Ping An View:
Industry perspective: the annual report and quarterly report enter the intensive disclosure period, focusing on the sectors with high prosperity and high valuation cost performance. In April, the 2021 annual report and the 2022 quarterly report were intensively disclosed. At this time point, we suggest paying attention to enterprises with strong certainty of performance growth and significant improvement in performance month on month growth. Among them, the CXO sector with large decline in the early stage has strong performance certainty, and still has good growth in the future. At present, the valuation cost performance is prominent. Some high-quality enterprises in the traditional Chinese medicine sector have sound fundamentals, and there are frequent favorable policies for traditional Chinese medicine in the near future. With the gradual release of the performance of traditional Chinese medicine enterprises and considering the valuation of the sector, it is still worthy of attention at this point.
Investment strategy: mainline 1: Investment Strategy: mainline 1: Investment Strategy: mainline 1: Investment Strategy: Investment Strategy: the main line 1: the coved-19 oral drug related industry chain. The Geneva patent pool (the organization for the Geneva patent pool (MPP) has successively announced that it will authorize eight Chinese pharmaceutical companies to produce pfpfizer and Merck’s coved-19 specific drugs. The production of related coved-19 drugs and the performance of industry chain enterprises is expected to benefit from the investment strategy: Investment Strategy: the main line 1: coved-19 oral medicine related industry chain. The Geneva organization for the pharmaceutical patent pool (MPP) has successively announced that it will authorize eight Chinese pharmaceutical companies to produce the covid-19 specific drugs for pfpfpfpfizer and Merck. The production of related coved-19 drugs related to coved-19 drugs and the performance of industry chain companies producing and industry chain enterprises is expected to benefit. Suggestions focus: the Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Great Chinasoft Technology Co.Ltd(002453) Shandong Jincheng Pharmaceutical Group Co.Ltd(300233) , Geli pharmaceutical and Nanjing Hicin Pharmaceutical Co.Ltd(300584) , etc. Main line 2: in the traditional Chinese medicine sector, heavy support policies continue to be implemented to enhance confidence. Brand OTC traditional Chinese medicine has independent pricing power, while other proprietary Chinese medicines have moderate centralized purchase and price reduction, and the overall valuation of the sector is cost-effective. It is suggested to pay attention to: Kpc Pharmaceuticals Inc(600422) , gushengtang, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) . Main line 3: create Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain. CXO maintains a high outlook and the valuation has hit the bottom. Combined with the valuation, policy and capital factors, we prefer cdmo and macromolecular CXO track. It is suggested to pay attention to: Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) , Pharmablock Sciences (Nanjing) Inc(300725) . Main line 4: in addition to the above three main lines, there are also some other tracks with high prosperity and high barriers: including characteristic API, preparation export and nuclear medicine. It is suggested to pay attention to: Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Jiangxi Fushine Pharmaceutical Co.Ltd(300497) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) , Yantai Dongcheng Biochemicals Co.Ltd(002675) , Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) , Hainan Poly Pharm.Co.Ltd(300630) , Yuanda medicine.
Industry highlights: 1) Bristol Myers Squibb car-t therapy breyanzi (LISO CEL) has been approved in the EU for the treatment of large B-cell lymphoma (lbcl); 2) Bayer’s larotrectinib was approved in China to treat adult and child patients with solid tumors carrying ntrk fusion gene; 3) Cgoncology oncolytic virus / PD-1 antibody combination phase 2 clinical results were positive; 4) Baiji China baiyueze ® In chronic lymphocytic leukemia, the overall remission rate of ibutinib was superior.
Market review: last week, the A-share pharmaceutical sector fell 1.38%, the Shanghai and Shenzhen 300 index fell 0.99% in the same period, and the pharmaceutical industry ranked 11th among 28 industries. The H-share pharmaceutical sector fell 2.45% last week, while the Hang Seng Composite Index fell 1.16% in the same period. The pharmaceutical industry ranked 11th among 11 industries.
Risk tips: 1) policy risk: policies such as medical insurance fee control and drug price reduction have a great negative impact on the industry; 2) R & D risk: pharmaceutical R & D investment is large and difficult, and there is the possibility of R & D failure or slow progress; 3) Corporate risk: the company’s operation does not meet expectations.
