The epidemic situation in China has been repeated, and the main line of covid-19 has attracted more attention. According to the data disclosed by the Health Commission, China reported 1938 new confirmed cases on March 12. There are obvious repeated outbreaks in many places in China, and the main line of covid-19 is expected to get renewed attention: 1. The approval and use of the antigen for covid-19 is expected to be followed: 1. The approval and approval of the antigen for covid- 19 and the implementation of the policy on the detection and use of the antigen for covid-19 will be followed by the landing of the policy on the ground, paying attention to the already approved Shenzhen V&T Technologies Co.Ltd(300484) 8482 etc, The upstream raw material manufacturer of antigen detection reagent, Feipeng Biology (antigen antibody), North Chemical Industries Co.Ltd(002246) (NC membrane), etc. 2. (potential) covid-19 oral drug industry chain: Wuxi Apptec Co.Ltd(603259) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) , Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , China Meheco Group Co.Ltd(600056) , etc. 3. Covid-19 vaccine booster: Chongqing Zhifei Biological Products Co.Ltd(300122) etc.
General view of the industry: the valuation pressure is gradually released, and the performance of the industry is not pessimistic. After early adjustment and digestion, the pressure of overestimation in the pharmaceutical sector has been gradually released, and we are not pessimistic about the performance of the industry. From the perspective of the whole year, we are still optimistic about: ① investment opportunities in life science and upstream industrial chain: API ( Apeloa Pharmaceutical Co.Ltd(000739) , Zhejiang Starry Pharmaceutical Co.Ltd(603520) etc.), Life Science (novozan, etc.), upstream of pharmaceutical industrial chain ( Tofflon Science And Technology Group Co.Ltd(300171) , Truking Technology Limited(300358) , Zhejiangtailin Bioengineering Co.Ltd(300813) ), upstream of instrument industrial chain ( Iray Technology Company Limited(688301) , Qingdao Novelbeam Technology Co.Ltd(688677) ); ② The internationalization ability of innovative pharmaceutical head companies represented by Cinda biology, Jiangsu Hengrui Medicine Co.Ltd(600276) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) etc; ③ CXO industry: it is promising for a long time. It is suggested to focus on integrated companies with strong international ability ( Wuxi Apptec Co.Ltd(603259) , Yaoming biology, Pharmaron Beijing Co.Ltd(300759) ), cdmo ( Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Kyushu pharmaceutical, etc.), CGT CXO (Kingsley biotechnology, Heyuan biology, etc.); ④ Others: vaccine leaders ( Chongqing Zhifei Biological Products Co.Ltd(300122) , Cansino Biologics Inc(688185) ), pharmacies, traditional Chinese medicine and blood products industries with underestimated value.
Review of A-share market: medicine outperformed the market as a whole this week, and IVD and pharmaceutical distribution performed well. This week, the medical index fell by 2.07%, the wandequan a index fell by 3.96%, and the medical index outperformed the market by 1.89%. Since 2022, the overall medical index has underperformed the market by 1.44%. In terms of sub industries, IVD (+ 5.25%) and pharmaceutical distribution (+ 3.24%) sub industries performed well this week.
Review of Hong Kong Stock Market: medicine lost the market as a whole this week, while traditional Chinese medicine and biopharmaceutical fell slightly. This week, Hang Seng healthcare fell 10.11%, the Hang Seng Index fell 6.17%, and Hang Seng healthcare lost 3.94% of the market as a whole. Since 2022, Hang Seng healthcare has lost 15.35% of the overall market. In terms of sub industries, the sub industries of traditional Chinese medicine (- 3.57%) and biopharmaceutical (- 3.65%) decreased slightly this week.
Risk warning: the progress of the epidemic exceeded expectations and affected the operation of enterprises; Centralized purchase and medical insurance cost control policies are stricter than expected; The competition intensity of subdivided industries is higher than expected; The progress of new drug research and development is less than expected; The performance of the enterprise is lower than expected.
