Today (January 4), the Chinese medicine sector made a good start on the first day of 2022. By the end of the closing, the sector index had risen by more than 4%, and 17 stocks had trading limits, including Zhejiang Xinguang Pharmaceutical Co.Ltd(300519) 20cm trading limit, Kunming Longjin Pharmaceutical Co.Ltd(002750) 9-day 8-board, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) 4-board, Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Beijing Tongrentang Co.Ltd(600085) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Jilin Zixin Pharmaceutical Industrial Co.Ltd(002118) 2-board.
the favorable industrial policies continued to catalyze, and undervalued stocks ushered in rapid repair
In December, incentive policies for the traditional Chinese medicine industry were released one after another. On December 30, the State Medical Security Bureau and the State Administration of traditional Chinese Medicine issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine. The opinions put forward that it is required to include qualified pieces of traditional Chinese medicine, proprietary Chinese medicine and traditional Chinese medicine preparations of medical institutions into the catalogue of Medicare drugs. Meanwhile, according to recent news from the State Administration of traditional Chinese medicine, seven provinces, including Shanghai, Zhejiang, Jiangxi, Shandong, Hunan, Guangdong and Sichuan, have been approved to build the first national demonstration zone for comprehensive reform of traditional Chinese medicine.
Minsheng Securities pointed out that the “dual channel” of medical insurance promotes the sales of Chinese patent medicine inside and outside the hospital, the market space is expected to be further upward, and some Chinese patent medicine products with high net interest rate are expected to bring high performance and 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.
In addition to the continuous positive policy, the recent intensive price increase of traditional Chinese medicine products is also expected to improve the profit space of enterprises, and the undervalued value of the industry is expected to be repaired. Zhongtai Securities Co.Ltd(600918) pointed out that the policy continues to actively encourage the development of traditional Chinese medicine. At the beginning of the year, the State Council issued several policies and measures on accelerating the characteristic development of traditional Chinese medicine, which defined the state’s determination to encourage the development of traditional Chinese medicine at multiple levels and in multiple directions. The acceleration of the approval and listing of new traditional Chinese medicine since this year also confirmed the great strength of policy support. At present, traditional Chinese medicine enterprises are generally at a low historical valuation. The valuation of most companies corresponds to only 10-20 times PE in 22 years, with prominent configuration value.
Kunming Longjin Pharmaceutical Co.Ltd(002750) promoted to the ninth consecutive board, and nearly half of the stocks rose 30% in recent January
Recently, the trend of traditional Chinese medicine sector has been strong, and individual stocks have increased significantly. According to the rise and fall in recent one month, as of today’s (January 4), the share prices of Gansu Longshenrongfa Pharmaceutical Industry Co.Ltd(300534) , Kunming Longjin Pharmaceutical Co.Ltd(002750) , Jinghua Pharmaceutical Group Co.Ltd(002349) have more than doubled, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) has increased by 85%, Hubei Jumpcan Pharmaceutical Co.Ltd(600566) , Zhejiang Jolly Pharmaceutical Co.Ltd(300181) has increased by more than 60%, Chongqing Taiji Industry (Group) Co.Ltd(600129) , Chongqing Pharscin Pharmaceutical Co.Ltd(002907) , Shanghai Kaibao Pharmaceutical Co.Ltd(300039) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) have increased by more than 50%, and nearly half of the concept stocks have increased by more than 30% in recent one month.
Among them, Kunming Longjin Pharmaceutical Co.Ltd(002750) rose the most sharply. As of today’s (January 4) closing, it successfully recorded nine consecutive boards. It is reported that Kunming Longjin Pharmaceutical Co.Ltd(002750) is mainly engaged in modern Chinese patent medicine and characteristic chemical generic drugs. On December 21, Hubei pharmaceutical price and bidding procurement management service network released the publicity of the results of the proposed selection of centralized procurement of Chinese patent medicine by the inter provincial alliance, and Kunming Longjin Pharmaceutical Co.Ltd(002750) breviscapine products for injection are proposed to be selected. According to the company’s announcement, breviscapine for injection is the core product, and the sales revenue of this product accounts for about 26.54% of the company’s operating revenue in the first three quarters of 2021 (about 99.40% after deducting the revenue from pharmaceutical wholesale business), accounting for about 87.74% of the company’s operating revenue in 2020.
In addition to Kunming Longjin Pharmaceutical Co.Ltd(002750) , Beijing Tongrentang Co.Ltd(600085) , Sichuan Kelun Pharmaceutical Co.Ltd(002422) , Zhejiang Conba Pharmaceutical Co.Ltd(600572) and other listed companies of traditional Chinese medicine also plan to be selected. AVIC Securities pointed out that on December 21, the results of the proposed centralized procurement and selection of inter provincial alliance of Chinese patent medicines were issued. The average decline of Chinese patent medicines was about 42%, and the highest decline was the ginkgo leaves of Sichuan Senke Pharmaceutical Co., Ltd., with a price drop of 82.63%. From the results of the current inter provincial alliance of Chinese patent medicines, this centralized purchase belongs to the regional pilot of the follow-up nationwide centralized purchase of Chinese patent medicines, and the price reduction range is generally lower than that of the previous national centralized purchase of chemical drugs, consumables and biological drugs, further catalyzing the rising market of the traditional Chinese medicine sector.
In terms of core benefit targets, Minsheng Securities pointed out that under the policy drive, the traditional Chinese medicine industry has ushered in a golden period of standardized development. Under the trend of consumerism and modernization of traditional Chinese medicine, China’s traditional Chinese medicine market is expected to expand, identify high-quality traditional Chinese medicine brands and pay attention to leading enterprises of traditional 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 particles Chinese traditional medicine, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) , and the first listed chain organization of traditional Chinese medicine service gushengtang .
(Financial Associated Press)
