Market review: this week, the Shenwan pharmaceutical and biological sector index rose 1.1%, outperforming the CSI 300 index by 2%. The pharmaceutical sector ranked third in the Shenwan industry classification. Among them, the forward-looking performance of the first quarterly report was high, and the performance of biological products was good, up 6.3%; The top five increases in medicine were China Meheco Group Co.Ltd(600056) (+ 58.9%), Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) (+ 45.9%), Pku Healthcare Corp.Ltd(000788) (+ 41.1%), Walvax Biotechnology Co.Ltd(300142) (+ 31.0%), Beijing Kawin Technology Share-Holding Co.Ltd(688687) (+ 30.9%).
Industry policy and development: 1) New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth) is issued: supplementary antigen detection, isolation of disease, new Chinese and Western medicine, and adjustment of lifting isolation / discharge standard; 2) Covid-19 antigen detection and centralized purchase was rapidly carried out in many places across the country, and the price was as low as less than 10 yuan / person: Shandong, Guangdong, Henan, Hubei and Zhejiang began to resist the centralized purchase of raw products and bidding network; 3) Pfizer small molecule oral drug MPP results announced: Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Apeloa Pharmaceutical Co.Ltd(000739) , Desano, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) approved imitation; 4) Kingsley Biotechnology: cta101 won China’s first general-purpose car-t new drug clinical research approval. 5) Walvax Biotechnology Co.Ltd(300142) : dtaphib quadruple vaccine clinical trial approved; 6) Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) : the net profit in 2021 increased by 198.59% year-on-year, and the production and marketing of vaccines were booming.
Forward looking topic of the first quarterly report: select individual stocks in subdivided sectors and be optimistic about the performance growth in the first quarter and the whole year. 1) Medical devices: select companies with high undervalued performance ( Shanghai Kindly Enterprises Development Group Co.Ltd(603987) , Zhejiang Gongdong Medical Technology Co.Ltd(605369) ), steady growth platform companies ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) ), specialized special new companies ( Qingdao Novelbeam Technology Co.Ltd(688677) ), and look forward to their performance in the first quarter and the whole year. 2) Biological products: the vaccine sector will still be one of the strategic layout directions in 2022. After last year’s low base and the impact of the epidemic, 22q1 ushered in restorative growth, with Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) and Changchun High And New Technology Industries (Group) Inc(000661) ; 3) The number of selected pharmaceutical products in Guangdong Province: ; 4) CXO: maintain a high outlook, with sufficient orders from leading companies and continuous expansion of production capacity, Wuxi Apptec Co.Ltd(603259) a high growth in the first quarter.
Investment strategy: covid-19 epidemic continues to increase the number of newly diagnosed and asymptomatic infected people in China. The situation of prevention and control in China is grim. At present, the strategy of “dynamic clearing” is still implemented; The ninth edition of covid-19 diagnosis and treatment plan was issued, and a number of Chinese and Western therapeutic drugs were added; For diagnosis, China began to add antigen detection as a supplementary means on the basis of nucleic acid detection; The research and development of covid-19 vaccine for different epidemic strains has received renewed attention. Therefore, the sectors related to epidemic prevention and control are still one of the hot investment fields in medicine. We believe that the upgraded covid-19 vaccine and domestic Chinese / Western anti covid-19 drugs are the main investment strategies at present: 1) the research and development of the upgraded covid-19 vaccine has been paid attention to: at present, the covid-19 vaccine of the original strain is still being promoted all over the world, and the immune effect is greatly reduced in the face of delta, Omicron and other variants, It is urgent to develop more effective vaccines against epidemic strains. Many vaccine enterprises in China have developed corresponding upgraded vaccine products for different epidemic strains, including recombinant protein, inactivation, mRNA and other technical routes, including univalent or multivalent products. Recommended focus: Chongqing Zhifei Biological Products Co.Ltd(300122) , Cansino Biologics Inc(688185) , Shenzhen Kangtai Biological Products Co.Ltd(300601) and Walvax Biotechnology Co.Ltd(300142) etc; 2) The industrial chain of Pfizer’s small molecule covid-19 drug is worth continuous attention: the Pfizer ”covid-19 drug chain is worth continuous attention: the results of the small molecule MPP for the drug’s small molecule have been published, and five Chinese pharmaceutical companies have been granted patent authorization for the production of global non-standard markets, focusing on the production of Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) \ etc; 3) “Integration of Chinese and Western medicine” is bound to become the main way of covid-19 treatment in China: the epidemic situation in Hong Kong continues to worsen, and Lianhua Qingwen capsule for prevention and treatment is difficult to find. China has urgently donated hundreds of thousands of Lianhua Qingwen capsules to Hong Kong, and Xuanfei Baidu granule is included in the covid-19 pneumonia diagnosis and treatment plan. The prevention and treatment of covid-19 with traditional Chinese medicine has formed a consensus in Chinese society, We are optimistic about the future of “three drugs and three parties” and build covid-19 prevention and control walls with small molecules and neutralizing antibodies, focusing on Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Shandong Buchang Pharmaceuticals Co.Ltd(603858) , Shanghai Junshi Biosciences Co.Ltd(688180) , etc; 4) Continue to be optimistic about the traditional Chinese medicine sector: the convening of the “two sessions” is expected to accelerate the implementation of favorable policies of traditional Chinese medicine, and the boom market is expected to run through 2022. The ninth edition of covid-19 diagnosis and treatment plan focuses on a variety of traditional Chinese medicine products, which fully affirms the therapeutic effect of traditional Chinese medicine on covid-19. We believe that traditional Chinese medicine will continue to be catalyzed by favorable policies, and the support for traditional Chinese medicine will gradually be reflected in the growth rate of the company’s revenue and profit. Underestimation + strong policy support + underestimation + strong policy support is an important foundation for the continued upward trend of Chinese herbal medicine in the future, with a focus on innovation, brand OTC, formula particles, anti covid-19-19-19 Chinese medicine and other directions related to the direction of Chinese herbal medicine, brand OTC, brand OTC, formula particles, anti-19-19-19-19. Related labels: Hongda Xingye Co.Ltd(002002) Hongda Xingye Co.Ltd(002002) Poten Environment Group Co.Ltd(603603) Poten Environment Group Co.Ltd(603603) 603 \ \wait.
Portfolio this week: it is recommended to focus on Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) , Cansino Biologics Inc(688185) , Porton Pharma Solutions Ltd(300363) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Shanghai Junshi Biosciences Co.Ltd(688180) , etc.
March portfolio: it is recommended to focus on Wuxi Apptec Co.Ltd(603259) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Tofflon Science And Technology Group Co.Ltd(300171) , Hunan Jiudian Pharmaceutical Co.Ltd(300705) , Shanghai Kindly Enterprises Development Group Co.Ltd(603987) and Chongqing Zhifei Biological Products Co.Ltd(300122) .
Risk tip: the industry demand is less than expected; The performance of listed companies is less than expected; Market competition intensifies risks.
