Report summary
Affected by international environmental uncertainty, the Hang Seng Index fell 6.17% in a single week last week (from March 7, 2022 to March 11, 2022). The Hang Seng healthcare industry fell 10.64% in a single week, underperforming the Hang Seng Index by 4.47 percentage points, ranking the last among the 12 Hang Seng industries.
On March 11, the comprehensive group of the joint prevention and control mechanism of the State Council announced the application scheme for covid-19 virus antigen detection (Trial), comprehensively implemented the monitoring mode of “antigen screening and nucleic acid diagnosis”, added antigen detection as a supplement to the original nucleic acid detection, and the government issued the basic requirements and procedures for covid-19 virus antigen self-test. On March 13, the State Food and Drug Administration approved the change approval of five covid-19 antigen self-test products, with a total of 10 covid-19 antigen products approved for self-test and other non professional places, namely: Beijing huaketai, Nanjing Nanjing Vazyme Biotech Co.Ltd(688105) ( Nanjing Vazyme Biotech Co.Ltd(688105) . SH), Beijing jinwofu, Shenzhen Huada Yinyuan ( Bgi Genomics Co.Ltd(300676) , Bgi Genomics Co.Ltd(300676) . SZ), Guangzhou Guangzhou Wondfo Biotech Co.Ltd(300482) ( Guangzhou Wondfo Biotech Co.Ltd(300482) . SZ) 10 companies including Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) ( Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) . SH), Beijing Hotgen Biotech Co.Ltd(688068) ( Beijing Hotgen Biotech Co.Ltd(688068) . SH), booseth, Mingdao jietest, Lepu diagnosis ( Lepu Medical Technology (Beijing) Co.Ltd(300003) , Lepu Medical Technology (Beijing) Co.Ltd(300003) . SZ).
Antigen self-test products improve screening efficiency. There are three types of people suitable for antigen detection: (1) those who go to grass-roots medical and health institutions with respiratory tract, fever and other symptoms within 5 days. （2） Isolation and observation personnel, including personnel in home isolation and observation, close connection and secondary close connection, entry isolation and observation, sealing and control area and control area. （3） Community residents with antigen self-test needs. Antigen detection complements nucleic acid detection to improve screening efficiency. Antigen detection is generally used in the acute infection stage. The positive results can be used for early diversion and rapid management of suspected people, but they can not be used as the basis for diagnosis. At present, China’s epidemic prevention policy is still “dynamic clearing”. In the scene of large-scale screening, antigen detection can improve the ability of “early detection”.
For the relevant targets of Hong Kong stocks, Lizhu Pharmaceutical (1513. HK) is recommended. Lizhu reagent covid-19 antigen reagent, covid-19 nucleic acid detection PCR reagent and covid-19 neutralizing antibody reagent have successively obtained CE and other overseas access and registered in Germany, the United Kingdom, Austria, Thailand, Indonesia and other countries.
In addition, on March 10, the A-share listed company China Meheco Group Co.Ltd(600056) ( China Meheco Group Co.Ltd(600056) . SH) announced that it had signed a supply agreement with Pfizer, which would become the Chinese agent of paxlovid small molecule covid-19 oral medicine. It is recommended to pay attention to covid-19 oral small molecule drugs, including: Shanghai Junshi Biosciences Co.Ltd(688180) (1877. HK), Xiansheng Pharmaceutical (2096. HK), Kaifa pharmaceutical-b (9939. HK), Geli pharmaceutical-b (1672. HK), Frontier Biotechnologies Inc(688221) ( Frontier Biotechnologies Inc(688221) . SH), Fujian Cosunter Pharmaceutical Co.Ltd(300436) ( Fujian Cosunter Pharmaceutical Co.Ltd(300436) . SZ), etc.
Investment advice
While seizing the opportunity to repair the valuation of Hong Kong stocks, it is suggested to lay out the boom track and oversold core assets. In the future, it is suggested to focus on: 1) innovative drugs: the success of legendary biological cart approved by FDA is an excellent precedent for innovative drugs to go to sea. In the long run, pharmaceutical innovation is still the main theme. It is suggested to closely follow the progress of overseas clinical trials of relevant enterprises, Pay attention to the overseas market space of relevant potential varieties. It is suggested to pay attention to Xinda Biology (1801. HK), kangfang biology-b (9926. HK), etc. 2) Devices: the short-term market is pessimistic about the centralized purchase of devices, and the performance of relevant targets is relatively low; In the long run, there are many sub tracks in the sector. Sub tracks such as molecular diagnosis and minimally invasive Siasun Robot&Automation Co.Ltd(300024) have great potential, and leading enterprises and innovative enterprises have barriers. It is suggested to pay attention to the minimally invasive Siasun Robot&Automation Co.Ltd(300024) B (2252. HK), the high-quality target of Siasun Robot&Automation Co.Ltd(300024) -b, the target of cancer early screening, nuohui health-b (6606. HK), and Yingtong technology-b (2251. HK), the high-quality target of ophthalmic AI screening. 3) Medical services: the penetration rate of medical services is low and the demand growth prospect is broad. It is suggested to pay attention to haijiya medical (6078. HK), the first share of Hong Kong stock hair transplant Yonghe medical (2279. HK), etc. 4) CXO: at present, the valuation of CXO industry is relatively reasonable and has the cost performance of configuration. China’s industrial chain has global competitive advantages, benefiting from the growth of downstream demand at home and abroad, and the high prosperity of the industry can be sustained. In the long run, the integrated industry leaders Wuxi Apptec Co.Ltd(603259) (2359. HK), Pharmaron Beijing Co.Ltd(300759) (3759. HK; Pharmaron Beijing Co.Ltd(300759) . SZ) and Yaoming Biology (2269. HK) are recommended. 5) Vaccines and covid-19 therapeutic drugs: the epidemic cycle exceeded expectations. The epidemic situation in Hong Kong is serious, and the demand for epidemic prevention is still great. It is suggested to pay attention to Cansino Biologics Inc(688185) bio-b (6185. HK), clover bio-b (2197. HK) for vaccines and Shanghai Junshi Biosciences Co.Ltd(688180) (1877. HK) for covid-19 therapeutic drugs
Last week’s market review:
Affected by international environmental uncertainty, the Hang Seng Index fell 6.17% in a single week last week (from March 7, 2022 to March 11, 2022). The Hang Seng healthcare industry fell 10.64% in a single week, underperforming the Hang Seng Index by 4.47 percentage points, ranking the last among the 12 Hang Seng industries.
In terms of individual stocks, the top five stocks that rose were Kanghua medical (3689.hk, 26.76%), Wanjia group (0401.hk, 9.76%), xingkerong Pharmaceutical (6833.hk, 9.37%), Evergrande automobile (0708.hk, 9.00%) and Langhua International Group (8026.hk, 6.78%).
The top five stocks that fell were minimally invasive Siasun Robot&Automation Co.Ltd(300024) -b (2252. HK, – 34.05%), Hehuang Pharmaceutical (0013. HK, – 25.07%), Qianhai health (0911. HK, – 24.71%), gushengtang (2273. HK, – 24.59%), minimally invasive medical (0853. HK, – 23.65%).
Key industry trends:
\u3000\u30001. On March 11, the comprehensive group of the joint prevention and control mechanism of the State Council announced the application scheme for covid-19 virus antigen detection (Trial), comprehensively implemented the monitoring mode of “antigen screening and nucleic acid diagnosis”, added antigen detection as a supplement to the original nucleic acid detection, and officially issued the basic requirements and procedures for covid-19 virus antigen self-test, List the three applicable groups for antigen detection. On March 13, the State Food and Drug Administration approved the change approval of five covid-19 antigen self-test products. Since then, 10 covid-19 antigen products have been approved for self-test and other non professional places, namely: Beijing huaketai, Nanjing Nanjing Vazyme Biotech Co.Ltd(688105) , Beijing jinwofu, Shenzhen Huada Yinyuan, Guangzhou Guangzhou Wondfo Biotech Co.Ltd(300482) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Beijing Hotgen Biotech Co.Ltd(688068) , boassis, Mingdao jietest Lepu diagnosis and other 10.
Key company dynamics:
[ Asymchem Laboratories (Tianjin) Co.Ltd(002821) (6821. HK; Asymchem Laboratories (Tianjin) Co.Ltd(002821) . SZ)] on March 13, the company released its main operating data. From January to February 2022, the company’s revenue increased by 130% year-on-year, and both revenue growth and orders on hand reached a record high. It is expected that Q1 revenue in 2022 will increase by more than 150% and the amount will exceed 2 billion yuan.
[geley pharmaceutical-b (1672. HK)] on March 13, the company announced that the annual production capacity of ritonavir oral tablets was further expanded to 530 million tablets to meet the growing potential demand in China and the world.
[modern dentistry (3600. HK)] on March 11, the company released a positive profit forecast. In fiscal year 2021, the company’s revenue was about HK $2.9-3 billion, an increase of about 32.4% to 37.0% over 2020; In fiscal year 2021, the company’s EBITDA was about HK $620 million to HK $640 million, an increase of about 40.1% to 44.6% over 2020; The company’s net profit in fiscal year 2021 was about HK $350 million to HK $370 million, an increase of about 225.0% to 243.5% over 2020.
Key recommended targets:
Yonghe medical (2279. HK), haijiya medical (6078. HK), Corning Jerry pharmaceutical-b (9966. HK), Cinda biological (1801. HK), kangfang biological-b (9926. HK), Cansino Biologics Inc(688185) biological-b (6185. HK; Cansino Biologics Inc(688185) . SH), Fangda holding (1521. HK), Jinxin reproduction (1951. HK), etc.
Risk tips:
Policy risk, the risk that the progress of drug research and development is less than expected, the risk of drug quality and other emergencies.
