With the successive disclosure of the annual report of 2021, some new investment trends deserve attention. One of them is the "latent" heavy position of well-known investment institutions in traditional Chinese medicine stocks.
various institutions compete to increase positions in traditional Chinese medicine stocks
Up to now, 16 listed companies in the traditional Chinese medicine industry have released their annual reports for 2021. From the positions disclosed so far, well-known public funds and private equity leaders have significantly increased their positions in traditional Chinese medicine related stocks.
Feng Liu, the managing director of Gaoyi assets, a private placement boss, currently holds three Chinese medicine stocks. He increased his position of China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , and continued to stick to Beijing Tongrentang Co.Ltd(600085) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , with a total market value of 4.649 billion yuan at the end of the period.
Gao yilinshan No. 1 Yuanwang fund managed by Feng Liu increased its position by 7 million shares China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , increased its shareholding to 42 million shares at the end of the period, with a market value of 1.438 billion yuan, ranking the third largest circulating shareholder of the company. This has been Feng Liu's position in the stock for three consecutive quarters.
At the end of the fourth quarter of last year, Feng Liu continued to stick to Beijing Tongrentang Co.Ltd(600085) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , with a market value of 2.924 billion yuan and 288 million yuan respectively. In fact, Feng Liu has held these two traditional Chinese medicine stocks for nearly two years.
Not only the private placement bosses, but also the top public fund managers also favor traditional Chinese medicine stocks.
Ge Lan, who is in charge of the scale of the 100 billion fund, has also entered the top ten shareholders of Beijing Tongrentang Co.Ltd(600085) with 228322 million shares and a market value of 1.027 billion yuan at the end of the period. At the same time, it newly appeared in Jianmin Pharmaceutical Group Co.Ltd(600976) the list of the top ten shareholders, with a market value of 266 million yuan, ranking the fourth largest shareholder.
Han Chuang, a well-known fund manager of Dacheng Fund, appeared in the Jiangzhong Pharmaceutical Co.Ltd(600750) shareholder list with three funds, holding a total stock market value of 190 million yuan.
In addition, GF fund, huitianfu fund and other fund products invested in Kpc Pharmaceuticals Inc(600422) , Jianmin Pharmaceutical Group Co.Ltd(600976) and other traditional Chinese medicine stocks.
So, where is the "fragrance" of traditional Chinese medicine stocks? Is it exceptional performance?
From the relevant data, it does perform well.
So far, 31 of the 71 listed companies of traditional Chinese medicine have disclosed their annual reports or performance letters. The overall operating revenue of 31 companies increased by 13.68% year-on-year, the net profit increased by 7.55% year-on-year, and the overall P / E ratio was 32 times. Among them, the profits of 24 companies increased year-on-year The performance of Dong-E-E-Jiao Co.Ltd(000423) , Teyi Pharmaceutical Group Co.Ltd(002728) , Jianmin Pharmaceutical Group Co.Ltd(600976) , Zhejiang Jolly Pharmaceutical Co.Ltd(300181) doubled year-on-year.
Prepared by: Gao Zhigang
traditional Chinese medicine stocks are favored with logical support
Further, are traditional Chinese medicine stocks favored by "investment bulls" just because of their performance?
The reporter interviewed a number of people in the industry and synthesized the views of all parties: medical insurance negotiation / centralized purchase, high R & D failure rate and DRGs fee control are the "three factors" that western medicine innovative drugs are no longer popular in the past two years, but for the time being, traditional Chinese medicine is the same.
some varieties of traditional Chinese medicine are not troubled by centralized purchase and medical insurance negotiation
The guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine (hereinafter referred to as the opinions) issued by the national medical insurance administration and the State Administration of traditional Chinese medicine at the end of 2021 clearly stipulates to build a compact medical consortium led by traditional Chinese medicine medical institutions, implement the payment policies of total payment, strengthening supervision and assessment, remaining balance and reasonable cost sharing, and promote the sinking of high-quality traditional Chinese medicine medical resources to grass-roots medical and health institutions.
The opinions not only allows the sales of traditional Chinese medicine decoction pieces to be increased by no more than 25%, but also considers to be included in the catalogue of Medicare drugs, and uses "double channels" to expand the drug channels of insured patients to designated retail pharmacies.
Last year, the traditional Chinese medicine formula granules ended more than 20 years of pilot work, were included in the scope of traditional Chinese medicine decoction pieces management, and the filing system was officially implemented. Since then, the production of traditional Chinese medicine formula granules has been opened to qualified enterprises other than provincial pilot enterprises, and enterprises are allowed to sell across provinces after filing.
The national medical insurance bureau also said that the traditional Chinese medicine formula particles should be properly included in the reimbursement scope of the national medical insurance. Fujian Province has included the traditional Chinese medicine formula particles in the medical insurance this month. Chinese traditional medicine, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Yangzi pharmaceutical, Jilin Aodong Pharmaceutical Group Co.Ltd(000623) , Jinghua Pharmaceutical Group Co.Ltd(002349) , Zhejiang Jolly Pharmaceutical Co.Ltd(300181) and many other pharmaceutical enterprises have seized this fast-growing market.
in the short term, there is no charge control pressure of DRGs / Dip policy for traditional Chinese medicine
At the same time, the Opinions also provides a separate "safe haven" for the traditional Chinese medicine industry: general traditional Chinese medicine medical service projects can continue to pay by project, and traditional Chinese medicine medical institutions can temporarily not pay by grouping related to disease diagnosis. For areas where DRG and dip have been implemented, the coefficients and scores of TCM medical institutions and TCM diseases shall be appropriately improved to reflect the characteristics and advantages of TCM services.
Previously, seven provinces and cities including Shanghai, Zhejiang, Jiangxi, Hunan, Guangdong and Sichuan were eligible for the first batch of national demonstration zones for comprehensive reform of traditional Chinese medicine. The demonstration area takes the provincial level as the main construction body, and encourages the first trial in the service mode of traditional Chinese medicine, industrial development and quality supervision.
compared with western medicine, the research and development of innovative traditional Chinese medicine has doubled the cost and risk
In addition, according to the classification of registration classification and application data requirements of traditional Chinese medicine, the registration of traditional Chinese medicine is classified according to the innovative drugs of traditional Chinese medicine, the improved new drugs of traditional Chinese medicine, the traditional Chinese medicine compound preparations of ancient classic famous prescriptions and the drugs with the same name. The first three categories belong to the new drugs of traditional Chinese medicine.
According to industry insiders, traditional Chinese medicine innovative drugs should also follow preclinical research - clinical research - Review and approval, but if a drug has clinical use experience and has been clinically recognized, a large number of preclinical research can be exempted. The traditional Chinese medicine innovative drugs approved for listing in recent years are mainly traditional Chinese medicine compound preparations of ancient classic famous prescriptions, which is also the most likely to obtain preclinical exemption.
From the data, the pace of application, approval and listing of new traditional Chinese medicine has been significantly accelerated. In 2021, 12 new traditional Chinese medicine drugs including Jianmin Pharmaceutical Group Co.Ltd(600976) qiruiweishu capsule, Jiangsu Kanion Pharmaceutical Co.Ltd(600557) Yinqiao Qingre tablet and Qingfei Paidu granule were approved for listing, reaching a new high in recent five years. Some institutions predict that the approval and listing of new traditional Chinese medicine will accelerate in the future, and the number of new traditional Chinese medicine listed may exceed 20 every year.
It is worth mentioning that in the 2022 government work report, "supporting the revitalization and development of traditional Chinese medicine and promoting the comprehensive reform of traditional Chinese medicine" was mentioned again. Since 2018, the revitalization of traditional Chinese medicine has been repeatedly emphasized in various development plans, and the "14th five year plan" is also regarded as a key period for the development of traditional Chinese medicine.
traditional Chinese medicine has become a new favorite in the capital market. Another important reason is that OTC of Chinese patent medicine has independent pricing power
Some investment bankers told reporters that with the increase in the price of Chinese herbal medicines in the upstream and the increase in the price acceptance of Chinese patent medicines in the downstream pharmacies, the OTC price increase channel of Chinese patent medicines has been smooth in recent years and is expected to increase profits. In addition, with the improvement of consumers' brand awareness and online channel share, the growth of head brands continued to exceed the industry average.
