The traditional Chinese medicine sector, whose share price has continued to rise recently, has attracted much attention from the capital market. After hitting a four-year high of 11849.75 on January 4, Wande traditional Chinese medicine industry index (882572) increased by 2.59% on January 6 after a correction for one trading day. On the one hand, the driving force for the rise of the index comes from the boost of the rise in the price of traditional Chinese medicine to the activity of the industry; On the other hand, it comes from the policy side’s support for traditional Chinese medicine Chuang Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) . In 2022, six varieties of Beijing Tongrentang Co.Ltd(600085) products were included in the price increase range, and the price increase was more than 10%. On Jiuzhitang Co.Ltd(000989) January 1, the price adjustment notice was officially issued to customers, and the price adjustment range of Chinese patent medicine in 21 product specifications ranged from 6% to 30%.
some products still have the power to increase prices
Traditional Chinese medicine is the core material basis of traditional Chinese medicine and even the great health industry. It is also the most characteristic agricultural and sideline industry in China. However, the production and price of traditional Chinese medicine have fluctuated repeatedly in recent years. Affected by the cyclical fluctuation of industry price and the global economic environment, the price of traditional Chinese medicine has risen continuously.
According to the data of yaotong.com, a Chinese herbal medicine information platform, the prices of more than 50 Chinese herbal medicines will double in 2021. Correspondingly, Wande traditional Chinese medicine industry index (882572) increased by 28.62% in 2021, especially 20% in November and December. On January 4, 2022, the index reached a four-year high of 11849.75.
Centralized purchase has become an important factor in the market price change of traditional Chinese medicine. In September 2021, 19 inter provincial purchasing alliances for centralized purchase of traditional Chinese medicine were established. On December 21, the proposed winning results of centralized volume procurement were publicized. On January 4, 2022, the proposed winning prices of centralized purchase were publicized. A total of 218 products with different packaging were proposed to be selected. There was a large difference between the benchmark price and the proposed winning price of some products, and the proposed winning price decreased significantly on the basis of the benchmark price.
Jia Haibin, founder and chief analyst of big data of Tiandi yuntu traditional Chinese medicine industry, told the Securities Daily that in the short term, the market funds were withdrawn at the end of the year and the beginning of the year, and there was a slight correction in the market of some hot varieties under the demand for cash out. In the medium and long term, the centralized purchase of Chinese patent medicine has become a new stimulating topic in the industry, and its positive and negative effects should be viewed according to the situation.
Jia Haibin said: “Some people in the industry believe that the centralized purchase of Chinese patent medicine is to concentrate the share of small and medium-sized enterprises to large enterprises, and the overall market share will not change. However, this is not the case. From the results of centralized purchase of chemical drugs, the sales volume of products after centralized purchase has increased, but the overall price shows a downward trend. Therefore, the raw materials of Chinese herbal medicine may also be affected by centralized purchase, and the prices of some basic products are caused by competition Decline, some scarce raw materials will show a monopoly trend, and even continue to rise in prices. ”
On the one hand, the pace of centralized collection of Chinese patent medicines is moving forward, on the other hand, Chinese herbal medicines are facing the pressure of price rise, which puts forward higher requirements for Chinese herbal medicine enterprises. Xiangcai securities analysis pointed out that the centralized purchase of Chinese patent medicine will bring a decline in price, but at the same time, it will also bring a reshuffle in the Chinese patent medicine market. Cost control is more critical. Enterprises with cost and variety advantages are expected to exchange price for quantity.
policies promote multi-path innovation of traditional Chinese medicine enterprises
In addition to the price rise of traditional Chinese medicine, innovation has also become an important factor for the capital to pay attention to the traditional Chinese medicine industry. Last year, the heavy support policies of the traditional Chinese medicine sector continued. For example, several policies and measures on accelerating the characteristic development of traditional Chinese medicine, opinions on Further Strengthening the work of traditional Chinese medicine in general hospitals and promoting the coordinated development of traditional Chinese and Western medicine, and the implementation plan for the dissemination of traditional Chinese medicine culture (2021-2025).
In 2021, the number of innovative traditional Chinese medicine approved by the State Food and drug administration has reached 11, which is the largest year in five years. Gong Tao, chairman of Shenzhen Zhongjin Huachuang fund, told the Securities Daily that the release of favorable policies will inevitably bring positive impetus to the traditional Chinese medicine industry. Some listed companies of traditional Chinese medicine have begun to actively invest in innovative R & D, such as extracting, refining and preparing traditional Chinese medicine materials using the latest Bioscience Technology, And the combination and drug innovation with the experimental theory of western chemical drugs.
Zhang Cuixia, chief investment adviser of Jufeng investment, told reporters that the Innovation Paths of traditional Chinese medicine enterprises are relatively rich. For example, the traditional drug R & D cycle is relatively long and the supervision is strict, while the innovation cycle in the field of brand traditional Chinese medicine health is shorter, which is more in line with contemporary consumers and has become the focus of innovation breakthrough of traditional Chinese medicine enterprises. Another innovation direction is fine treatment, such as the use of traditional Chinese medicine preparations for gene cell therapy and rehabilitation medical research of traditional Chinese medicine. These innovative lines bring imagination space and market growth potential to traditional Chinese medicine enterprises, and their anti risk ability will be stronger and stronger.
Zhang Cuixia said: “With the more modern technology of Chinese pharmaceutical enterprises in the development of traditional Chinese medicine, the audience of traditional Chinese medicine will be more extensive in the future, even in the overseas market. Some large traditional Chinese medicine enterprises with API production bases and multiple R & D pipelines will be favored by capital. If small and medium-sized traditional Chinese medicine enterprises lack raw material reserves, their profits will face the pressure of centralized procurement and may increase production No profit increase. ”
(Securities Daily)
