4%) leading the rising sectors. Medical services (- 2.3%) and medical devices (- 1.4%) fell significantly. Considering that the classification of CITIC pharmaceutical involves the cross business of some companies, among the key companies of Zheshang pharmaceutical, the adjustment of Hong Kong stocks is more obvious affected by the overseas situation, including viabio (down 14.9%) and Fangda Holdings (down 14.3%). In terms of business segment, characteristic APIs (up 6.0%) continued to rise, and medical devices performed better (up 2.3%) driven by covid-19 test. In the specialty API sector, Zhejiang Ausun Pharmaceutical Co.Ltd(603229) (up 20.7%), Aurisco Pharmaceutical Co.Ltd(605116) (up 12.5%), Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) (up 10.01%) increased significantly; Among medical devices, Guangdong Hybribio Biotech Co.Ltd(300639) (up 13.2%), Berry Genomics Co.Ltd(000710) (up 10.1%) and Guangzhou Wondfo Biotech Co.Ltd(300482) (up 9.2%) increased significantly. In addition, Realcan Pharmaceutical Group Co.Ltd(002589) (up 16.0%) and Jointown Pharmaceutical Group Co.Ltd(600998) (up 8.5%) also led the increase in pharmaceutical circulation.
Pharmaceutical investment strategy in 2022: grasp manufacturing and welcome innovation
We suggest that investors should break the “core assets” and “sector concept” so that they can look at the investment opportunities in the upstream and manufacturing links with the industrial chain thinking, and the innovative pharmaceutical machinery will continue to survive the fittest during the transition period. We believe that in 2022, medicine should adhere to the investment strategy of “grasping manufacturing and welcoming innovation”.
Specifically, it is recommended to focus on:
1) manufacturing sector: API, cdmo and other subdivided fields, recommended Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Apeloa Pharmaceutical Co.Ltd(000739) , Wuxi Apptec Co.Ltd(603259) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Porton Pharma Solutions Ltd(300363) , Hainan Poly Pharm.Co.Ltd(300630) , etc.
2) upstream: the upstream: pharmaceutical equipment, reagents, consumables, and other fields of pharmaceutical equipment, reagents, and consumables, and the upstream: the upstream: the fields of pharmaceutical equipment, reagents, consumables, and so on, and the fields of pharmaceutical equipment, reagents, and so on, and the fields of pharmaceutical equipment, reagents, and consumables, and the upstream: the upstream: the upstream: the fields of pharmaceutical equipment, reagents, consumables, and so on, and the fields of pharmaceutical equipment, and so on, and the fields of pharmaceutical equipment, reagents, and consumables, and so on, and the fields of pharmaceutical equipment, such as the fields of pharmaceutical equipment, and so on, and the recommendations are recommended for senszonzonzonzonpine international, and the Tofflon Science And Technology Group Co.Ltd(300171) Tofflon Science And Technology Group Co.Ltd(300171) Tofflon Science And Technology Group Co.Ltd(300171) Shanghai Titan Scientific Co.Ltd(688133) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Qingdao Novelbeam Technology Co.Ltd(688677) etc.
(3) the company’s ability to innovate, and the company’s ability to innovate .
4) others: Other: consumer attributes, medical services, innovative supporting industry companies, medical services, and innovative supporting industry companies, recommending companies with consumer attributes, medical services, and innovative supporting industries, recommending companies with Hangzhou Tigermed Consulting Co.Ltd(300347) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ etc.
Risk tips
Changes in industrial policies; The price reduction of core products exceeded expectations; R & D progress is less than expected.
