Traditional Chinese Medicine II fell 3.71% last week, and the traditional Chinese medicine sector made a short-term correction
Last week, pharmaceutical biology closed at 947941 points, down 5.2%; Traditional Chinese Medicine II closed at 743453 points, down 3.71%; Chemical pharmaceutical closed at 1020859 points, down 7.6%; Biological products closed at 1026303 points, down 2.41%; Pharmaceutical business closed at 577987 points, down 8%; Medical devices closed at 831355 points, down 3.71%; Medical services closed at 935109 points, down 6.02%. Chinese medicine sector short-term callback.
In terms of the company’s performance, the top companies are: Dali Pharmaceutical Co.Ltd(603963) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , Heilongjiang Zbd Pharmaceutical Co.Ltd(603567) , Guangdong Taiantang Pharmaceutical Co.Ltd(002433) ; Companies with poor performance include: Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) , Tus- Pharmaceutical Group Co.Ltd(000590) , Jilin Zixin Pharmaceutical Industrial Co.Ltd(002118) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Guizhou Xinbang Pharmaceutical Co.Ltd(002390) .
Traditional Chinese medicine PE (TTM) decreased by 0.59 times and Pb (LF) decreased by 0.01 times
Last week, the PE of traditional Chinese medicine was 33.44 times, the maximum value of PE in recent year was 38.81 and the minimum value was 28.78; The current Pb is 3.01 times, the maximum value of Pb in recent year is 3.56, and the minimum value is 2.65. PE in traditional Chinese medicine decreased by 0.59 times and Pb decreased by 0.01 times. The valuation of the traditional Chinese medicine industry fell slightly, which is now slightly higher than the median level in the past year. The valuation premium rate of traditional Chinese medicine sector relative to Shanghai and Shenzhen 300 is 177.05%.
The centralized collection of Chinese patent medicines of Guangdong alliance has been implemented, and the competitive advantage of exclusive varieties is relatively obvious
Recently, the results of the proposed successful selection of the six provincial alliance in Guangdong were announced. Finally, 361 varieties of 174 enterprises were proposed to be selected / selected, of which 249 varieties of 124 enterprises were proposed to be selected and 112 varieties of 56 enterprises were proposed to be selected. 30 exclusive varieties produced enterprises to be selected / selected, with an overall decrease of about 21%. Judging from the promotion of Chinese patent medicine procurement by Hubei and Guangdong alliance, the procurement of Chinese patent medicine will be further expanded in 2022. Hubei and Guangdong show the characteristics of combined use of various measures such as volume procurement, step quotation, dynamic dosing and surplus distribution, and the centralized purchase of Chinese patent medicine also shows a game to a certain extent. We believe that the competitive advantage of exclusive varieties in centralized mining is relatively obvious.
In terms of performance disclosure, as of April 12, 128 listed companies in the pharmaceutical industry have disclosed their annual reports, of which 26 listed companies of traditional Chinese medicine have disclosed their annual reports, accounting for about 35% of the total number of A-share listed companies of traditional Chinese medicine. Among the 26 traditional Chinese medicine enterprises, 24 companies achieved positive growth in revenue, accounting for 92.31%, and 18 companies achieved positive growth in net profit deducted from non parent companies, accounting for 69%.
Traditional Chinese medicine has entered a new stage of development with policy support in recent years. With policy support and catalysis, the traditional Chinese medicine industry has also ushered in greater investment opportunities. From the demand side, the rigid demand characteristics of the pharmaceutical industry and the upgrading of pharmaceutical consumption jointly support the steady growth of the demand of the traditional Chinese medicine industry. From the perspective of policy, a series of favorable policies have been formed to promote the innovation of traditional Chinese medicine, the development of formula particles, the support of medical insurance and payment policies, and the continuous addition of traditional Chinese medicine decoction pieces can not exceed 25%, bringing policy dividends and new demand to the traditional Chinese medicine industry. The unique advantage of “preventing disease” brings development opportunities to the traditional Chinese medicine industry. From the perspective of performance, the traditional Chinese medicine industry has walked out of the low point and showed a marginal improvement trend. From the valuation side, the traditional Chinese medicine industry still has relatively obvious valuation advantages. “Policy + pharmaceutical consumption upgrading + performance improvement + valuation advantage” jointly build investment opportunities for the traditional Chinese medicine industry. Cost promotion constitutes a short-term driving factor. It is suggested to pay attention to the areas of policy encouragement and policy haven. (1) Pay attention to the innovation of modern traditional Chinese medicine and the innovation targets of modern traditional Chinese medicine with strong R & D strength and layout of large categories (large market: cardio cerebrovascular + fast growth: pediatric drugs);
(2) pay attention to the advantages of brand traditional Chinese medicine, formula and raw materials, and jointly build a moat of brand traditional Chinese medicine; (3) Benefit from consumption upgrading and pay attention to the subject matter of industrial chain extension and strong brand advantage.
At present, it is in the performance disclosure season. It is suggested to pay attention to the pre disclosure of the performance of listed companies and the subject matter with excellent performance in the annual report.
Risk tips
(1) stricter industrial policies;
(2) industry and listed company performance fluctuation risk.
