Industry Review
During the reporting period, the pharmaceutical and biological industry index fell by 1.02%, ranking second among Shenwan's 31 primary industries, outperforming the CSI 300 index (- 5.13%). From the perspective of sub industries, among the three-level pharmaceutical and biological industries, vaccines, pharmaceutical circulation and in vitro diagnosis led the increase, with an increase of 11.23%, 9.73% and 3.24% respectively; Hospitals, offline pharmacies and blood products led the decline, with declines of 15.69%, 12.13% and 7.53% respectively. In terms of valuation, as of March 18, 2022, the PE (TTM overall method, excluding negative values) of the pharmaceutical and biological industry was 28.69x (29.22x in the previous period), lower than the negative double standard deviation. The PE (TTM overall method, excluding negative values) of API, chemical agents, traditional Chinese medicine, blood products, vaccines, other biological products, pharmaceutical circulation, offline pharmacies, medical equipment, medical consumables, in vitro diagnosis, diagnostic services, medical R & D outsourcing, hospitals and other medical services in Shenwan tertiary industry of medicine and biology are 37.40x, 27.62x, 29.22x, 31.83x, 28.72x, 27.25x, 14.85x, 25.41x, 41.75x, 15.66x, 20.52x respectively 20.40x、56.99x、57.18x、76.77x。
During the reporting period, the shareholders of 42 listed companies in the pharmaceutical and biological industries in the two cities reduced their net holdings by 3.339 billion yuan. Among them, 12 increased their holdings by 1.216 billion yuan and 30 reduced their holdings by 4.555 billion yuan. As of March 20, 2022, 36 of the 422 listed companies in the pharmaceutical and biological industry we tracked have disclosed the annual report of 2021. Among them, there are 12 companies whose net profit attributable to the parent company is greater than or equal to 30%; From the perspective of subdivided industries, the net profit attributable to the parent company is increasing, and the top three sub industries are medical devices, chemical pharmacy and traditional Chinese medicine, with a number of 6 / 6 / 5 respectively. Among them, the performance of the medical device sub industry is outstanding, with 2 companies with a growth rate of more than 100% and 5 companies with a growth rate of more than 30%.
Important industry information
The application scheme for covid-19 virus antigen detection (Trial) was issued
New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth) released
FDA Approves the world's first LAG-3 antibody
Five Chinese pharmaceutical companies are authorized to imitate Pfizer covid-19 oral medicine
Investment suggestions:
Recently, New Coronavirus pneumonia detection, treatment and other programs have been updated and released. "COVID-19 virus antigen detection application plan (Trial Implementation)" was released 4 days later. The Shandong Medical Insurance Bureau launched a special collection of products against the original detection products. Among the 5 enterprises selected, the price of Hua Da Yuan was 7.9 yuan / person. As of March 20, 2022, the State Food and drug administration has approved 17 covid-19 virus antigen detection reagent products. The reform of centralized procurement with quantity has entered a new stage of normalization and institutionalization. Drugs, high-value medical consumables, biological products and Chinese patent medicines have been affected to varying degrees. Quality and cost control will still be the main theme of pharmaceutical policies in the future.
During the reporting period, the valuation level of the pharmaceutical industry sector is still significantly lower than the industry average and slightly lower than the negative standard deviation level of the industry. The valuation is at the bottom of history. At present, the investment value of the industry is prominent. We suggest increasing the allocation proportion of the industry and paying attention to the investment opportunities in six aspects: first, the annual report of 2021 and the performance of the first quarterly report of 2022 are disclosed successively, and paying attention to the leading enterprises with high growth or exceeding expectations in the annual report and the performance of the first quarterly report; Second, with the official release of the 14th five year plan for the development of pharmaceutical industry, under the premise of controlling medical insurance expenses, innovation and internationalization will be the core main line of the industry in the future. It is suggested to pay attention to innovation driven companies and pharmaceutical enterprises with international ability; The third is the CXO industry. The valuation of CXO industry is at the bottom of history. With the listing of covid-19 oral medicine, China's high-quality cdmo enterprises have obtained sufficient orders. Contrarian, focus on companies with reasonable valuation and sufficient orders; Fourth, drugstore chain companies with reasonable valuation and stable recovery; Fifth, pay attention to the consumer medical section. Under the background of medical insurance fee control, the ophthalmology, medical beauty and other medical sub industries with consumption attribute have policy immunity, and the consumption upgrading will drive their development; Sixth, pay attention to the traditional Chinese medicine sector. The release of the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine shows the state's determination to the inheritance, innovation and development of traditional Chinese medicine, which will play a positive role in the traditional Chinese medicine industry.
Risk tips:
The performance release of medical insurance negotiation varieties is less than expected; Covid-19 epidemic situation is repeated; Policy uncertainty.
