Today (March 29), Shanghai and Shenzhen stock markets showed a pattern of shock adjustment. The three major A-share indexes opened higher in the morning. After the shock consolidation at the beginning of the session, the stock index then fell into a diving and falling pattern. In the afternoon, it continued to fluctuate and weaken repeatedly. There was occasional lifting performance in the session, and it also quickly suffered pressure and falling. In the end, the stock index dived again, and finally the three major indexes closed down slightly.
In this regard, Guosheng Securities pointed out that the worst time of A-Shares is gradually passing, and the high probability of index low this year has appeared. Considering that the current market is still in the stage of shock and bottom grinding repair, the reversal still needs to wait. With the introduction and effectiveness of more stable growth policies, the capital may return to the stock market, the pessimism is also expected to be repaired, the index can return to the upward trend, and it is recommended to maintain the balanced allocation of growth and value in investment.
At the same time, the agency further analyzed that before the effective upward breakthrough in the market, it is still necessary to control the overall position, suitable for low absorption, and “stable growth” will become the main logic driving the operation of the market. It pays attention to undervalued and low configured traditional infrastructure such as banks and real estate, building materials, wind power, photovoltaic and other new infrastructure. It is suggested to properly layout theme sectors such as chemical fertilizer and epidemic specific drugs in combination with performance and cost performance.
sector:
I. agriculture, animal husbandry, feeding and fishery
For the agricultural industry opportunities in 2022, China Galaxy Securities Co.Ltd(601881) Securities pointed out that it firmly recommended the pig cycle. The core view is that in the bottom stage of the pig cycle, the deep loss period is the best time to layout breeding stocks. From the perspective of expectation, there will be no worse expectation. The risk of breeding stocks has been released in large quantities, and the safety margin is very high. With the decline of the number of fertile sows and the decline of pig prices again, the production capacity continues to clear, which is good for the industry to meet the dawn. Based on our judgment of the second bottom of 22q2-3, 22q1 is expected to be the second best time point for the layout of breeding stocks.
In addition, Huaxi Securities Co.Ltd(002926) mentioned that the price of Shenzhen Agricultural Products Group Co.Ltd(000061) rose in an all-round way under the catalysis of peripheral conflicts, and the price of Shenzhen Agricultural Products Group Co.Ltd(000061) soybean meal, wheat and other Shenzhen Agricultural Products Group Co.Ltd(000061) reached a 14 year high. The problem of food security became more and more prominent, which further stimulated the improvement of the landscape of the planting industry chain. The “new seed law” passed by China will be implemented from March 1, 2022, which is conducive to strengthening the protection of intellectual property rights in the seed industry and encouraging the innovation and breakthrough of breeding technology in the industry. The Department of agriculture and rural areas of Gansu Province recently issued a notice on the work plan for the supervision of agricultural genetically modified organisms in Gansu Province in 2022, which emphasizes preventing the proliferation of illegal genetically modified crops and promoting the healthy development of the research and application of agricultural genetically modified organisms. With the continuous improvement of industrial policies and the strict supervision of local governments, the application of biological breeding technology will be closer and closer. If the relevant systems of “Document No. 1” are issued smoothly, it will be of great significance for seed industry enterprises that have obtained genetically modified safety certificates in the early stage. Relevant listed companies include Beijing Dabeinong Technology Group Co.Ltd(002385) , Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Shandong Denghai Seeds Co.Ltd(002041) .
Guosen Securities Co.Ltd(002736) said he was optimistic about the upward trend of grain price boom in 2022. On the one hand, it is good for the planting and seed sector. On the other hand, the rise of the cost of feed raw materials may accelerate the reversal of the pig price cycle, so it is optimistic about the investment opportunities of the pig sector. Specific targets: 1) planting sector: recommend Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) , and pay attention to Heilongjiang Agriculture Company Limited(600598) . 2) Relevant Shenzhen Agricultural Products Group Co.Ltd(000061) section: recommend Cofco Sugar Holding Co.Ltd(600737) and pay attention to China Hainan Rubber Industry Group Co.Ltd(601118) . 3) Seed sector: recommended Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Beijing Dabeinong Technology Group Co.Ltd(002385) , Shandong Denghai Seeds Co.Ltd(002041) , etc. 4) Recommendations for pig breeding sector: Zhejiang Huatong Meat Products Co.Ltd(002840) , Fujian Aonong Biological Technology Group Incorporation Limited(603363) , Leshan Giantstar Farming&Husbandry Corporation Limited(603477) , Tecon Biology Co.Ltd(002100) , Dongrui Food Group Co.Ltd(001201) , COFCO Jiakang, Muyuan Foods Co.Ltd(002714) , Wens Foodstuff Group Co.Ltd(300498) , etc.
II. Traditional Chinese Medicine
Minsheng Securities said that the traditional Chinese medicine industry is in the stage of gradual rise. 1) OTC of traditional Chinese medicine has no risk of centralized purchase, and the out of hospital market has independent pricing power, which helps to maintain a high profit margin. We focus on two directions. First, we have exclusive and confidential varieties and high intellectual property barriers. It is recommended to pay attention to Beijing Tongrentang Co.Ltd(600085) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Jianmin Pharmaceutical Group Co.Ltd(600976) , etc; Second, targets with Omni channel coverage and brand strength are recommended to pay attention to China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Henan Lingrui Pharmaceutical Co.Ltd(600285) , etc. 2) The direction of TCM diagnosis and treatment service has been supported by policies and is in a period of rapid growth. It is suggested to pay attention to gushengtang, the leading private TCM chain. 3) Under the trend of tracing the source of traditional Chinese medicine, enterprises providing high-quality traditional Chinese medicine Pieces / formula particles at the head are expected to benefit. It is suggested to pay attention to Chinese traditional Chinese medicine, Tianjin Chase Sun Pharmaceutical Co.Ltd(300026) etc. 4) The competition pattern in the field of innovative traditional Chinese medicine is good, and drug research and development has entered an intensive cashing period. It is suggested to pay attention to Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Guizhou Sanli Pharmaceutical Co.Ltd(603439) , etc.
Capital securities mentioned that the leading companies in the traditional Chinese medicine sector have obvious cost performance and high allocation value. Traditional Chinese medicine has played a significant role in the covid-19 epidemic. In recent years, with the continuous improvement of the high-level attention to the cause of traditional Chinese medicine, various policies supporting the development of traditional Chinese Medicine have been issued one after another. Especially in 20202021, favorable policies for the traditional Chinese medicine industry will be intensively introduced, involving drug evaluation, clinical use, medical insurance payment, medical service system construction and many other aspects. The policy environment of the traditional Chinese medicine industry will be greatly improved, and the industry is expected to usher in an inflection point.
The agency further suggested to pay attention to high-quality companies in the traditional Chinese medicine industry. The specific ideas are as follows: (1) brand traditional Chinese medicine leaders, including Beijing Tongrentang Co.Ltd(600085) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ; (2) Leading companies of innovative traditional Chinese medicine, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Tasly Pharmaceutical Group Co.Ltd(600535) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) ; (3) Formula granules leading Chinese traditional medicine and China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ; (4) OTC Chinese patent medicine enterprises with obvious brand value include China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Henan Lingrui Pharmaceutical Co.Ltd(600285) and Jianmin Pharmaceutical Group Co.Ltd(600976) . From the perspective of valuation, the above-mentioned companies are basically near the valuation center in recent five years, with sufficient safety margin and high allocation value.
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