Biweekly performance of the sector: in the past two weeks, the CSI 300 index fell by 5.13%, and the pharmaceutical and biological (Shenwan) index fell by 1.02%, with a relative return of 4.11% compared with the CSI 300, ranking third in the industry. Since the beginning of 2022, the CSI 300 index has fallen by 13.65%, and the pharmaceutical and biological (Shenwan) index has fallen by 12.52%, which is 1.14% higher than the excess return of CSI 300. The overall rise and fall ranks 14th in the industry. In terms of molecular sectors, two of the seven Shenwan pharmaceutical sub industries rose in the past two weeks, namely SW chemical API and SW pharmaceutical commercial II, up 3.1% and 2.86% respectively; Five sectors fell, among which SW chemical and SW medical service II rose the last, with - 2.59% and - 4.48% respectively. Since the beginning of the year, the overall trend of the pharmaceutical sector has been weak. Among the seven sub industries, only chemical APIs have increased positively, up 2.45%; Other increases were negative, of which SW medical service II increased by - 20.45%.
Weekly tracking of individual stocks: 1) from the rise and fall of individual stocks: from the rise and fall of individual stocks, 144 stocks in the pharmaceutical industry A-Shares (including the science and Innovation Board) rose positively and 289 stocks fell in the past two weeks. The top five stocks in the past two weeks are China Meheco Group Co.Ltd(600056) (+ 125.19%), Pku Healthcare Corp.Ltd(000788) (+ 90.22%), Ningbo Menovo Pharmaceutical Co.Ltd(603538) (+ 76.54%), Shanghai Labway Clinical Laboratory Co.Ltd(301060) (+ 61.82%), Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) (+ 49.81%). The top five stocks with declines in recent two weeks are Ningbo David Medical Device Co.Ltd(300314) (- 19.44%), Zjamp Group Co.Ltd(002758) (- 18.94%), Aier Eye Hospital Group Co.Ltd(300015) (- 18.21%), Lanhai Medical Investment Co.Ltd(600896) (- 18.03%) and ST national medicine (- 17.95%). 2) Shares held by luchutong: in the past two weeks, the total net sales of northbound funds were 5.994 billion yuan, including 5.437 billion yuan inflow and 11.431 billion yuan outflow. From the position of land stock connect, the top five holdings are Shenzhen Lifotronic Technology Co.Ltd(688389) , Dong-E-E-Jiao Co.Ltd(000423) , Peking University pharmaceutical, Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) , Shanghai Pharmaceuticals Holding Co.Ltd(601607) . The top five holdings reduction are Frontier Biotechnologies Inc(688221) -u, Sunflower Pharmaceutical Group Co.Ltd(002737) , Truking Technology Limited(300358) , Bloomage Biotechnology Corporation Limited(688363) , Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) . 3) Block transactions: in the past two weeks, 49 companies in the pharmaceutical and biological industry have had block transactions, with a total transaction amount of 4.671 billion yuan. The top five in block trading are Chongqing Zhifei Biological Products Co.Ltd(300122) , Shanghai Raas Blood Products Co.Ltd(002252) , Changjiangrunfa Health Industry Co.Ltd(002435) , Sansure Biotech Inc(688289) , Iray Technology Company Limited(688301) .
Sector valuation level: the PE (TTM) valuation of the pharmaceutical and biological sector has reached 29.96x in the past two weeks, which is still lower than the average pe37.96x in the past five years 75X。 Since the beginning of the year, the sector valuation has been further explored. The quantile of PE (TTM) valuation has reached 14.14% in recent 5 years (2017 / 3 / 202022 / 3 / 20) and 9.34% in recent 10 years (2012 / 3 / 202022 / 3 / 20), which is at a historically low level. Compared with the same industry, the premium rate of pe-ttm in the pharmaceutical and biological sector relative to all A-Shares excluding finance is 17.77%, and the premium rate relative to CSI 300 is 153.08%.
Industry highlights: 1) the State Food and drug administration has approved 13 covid-19 virus antigen detection reagents; 2) Guangdong, Shandong and other provinces carried out centralized collection of covid-19 virus antigen detection reagent products; 3) The results of the special centralized purchase of covid-19 antigen detection reagent of Lu Jin Alliance were announced; 4) Five Chinese enterprises were approved to produce Pfizer covid-19 oral medicine free of charge; 5) Fuhong Hanlin anti PDL1 / tigit double antibody was approved for clinical use.
The research and development of covid-19 specific drugs outside China is progressing smoothly. It is suggested to pay attention to the targets of relevant industrial chains.
1) at present, covid-19 specific drugs approved for marketing mainly include Pfizer paxlovid and mosadon molnupiravir; Many Chinese pharmaceutical companies have begun to develop covid-19 specific drugs, including Junshi, Kaifa pharmaceutical, real creatures, Geli, Xiansheng, sentient beings, Yunding Xinjiang, Fujian Cosunter Pharmaceutical Co.Ltd(300436) , Shan Dong Kexing Bioproducts Co.Ltd(688136) , etc.
2) there is a large demand for the two approved covid-19 specific drugs overseas, and the upstream API intermediate providers are expected to benefit; At the same time, Chinese manufacturers authorized by MPP are also expected to benefit significantly. It is suggested to pay attention to the following: Shanghai Junshi Biosciences Co.Ltd(688180) ( Brightgene Bio-Medical Technology Co.Ltd(688166) , not rated), Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) ( Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) , buy), Beijing Balance Medical Technology Co.Ltd(688198) ( Beijing Balance Medical Technology Co.Ltd(688198) , buy), Beijing Labtech Instruments Co.Ltd(688056) ( Beijing Labtech Instruments Co.Ltd(688056) , buy), etc.
Risk tips
Investment suggestions and investment targets such as new drug R & D, promotion and listing less than expected, industry volume procurement policy more than expected, epidemic outbreak again, etc
