Key investment points:
This week, SW pharmaceutical and biological industry outperformed the Shanghai and Shenzhen 300 index. From March 21 to March 25, 2022, SW pharmaceutical and biological industry rose by 0.54%, ranking the eighth in Shenwan primary industry, outperforming the CSI 300 index by about 2.68 percentage points in the same period. In the pharmaceutical and biological industry segments, medical devices, biological products and chemical pharmaceuticals recorded negative gains, down 3.16%, 1.70% and 0.10% respectively; Other sectors recorded positive earnings, of which medical services, pharmaceutical commerce, traditional Chinese medicine and API rose by 4.49%, 2.46%, 2.45% and 1.50% respectively. The performance of medical services was the strongest, which was mainly driven by the higher than expected performance of YaoMing biology and Wuxi Apptec Co.Ltd(603259) 2021.
This week, the pharmaceutical and biological industry had a net outflow of 689 million yuan. From March 21 to March 25, 2022, the net outflow of land stock connect was 12.779 billion yuan, including 6.372 billion yuan from Shanghai Stock connect and 6.407 billion yuan from Shenzhen Stock connect. Among the Shenwan level industries, the inflow of power equipment and non-ferrous metals ranks first, and the net outflow of food and beverage and non bank finance ranks first. This week, the pharmaceutical and biological industry had a net outflow of 689 million yuan, ranking the tenth in the net outflow of Shenwan first-class industry, which was lower than that of last week.
Maintain the recommended rating of the industry. In the future, covid-19 small molecule oral drugs, vaccines, antigen detection and traditional Chinese medicine are expected to play an important role in the prevention and treatment of covid-19. It is suggested to pay attention to Shanghai Junshi Biosciences Co.Ltd(688180) -u ( Shanghai Junshi Biosciences Co.Ltd(688180) ) with rapid R & D Progress of covid-19 small molecular drugs; Cdmo enterprises deeply involved in the global covid-19 small molecule supply chain Wuxi Apptec Co.Ltd(603259) ( Wuxi Apptec Co.Ltd(603259) ), Asymchem Laboratories (Tianjin) Co.Ltd(002821) ( Asymchem Laboratories (Tianjin) Co.Ltd(002821) ), Porton Pharma Solutions Ltd(300363) ( Porton Pharma Solutions Ltd(300363) ), etc; Focus on vaccine enterprises with strong R & D capability and covid-19 vaccine R & D pipeline Chongqing Zhifei Biological Products Co.Ltd(300122) ( Chongqing Zhifei Biological Products Co.Ltd(300122) ), Walvax Biotechnology Co.Ltd(300142) ( Walvax Biotechnology Co.Ltd(300142) ), Cansino Biologics Inc(688185) ( Cansino Biologics Inc(688185) ), Livzon Pharmaceutical Group Inc(000513) ( Livzon Pharmaceutical Group Inc(000513) ), etc; Covid-19 antigen detection related enterprises Guangzhou Wondfo Biotech Co.Ltd(300482) ( Guangzhou Wondfo Biotech Co.Ltd(300482) ), Zhejiang Orient Gene Biotech Co.Ltd(688298) ( Zhejiang Orient Gene Biotech Co.Ltd(688298) ), Anxi Biology (688075), Beijing Hotgen Biotech Co.Ltd(688068) ( Beijing Hotgen Biotech Co.Ltd(688068) ), etc; Enterprises related to upstream raw materials for antigen detection Nanjing Vazyme Biotech Co.Ltd(688105) ( Nanjing Vazyme Biotech Co.Ltd(688105) ), Sino Biological Inc(301047) ( Sino Biological Inc(301047) ), Acrobiosystems Co.Ltd(301080) ( Acrobiosystems Co.Ltd(301080) ), etc; Enterprises related to traditional Chinese medicine epidemic prevention Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) ( Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) ), etc; Pay attention to Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) ( Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) ), Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) ( Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) ), Kyushu Pharmaceutical ( Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) ) and Apeloa Pharmaceutical Co.Ltd(000739) ( Apeloa Pharmaceutical Co.Ltd(000739) ) licensed to produce Pfizer covid-19 oral drugs; Concerned that in the future, residents can purchase antigen detection reagents by themselves through retail pharmacies and other channels, and retail pharmacies are expected to usher in improved Yifeng Pharmacy Chain Co.Ltd(603939) ( Yifeng Pharmacy Chain Co.Ltd(603939) ), Lbx Pharmacy Chain Joint Stock Company(603883) ( Lbx Pharmacy Chain Joint Stock Company(603883) ), Dashenlin Pharmaceutical Group Co.Ltd(603233) ( Dashenlin Pharmaceutical Group Co.Ltd(603233) ), Yixintang Pharmaceutical Group Co.Ltd(002727) ( Yixintang Pharmaceutical Group Co.Ltd(002727) ), etc; The valuation is relatively reasonable, and the prosperity is expected to maintain a good cro Pharmaron Beijing Co.Ltd(300759) ( Pharmaron Beijing Co.Ltd(300759) ), Joinn Laboratories (China) Co.Ltd(603127) ( Joinn Laboratories (China) Co.Ltd(603127) ), Hangzhou Tigermed Consulting Co.Ltd(300347) ( Hangzhou Tigermed Consulting Co.Ltd(300347) ), etc; Medical device leader Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ), pharmaceutical equipment leader Tofflon Science And Technology Group Co.Ltd(300171) ( Tofflon Science And Technology Group Co.Ltd(300171) ) and Truking Technology Limited(300358) ( Truking Technology Limited(300358) ) with relatively reasonable valuation; In the medium term, chain medical leaders Aier Eye Hospital Group Co.Ltd(300015) ( Aier Eye Hospital Group Co.Ltd(300015) ), Topchoice Medical Co.Inc(600763) ( Topchoice Medical Co.Inc(600763) ), which are expected to benefit from aging and strong endogenous growth.
Risk tip: the demand for covid-19 antigen detection has not increased as expected, the industry competition has intensified, product price reduction, product safety and quality risk, policy risk, repeated epidemic, and the R & D progress is lower than expected.
