Key investment points:
Market summary of this week and Prospect of next week
Shenwan pharmaceutical biological index rose 1.08% this week, and the overall performance was stronger than the market. Among them, the biological products sub industry increased significantly, up 6.29%; The pharmaceutical business sub industry increased by 2.92%, the traditional Chinese medicine sub industry increased by 1.09%, the chemical pharmaceutical sub industry increased by 0.90%, the medical device sub industry decreased by 0.66%, and the medical service sub industry decreased by 1.16%.
Covid-19 test kit related policies appeared frequently this week, and related test stocks fluctuated greatly; Private medical related stocks fell significantly due to the impact of online mail events. The market value and proportion of shares held by foreign SW pharmaceutical biology and the valuation of SW pharmaceutical biology are at the relative bottom. We suggest to focus on the following segments with rapid performance growth and high prosperity: 1) new medical infrastructure: the global pandemic since 2020, and the contradiction of global shortage of basic medical equipment is prominent. China's 14th five year plan clearly proposes to strengthen the construction of public health system and high-quality medical resources. 2021 is the first year of China's new medical infrastructure, and the growth rate of medical equipment industry is expected to increase. It is suggested to pay attention to Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Huakang medical, etc. 2) CXO: at present, the industry has strong demand for orders and rapid expansion of production capacity. It is still the pharmaceutical sector with high performance certainty and growth. Focus on Wuxi Apptec Co.Ltd(603259) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Pharmablock Sciences (Nanjing) Inc(300725) , and it is suggested to focus on Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Shanghai Medicilon Inc(688202) , etc. 3) Upstream of life sciences: the industry has benefited from the rapid growth of scientific research investment. Domestic brands have emerged under the covid-19 epidemic, and the process of domestic substitution is expected to accelerate. Focus on Nanjing Vazyme Biotech Co.Ltd(688105) , and it is recommended to pay attention to Acrobiosystems Co.Ltd(301080) , Sino Biological Inc(301047) , Feipeng biology.
This week's topic: Heyuan biology, the first share of cdmo in gene and cell therapy in China
Heyuan biology is a biotechnology company focusing on gene and cell therapy (GCT) integrated cro / cdmo services. It will be officially listed in Kechuang edition. Since 2017, with milestone products such as kymriah, luxturna and zolgensma approved by FDA for listing, gene therapy has continued to make breakthroughs and become one of the most promising Global Frontier pharmaceutical fields. Compared with traditional pharmaceuticals, CGT relies more on R & D and production outsourcing services. It is estimated that the service market scale of cgtcro and cgtcdmo in China will reach 31% and 43% respectively from 2020 to 2025. Heyuan biology takes the lead in the layout of cgtgmp production line and CGT production capacity. It has the international advanced and most comprehensive cell domestication and culture process, plasmid transfection process and automatic downstream purification process, which is expected to fully benefit from the growth of the industry.
Monthly gold shares in March
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ): a multi category, multi market and multi-level comprehensive instrument leader, after covid-19, it will enjoy the acceleration of global layout and the business cycle of China's new infrastructure, and its performance can grow continuously and stably. The company has adjusted to the bottom range of multi-year valuation, corresponding to the closing price on March 18. The valuations from 2022 to 2023 are 37x and 29x respectively, maintaining the "buy" rating.
Humanwell Healthcare (Group) Co.Ltd(600079) ( Humanwell Healthcare (Group) Co.Ltd(600079) ): in the era of centralized mining, refined hemp drugs have the attribute of high barrier and good industrial competition pattern; The demand for narcotic drugs is driven by the growth of operation volume, comfortable diagnosis and treatment and other factors; The refocusing process continued, the debt ratio improved and the financial expenses decreased. Corresponding to the closing price on March 18, the valuations from 2022 to 2023 are 17x and 14x respectively, maintaining the "buy" rating.
Risk tips
Covid-19 epidemic recurrence risk; Trade friction exceeded expectations; Policy risk
