Core view
Zhou’s view: callback is a buying opportunity. He reiterated that he is optimistic about the covid-19 therapeutic drug industry chain. The number of new cases of covid-19 epidemic in the world remains at a high level of more than 1 million every day, and the epidemic prevention and control has a long way to go. Vid-19 is an essential drug for the treatment of severe diseases, and it should be given priority to the long-term treatment of vid-19 in the world. It is recommended to pay attention to:
Small molecule specific drugs: it is reiterated that small molecule specific drugs run through the investment opportunities throughout the year, and callback is the buying opportunity. It is suggested to pay attention to upstream intermediates, API ( Aba Chemicals Corporation(300261) , Jinghua Pharmaceutical Group Co.Ltd(002349) (senxuan medicine) and Ningbo Menovo Pharmaceutical Co.Ltd(603538) ) and domestic drugs with relatively fast clinical progress and mature technical route in China ( Shanghai Junshi Biosciences Co.Ltd(688180) , and develop the pharmaceutical industry).
Traditional Chinese medicine: we are more optimistic about high universal varieties with a wider audience, and we suggest paying attention to Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) .
Vaccine: we are optimistic about the vaccine. We suggest to pay attention to the non inactivated technical route, and we suggest to pay attention to Chongqing Zhifei Biological Products Co.Ltd(300122) , Cansino Biologics Inc(688185) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Walvax Biotechnology Co.Ltd(300142) , Shijiazhuang Pharmaceutical Group
Market review: the biopharmaceutical sector made an overall correction this week, down 3.33%, ranking 23rd in all SW primary industries. Since the beginning of this year, pharmaceutical biology has fallen by 15.10%, 0.74 percentage points lower than the CSI 300 index, ranking 20th in all SW primary industries.
In terms of subdivided industries, this week, the pharmaceutical and biological subdivided sectors callback across the board, with the largest decline in medical business, down 8.90%. Since the beginning of this year, the performance of chemical APIs has been the best, down 2.78% year to date; Medical services was the weakest performing sub industry, down 18.93%. Biological products (- 15.26%), medical devices (- 15.91%), chemicals (- 17.57%) and medical services (- 18.93%) underperformed the pharmaceutical and biological (SW) industry index.
In terms of performance of individual stocks, the top five stocks that rose last week were: Dali Pharmaceutical Co.Ltd(603963) (33.09%), Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) (23.94%), Xin Jiang Ready Health Industry Co.Ltd(600090) (16.09%), Zhejiang Ausun Pharmaceutical Co.Ltd(603229) (14.88%) and Shan Dong Kexing Bioproducts Co.Ltd(688136) (13.76%). The top five stocks with declines are: Guilin Layn Natural Ingredients Corp(002166) (- 22.07%), Andon Health Co.Ltd(002432) (- 16.89%), Ningbo Menovo Pharmaceutical Co.Ltd(603538) (- 15.25%), China Meheco Group Co.Ltd(600056) (- 14.70%) and Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) (- 13.84%).
Valuation: this week’s valuation showed a slight downward trend. As of Friday (April 8), PE (TTM) and Pb (LF) of the whole pharmaceutical and biological (SW) industry were 29.5 times and 3.63 times respectively.
Risk warning: risk of R & D failure; Risk of failure of existing products caused by covid-19 virus mutation; Risk of sales falling short of expectations.
