Market summary of this week
This week, pharmaceutical biology rose 0.54% year-on-year, outperforming the market. Among them, the medical service sub industry rose by 4.49%, the pharmaceutical business sub industry rose by 2.46%, the traditional Chinese medicine sub industry rose by 2.45%, the chemical pharmaceutical sub industry fell by 0.1%, the biological products sub industry fell by 1.7% and the medical device sub industry fell by 3.16%.
This week, the medical service sub industry increased the most, mainly because of the large decline in the early stage, superimposed with the favorable information of the external environment such as Zte Corporation(000063) winning the lawsuit and the resumption of the exemption of imported goods in the United States. As a strong support, the performance rebounded greatly. The number of asymptomatic covid-19 infected people in China continues to increase, and the epidemic situation in Shanghai has attracted much attention; The supply of covid-19 antigen detection kit continues to increase, the price is reduced rapidly, and the market is worried about the deterioration of the competition pattern. The oral drug industry chain related to covid-19 is still the most concerned subject investment.
Outlook for next week: focus on new medical infrastructure, CXO, vaccines and life sciences upstream
The current valuation and positions of the pharmaceutical sector are at the bottom of history. With the continuous disclosure of the annual report, the track of the high boom industry is expected to rebound first. Covid-19 antigen and small molecule oral drugs are listed in medical insurance, and the market continues to pay attention.
1) new medical infrastructure: 2021 is the first year of China's new medical infrastructure, and the growth rate of medical equipment industry is expected to increase. Recommend Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Huakang medical, etc. 2) CXO: with strong demand for orders and rapid expansion of production capacity, CXO industry is still a sub industry with high performance certainty and growth in the pharmaceutical industry. 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) Vaccine: HPV vaccine is the first cancer preventive vaccine. Its effectiveness has been verified by many countries. The global supply has been in short supply for a long time. With the listing of domestic vaccines and the gradual release of production capacity, it is expected to usher in a 100 billion market. Focus on: Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Chongqing Zhifei Biological Products Co.Ltd(300122) ; It is suggested to pay attention to: Kangle guard, REC biology, Walvax Biotechnology Co.Ltd(300142) . 4) 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.
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 25. The valuations from 2022 to 2023 are 35x and 27x 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 25, 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.
