View of Medicine Week: the epidemic situation is repeated frequently, and the demand for covid-19 prevention and control continues to grow
The epidemic situation has been repeated in many places across the country, and the number of newly infected people in Shanghai is at a high level. Since March this year, China's covid-19 epidemic has affected 30 provinces (autonomous regions and cities). The epidemic situation in most provinces and cities is generally controllable. The epidemic situation in Jilin Province shows a downward trend as a whole. The new positive cases in Shanghai are still high, but relatively stable.
Shanghai issued prevention and control guidelines for resumption of work and production, and many enterprises actively resumed work and production. The Shanghai Municipal Commission of economy and information technology issued the guidelines for the prevention and control of the epidemic situation of industrial enterprises returning to work and production in Shanghai (First Edition) on the 16th, which pointed out that enterprises should do a good job in the storage and management of epidemic prevention materials, and timely purchase antigen detection reagents, protective masks, killing alcohol, wash free hand sanitizer, infrared thermometer, thermal imaging thermometer, protective clothing, protective glasses, disposable medical gloves and other materials. It is suggested that epidemic prevention materials should be prepared in more than 14 days.
The demand of covid-19 related industrial chains continues to grow, and it is suggested to pay attention to: 1) small molecule specific drugs: upstream intermediates, APIs ( Aba Chemicals Corporation(300261) , Jinghua Pharmaceutical Group Co.Ltd(002349) (senxuan medicine) and Ningbo Menovo Pharmaceutical Co.Ltd(603538) ) and domestic drugs with rapid clinical progress and relatively mature technical route in China ( Shanghai Junshi Biosciences Co.Ltd(688180) , developing the pharmaceutical industry). 2) Covid-19 vaccine: 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; 3) Covid-19 detection: Guangzhou Wondfo Biotech Co.Ltd(300482) , Nanjing Vazyme Biotech Co.Ltd(688105) etc; 4) Medical equipment: Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Sonoscape Medical Corp(300633) etc.
Market review: the biomedical sector fell 1.38% last week, ranking 12th in weekly rise and fall. Since the beginning of this year, pharmaceutical biology has fallen by 16.27%, 1.06 percentage points lower than the CSI 300 index, ranking 19th in all SW primary industries.
In terms of subdivided industries, the pharmaceutical and biological subdivided sectors rose less and fell more last week, with medical devices rising the most, up 2.94%; Biological products showed the weakest performance, down 5.17%. Since the beginning of this year, the performance of chemical raw materials and pharmaceutical business has been the best, down 7.81% and 11.63% respectively since the beginning of the year; Chemicals were the weakest performing sub sector, down 20.12%. Chemicals (- 20.12%), biological products (- 19.64%) and medical services (- 17.04%) underperformed the pharmaceutical and biological (SW) industry index.
From the performance of individual stocks, the top five stocks that rose last week were: China Resources Double-Crane Pharmaceutical Co.Ltd(600062) (42.66%), Andon Health Co.Ltd(002432) (28.57%), Dali Pharmaceutical Co.Ltd(603963) (20.37%), Shanghai Labway Clinical Laboratory Co.Ltd(301060) (18.05%) and Zhejiang Ausun Pharmaceutical Co.Ltd(603229) (16.38%). The top five stocks with declines are: Hainan Poly Pharm.Co.Ltd(300630) (- 32.98%), Zhejiang Starry Pharmaceutical Co.Ltd(603520) (- 19.79%), Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) (- 17.55%), Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) (- 16.41%) and Shanghai Kaibao Pharmaceutical Co.Ltd(300039) (- 16.23%).
Valuation: the valuation decreased. As of Friday (April 15), PE (TTM) and Pb (LF) in the pharmaceutical and biological (SW) industry were 29.43 times and 3.60 times respectively.
Risk warning: medical policy risk; Lower prices than expected; Systemic risk.
