Key points:
Traditional Chinese Medicine II fell 2.21% last week, following the decline due to the volatility of the A-share market
Last week, pharmaceutical biology closed at 985438 points, down 2.07%; Traditional Chinese Medicine II closed at 737194 points, down 2.21%; Chemical pharmaceutical closed at 1109955 points, down 2.2%; Biological products closed at 1036244 points, down 3.14%; Pharmaceutical business closed at 611805 points, down 0.07%; Medical devices closed at 887587 points, down 0.08%; Medical services closed at 948266 points, down 3.35%. As the recent A-share market fluctuated significantly due to the external influence, the pharmaceutical sector fell.
In terms of the company’s performance, the top companies are: Hunan Hansen Pharmaceutical Co.Ltd(002412) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Dali Pharmaceutical Co.Ltd(603963) , Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) , Shanghai Kaibao Pharmaceutical Co.Ltd(300039) ; Companies with poor performance include: Yunnan Baiyao Group Co.Ltd(000538) , Jilin Aodong Pharmaceutical Group Co.Ltd(000623) , Furen Group Pharmaceutical Co.Ltd(600781) , Beihai Gofar Chuanshan Biological Co.Ltd(600538) , Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) .
Traditional Chinese medicine PE (TTM) decreased by 0.75 times and Pb (LF) decreased by 0.07 times
Last week, the PE of traditional Chinese medicine was 33.3 times, the maximum value of PE in recent year was 38.81 and the minimum value was 28.78; The current Pb is 2.98 times, the maximum value of Pb in recent year is 3.56, and the minimum value is 2.57. PE in traditional Chinese medicine decreased by 0.75 times and Pb decreased by 0.07 times. The valuation center of the traditional Chinese medicine industry continues to move down, and the current valuation level is slightly higher than the median level in the past year. The valuation premium rate of traditional Chinese medicine sector relative to Shanghai and Shenzhen 300 was 167.77%.
The price index of traditional Chinese medicine continued to rise, and the varieties of traditional Chinese medicine rose more or fell less
Last week, the total price index of traditional Chinese medicine was 214.27 points, up 0.5 percentage points from the previous week, and the hot spots in the traditional Chinese medicine market showed a strong performance. Twelve major categories of traditional Chinese medicine showed ten rises and two falls, and the price index of plant fruit and medicinal materials ranked first. Recently, the Chinese herbal medicine market is generally stable, with more varieties rising and less varieties falling. After the weather turns warm, the popularity increases and the trading volume rises. It is expected that the price index is expected to continue to rise slightly in the later stage.
The new version of covid-19 pneumonia diagnosis and treatment plan was released, and traditional Chinese medicine continued to play an important role
The national health and Health Committee released the New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth), and made adjustments and amendments to the centralized isolation management, treatment and discharge standards. Centralized isolation management shall be implemented for light cases; Two newly approved drugs are included in the treatment list (ritonavir tablets and domestic monoclonal antibodies); Traditional Chinese medicine has strengthened the application of non drug therapy, added acupuncture and moxibustion treatment content, and added traditional Chinese medicine treatment content for children. Lianhua Qingwen capsule (granule), Jinhua qinggan granule, Huoxiang Zhengqi Capsule (pill, water, oral liquid) and other traditional Chinese medicine continue to be recommended. The new diagnosis and treatment plan is conducive to alleviate the pressure of medical resources and improve the prevention and control efficiency. Traditional Chinese medicine also continues to play an important role in the treatment of covid-19 pneumonia.
Traditional Chinese medicine has played a positive role in previous public health events. With the support of policies, we believe that traditional Chinese medicine still has great investment opportunities. From the demand side, the rigid demand characteristics of the pharmaceutical industry and the upgrading of pharmaceutical consumption jointly support the steady growth of the demand of the traditional Chinese medicine industry. From the perspective of policy, a series of favorable policies have been formed to promote the innovation of traditional Chinese medicine, the development of formula particles, the support of medical insurance and payment policies, and the continuous addition of traditional Chinese medicine decoction pieces can not exceed 25%, bringing policy dividends and new demand to the traditional Chinese medicine industry. The unique advantage of “preventing disease” brings development opportunities to the traditional Chinese medicine industry. From the perspective of performance, the traditional Chinese medicine industry has walked out of the low point and showed a marginal improvement trend. From the valuation side, the traditional Chinese medicine industry still has relatively obvious valuation advantages. “Policy + pharmaceutical consumption upgrading + performance improvement + valuation advantage” jointly build investment opportunities for the traditional Chinese medicine industry. Cost promotion constitutes a short-term driving factor. It is suggested to pay attention to the areas of policy encouragement and policy haven.
(1) pay attention to the innovation of modern traditional Chinese medicine, and pay attention to the innovation targets of modern traditional Chinese medicine with strong R & D strength and layout of large categories (large market: cardio cerebrovascular + fast growth: pediatric medicine);
(2) pay attention to the advantages of brand traditional Chinese medicine, formula and raw materials, and jointly build a moat of brand traditional Chinese medicine;
(3) benefit from consumption upgrading, and pay attention to the subject matter of industrial chain extension and strong brand advantage. At present, it is in the performance disclosure season. It is suggested to pay attention to the pre disclosure of the performance of listed companies and the subject matter with excellent performance in the annual report.
Risk tips
(1) stricter industrial policies;
(2) industry and listed company performance fluctuation risk.
