Key investment points:
SW pharmaceutical and biological industry recorded negative returns this week, underperforming the Shanghai and Shenzhen 300 index. From January 4 to January 7, 2022, the SW pharmaceutical and biological industry index fell by 3.94%, about 1.55 percentage points lower than the CSI 300 index in the same period. Among the segments, only pharmaceutical businesses recorded positive earnings, up 1.29%; Chemical preparations, traditional Chinese medicine, biological products, APIs, medical devices and medical services decreased by 1.29%, 1.45%, 2.49%, 4.4%, 4.6% and 10.34% respectively. Medical services performed the weakest this week, with CXO falling sharply. About 65% of the stocks in the industry recorded negative returns.
There was a slight net outflow from the pharmaceutical and biological industry this week. From January 4 to January 7, 2022, the land stock connect had a net inflow of RMB 6.203 billion, of which the Shanghai Stock connect had a net inflow of RMB 6.853 billion and the Shenzhen Stock connect had a net outflow of RMB 650 million. Among the Shenwan industry, the net inflow of banking industry is the first, and the net outflow of electronics industry is the first. This week, the pharmaceutical and biological industry had a net outflow of 487 million yuan, an increase over the previous week.
Industry news: the general office of the State Council issued the national disability prevention action plan (2021-2025). Work objective: by 2025, the disability prevention policy system covering all fields of economic and social development will be further improved, the whole population's life cycle disability prevention service network will be more sound, the people's disability prevention literacy will be significantly improved, the main disability factors such as heredity and development, disease and injury will be effectively prevented and controlled, and the status of disability rehabilitation services will continue to improve, The main indicators of disability prevention are in the forefront of middle - and high-income countries. Tianjin meets Omicron. As of 21:00 on August 8, 18 positive persons had been detected in close contacts in Tianjin, which had been transferred to designated hospitals for isolation treatment. The infected persons mainly involve the trusteeship institution where the case is located, school students and parents.
Maintain recommended ratings for the industry. The pharmaceutical and biological industry fluctuates greatly in the short term, but the long-term demand is good. It is recommended to pay attention to CXO advantage leaders Wuxi Apptec Co.Ltd(603259) (603259), Hangzhou Tigermed Consulting Co.Ltd(300347) (300347), Pharmaron Beijing Co.Ltd(300759) (300759), Joinn Laboratories (China) Co.Ltd(603127) (603127), Shanghai Medicilon Inc(688202) (688202), Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821), Kyushu Pharmaceutical (603456), Porton Pharma Solutions Ltd(300363) (300363), Pharmablock Sciences (Nanjing) Inc(300725) (300725), etc. Scientific services, focusing on Sino Biological Inc(301047) (301047), Nanjing Vazyme Biotech Co.Ltd(688105) (688105), etc. Medical devices: focus on platform faucets Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760), medical beauty faucets Imeik Technology Development Co.Ltd(300896) (300896), ophthalmic device faucets Autek China Inc(300595) (300595), Eyebright Medical Technology(Beijing) Co.Ltd(688050) (688050), pharmaceutical equipment faucets Tofflon Science And Technology Group Co.Ltd(300171) (300171) and Truking Technology Limited(300358) (300358), rehabilitation medical device faucets Xiangyumedicalco.Ltd(688626) (688626), Nanjing Vishee Medical Technology Co.Ltd(688580) (688580), etc. In the short term, retail pharmacy leaders Dashenlin Pharmaceutical Group Co.Ltd(603233) (603233), Yifeng Pharmacy Chain Co.Ltd(603939) (603939), Yixintang Pharmaceutical Group Co.Ltd(002727) (002727), Lbx Pharmacy Chain Joint Stock Company(603883) (603883) are expected to benefit from the dual channel of negotiated drugs and usher in an inflection point. The policy side of the traditional Chinese medicine industry is relatively friendly. It is recommended to pay attention to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436), Yunnan Baiyao Group Co.Ltd(000538) (000538), Beijing Tongrentang Co.Ltd(600085) (600085), Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) (600332), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) (000999), Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) (002603) with brand value and exclusive product advantages.
Risk tips: repeated epidemic, R & D failure, intensified industry competition, policy risk, product safety and quality risk, etc.
