Market review: last week, the A-share pharmaceutical and biological index rose 0.54%, outperforming the CSI 300 index by 2.68pp and the gem composite index by 2.98pp, ranking 6 / 28, with good performance, mainly due to the good performance of stocks related to covid-19 epidemic and CXO. The H-share Hang Seng medical health index closed up 2.21% last week, outperforming the Hang Seng state-owned enterprise index by 3.33pp, ranking 2 / 11.
Tracking the R & D Progress of listed companies: last week, the clinical applications of cm313 injection of kangnoah and ak104 injection of kangfang biology were newly undertaken; The ind applications of docetaxel polymer micelles for injection and Shenzhen Chipscreen Biosciences Co.Ltd(688321) of theoroni capsules of Xiansheng pharmaceutical are new contractors. Phase IV clinical trial of remiquiolanzapide injection of mingjunuo is under way; Zhengda Tianqing’s arotinib hydrochloride capsule and cofilipin’s konolazan hydrochloride tablets are undergoing phase III clinical trials Tsl-1502 capsule of Tasly Pharmaceutical Group Co.Ltd(600535) and lcb140110 injection of Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) are undergoing phase II clinical treatment Guangdonghectechnologyholdingco.Ltd(600673) pharmaceutical’s hec53856 tablets are undergoing phase I clinical treatment.
This week’s view: the main line of anti epidemic continues to benefit, focusing on the first quarterly market
As of March 25, 2022, the P / E ratio of Shenwan pharmaceutical biology is 29 times (TTM, overall method), and the predicted peg in 2022 is 0.51 times (wind consensus prediction). The valuation of the pharmaceutical sector has entered a reasonable range, with prominent allocation value. Entering the disclosure period of the annual report and the first quarterly report, we suggest to focus on two main lines. The first is the high-profile and reasonable valuation sector, including CXO (focusing on CXO leaders and cdmo enterprises) and anti epidemic main line (upstream industrial chain of vaccines / testing / drugs / specific drugs, etc.); The second is the undervalued and expected reversal of performance, including traditional Chinese medicine, blood products, medical equipment (mainly new medical infrastructure), etc.
Investment strategy in 2022: know the constant changes, keep the right and innovate. Based on the changes and invariance of pharmaceutical investment, we believe that we should actively grasp the investment opportunities in the direction of innovation and internationalization in the future. In terms of innovative drugs and vaccines, Xinda Biology (H) and Rongchang Biology (H) are recommended; In terms of CXO, Yao Mingsheng (H), Pharmaron Beijing Co.Ltd(300759) , Shanghai Haoyuan Chemexpress Co.Ltd(688131) , Pharmablock Sciences (Nanjing) Inc(300725) ; In the field of equipment and Life Sciences, recommend Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , minimally invasive medicine (H), Shinva Medical Instrument Co.Ltd(600587) , Amoy Diagnostics Co.Ltd(300685) ; In terms of innovative cutting-edge technologies, pay attention to unlisted enterprises such as Aibo biology; For domestic consumption, we recommend Jinxin reproduction (H), Lbx Pharmacy Chain Joint Stock Company(603883) , Shandong Wit Dyne Health Co.Ltd(000915) , Boya Bio-Pharmaceutical Group Co.Ltd(300294) .
Risk analysis: price reduction risk of drugs / consumables; Industry “black swan” event; Risk of R & D failure.
