Market review: this week, the Shenwan pharmaceutical and biological sector index fell by 1.4%, underperforming the CSI 300 index by 0.4%. The pharmaceutical sector ranked 12th in the Shenwan industry classification, and individual stocks with more early gains showed a correction. The pharmaceutical segment was slightly adjusted this week, in which the medical devices and medical services rose by 2.94% and 2.33% respectively; The top five increases in medicine were China Resources Double-Crane Pharmaceutical Co.Ltd(600062) (+ 42.7%), Andon Health Co.Ltd(002432) (+ 28.6%), Dali Pharmaceutical Co.Ltd(603963) (+ 20.4%), Shanghai Labway Clinical Laboratory Co.Ltd(301060) (+ 18.0%), Zhejiang Ausun Pharmaceutical Co.Ltd(603229) (+ 16.4%).
Industry policy and dynamic: 1) who suggested that the vaccination procedure of HPV be adjusted: from April 4 to April 7, the World Health Organization immune strategy advisory expert group (SAGE) held a meeting to review the evidence of one dose of HPV vaccination. The conclusion is that single dose HPV vaccine can provide reliable protection, which is equivalent to the effect of two or three doses of vaccination program. Sage recommends the following immunization procedures: 1 or 2 doses for women aged 9-14 (the highest priority population); 15-20-year-old women were vaccinated once or twice; Women over 21 years old were vaccinated twice (with an interval of 6 months); 2) Shanghai Economic and Information Technology Commission issued the guidelines for epidemic prevention and control of industrial enterprises in Shanghai (First Edition): actively support enterprises to resume work and production, guide enterprises to “one enterprise and one policy”, and earnestly do a good job in epidemic prevention and control, including a number of pharmaceutical related enterprises, such as YaoMing biology, Tofflon Science And Technology Group Co.Ltd(300171) and Shanghai Junshi Biosciences Co.Ltd(688180) etc. We believe that this is a very clear positive signal that relevant industries will gradually resume operation in the context of epidemic prevention and control.
Investment strategy: this week, the Shenwan pharmaceutical and biological sector index fell by 1.4%, underperforming the CSI 300 index by 0.4%. The pharmaceutical sector ranked 12th in the Shenwan industry classification. Although there is great pressure on epidemic prevention and control in China, the newly confirmed cases in Shanghai, which has the greatest pressure on prevention and control, have decreased in the past two days, and nearly 20000 people have been released from isolation every day. The most difficult time for epidemic prevention and control in Shanghai has passed. On April 16, the Shanghai Economic and Information Technology Commission issued the guidelines for the prevention and control of the epidemic situation in the resumption of work and production of industrial enterprises in Shanghai (the first edition), which supported the resumption of work and production of enterprises on the premise of doing a good job in the prevention and control of the epidemic situation. We judge that, marked by the epidemic prevention and control in Shanghai, China’s current round of epidemic prevention and control is about to usher in the end stage, and all industries will return to work and production one after another. At present, epidemic prevention and control and resumption of production are the most concerned sectors of the current medicine market. Both epidemic prevention and resumption of production should be paid attention to. The key points are as follows: first, covid-19 oral drug industry chain deserves continuous attention: besides vaccines and testing, covid-19 oral drugs are urgently needed in the epidemic prevention and control toolkit. It is suggested to pay attention to: 1. Pfizer covid-19 small molecule industry chain: 1) MPP authorized enterprises: Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) and Apeloa Pharmaceutical Co.Ltd(000739) etc; 2) Cdmo: Porton Pharma Solutions Ltd(300363) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Wuxi Apptec Co.Ltd(603259) , etc; 3) Intermediates: Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) , Zhejiang Starry Pharmaceutical Co.Ltd(603520) etc; 2. Domestic covid-19 small molecule and industrial chain are in urgent need of domestic autonomous and controllable drugs to be listed: 1) azvudine, a real biological drug, has the fastest progress (it is expected that the data of phase III will be revealed in April), and its supply chain continues to pay attention to: Zhejiang Ausun Pharmaceutical Co.Ltd(603229) Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) ; 2) Shanghai Junshi Biosciences Co.Ltd(688180) R & D vv116 has started the third phase of global multi center, and it is expected to report production within 22 years; 3) Other 3CL target enterprises are pre clinical (among which Xiansheng pharmaceutical has just been approved for clinical). 2、 Under the expectation of resumption of production, consumer medical care deserves attention: the dawn of this round of epidemic prevention and control has appeared. Driven by the resumption of work and production in Shanghai, more industries and regions may return to normal in the future. Focus on: Aier Eye Hospital Group Co.Ltd(300015) , Topchoice Medical Co.Inc(600763) , Autek China Inc(300595) , etc. 3、 Continue to be optimistic about the traditional Chinese medicine sector: under the guidance of the 14th five year plan of traditional Chinese medicine, traditional Chinese medicine will continue to be catalyzed by favorable policies, and investment opportunities are expected to run through 2022. The decline of the latest exclusive varieties of Guangdong proprietary Chinese medicine is limited, which is better than expected. Focus on: Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Shandong Buchang Pharmaceuticals Co.Ltd(603858) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Chinese traditional medicine, Beijing Tongrentang Co.Ltd(600085) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , etc. 4、 In April, the annual report and the first quarterly report were intensively disclosed: focus on biological products: Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Kangtai Biological Products Co.Ltd(300601) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) and Changchun High And New Technology Industries (Group) Inc(000661) ; Key focus of devices: Shanghai Kindly Enterprises Development Group Co.Ltd(603987) , Qingdao Novelbeam Technology Co.Ltd(688677) etc; CXO focuses on: Wuxi Apptec Co.Ltd(603259) , Porton Pharma Solutions Ltd(300363) , Baicheng medicine, etc; Drug concerns: Chongqing Taiji Industry (Group) Co.Ltd(600129) , Kpc Pharmaceuticals Inc(600422) , Hunan Jiudian Pharmaceutical Co.Ltd(300705) and Shenyang Xingqi Pharmaceutical Co.Ltd(300573) etc.
Portfolio this week: it is recommended to focus on Wuxi Apptec Co.Ltd(603259) , Tofflon Science And Technology Group Co.Ltd(300171) , Aier Eye Hospital Group Co.Ltd(300015) , Topchoice Medical Co.Inc(600763) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Baicheng medicine, etc.
April portfolio: it is recommended to pay attention to Wuxi Apptec Co.Ltd(603259) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Aier Eye Hospital Group Co.Ltd(300015) , Chongqing Zhifei Biological Products Co.Ltd(300122) and Shenzhen Kangtai Biological Products Co.Ltd(300601) .
Risk tip: the industry demand is less than expected; The performance of listed companies is less than expected; Market competition intensifies risks.
