The national health insurance policy strongly supports traditional Chinese medicine, and traditional Chinese medicine has started a long cycle of development. The national health insurance policy strongly supports the development of traditional Chinese medicine. Traditional Chinese medicine has started a long development cycle, and proprietary Chinese medicine / traditional Chinese medicine decoction pieces / traditional Chinese medicine services are expected to take the lead in benefiting. On December 30, 2021, the State Medical Insurance Bureau and the State Administration of traditional Chinese medicine jointly issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, setting the tone for the payment of traditional Chinese medicine and medical insurance, and integrating Chinese patent medicine / traditional Chinese medicine decoction pieces / traditional Chinese medicine services into the medical insurance payment system according to the actual situation.
With the support of the new deal, the formula particle market is expected to expand and enter a high-speed and large-scale period. Under the policy support, the market expansion of traditional Chinese medicine formula granules is partially included in the medical insurance payment. Under the dual advantages of market expansion and medical insurance payment, traditional Chinese medicine formula granules are expected to enter a high-speed and large-scale period. Traditional Chinese medicine formula granules belong to the category of decoction pieces of traditional Chinese medicine. With decoction pieces of traditional Chinese medicine as raw materials, they are processed through multiple steps such as water extraction, separation, concentration, drying, granulation and packaging to make new formula drugs with unified specifications, dose and quality standards, so as to maintain the efficacy of traditional Chinese medicine decoction pieces, avoid the trouble of frying and boiling, and give full play to the advantages of traditional Chinese medicine syndrome differentiation and treatment.
The “dual channel” of medical insurance promotes the sales of Chinese patent medicine, with high performance elasticity. The “dual channel” of medical insurance promotes the sales of Chinese patent medicine inside and outside the hospital, and the market space is expected to further increase. Some Chinese patent medicine products with high net interest rate are expected to bring high performance elastic growth to the enterprise. With the support of medical insurance, Chinese patent medicine is expected to usher in joint growth in the market inside and outside the hospital. Chinese patent medicine products with exclusive varieties, high brand barriers and strong innovation ability are expected to usher in rapid volume, so as to realize the rapid growth of enterprise sales. Superimposed on the price rise of Chinese patent medicine products, the performance of some enterprises with high profit products has high elastic growth space.
Investment suggestion: driven by policies, the Chinese medicine industry has ushered in a golden period of standardized development. Under the trend of consumerism and modernization of Chinese medicine, the Chinese medicine market is expected to expand, identify high-quality Chinese medicine brands and pay attention to leading enterprises of Chinese medicine. It is suggested to pay attention to the leading enterprises of traditional Chinese medicine Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Beijing Tongrentang Co.Ltd(600085) , Jianmin Pharmaceutical Group Co.Ltd(600976) with exclusive varieties, strong innovation ability and strong attributes of consumer goods, the leading enterprises of traditional Chinese medicine formula granules, Chinese traditional medicine, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , and gushengtang, the first listed chain of traditional Chinese medicine medical services in China.
This week’s stock recommendations focus on Portfolio:
Growth Portfolio: Pharmablock Sciences (Nanjing) Inc(300725) , Beijing Balance Medical Technology Co.Ltd(688198) , Eyebright Medical Technology(Beijing) Co.Ltd(688050)
Robust combination: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Baicheng pharmaceutical
Elastic combination: Chongqing Taiji Industry (Group) Co.Ltd(600129) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Tianjin Chase Sun Pharmaceutical Co.Ltd(300026)
Risk tips: risk of policy changes in the pharmaceutical industry; The risk of declining medical consumption demand; Risk of centralized purchase; Other systemic risks.
