Key investment points:
Market review: from March to April 2022, the medical device (Shenwan) sector increased by – 10.19%, ranking fourth among the six secondary sub industries of Shenwan medicine, losing 300% in Shanghai and Shenzhen and 1.13% and 4.03% in Pharmaceutical Biology (Shenwan) respectively. As of April 18, 2022, the average PE of medical devices was 22.85 times, ranking second among the six secondary industries of pharmaceutical biology, with a discount of 16.70% compared with Shenwan pharmaceutical biology, and a premium of 104.49% and 65.37% compared with CSI 300 and all a shares.
Overseas outbreaks have been repeated, new varieties of Omicron with high infectivity have emerged, and the epidemic situation in China is running at a high level. Covid-19 hospitalizations and deaths have rebounded in some overseas regions. Covid-19 recombinant variant “Xe” with high infectivity has been detected in overseas regions, and Omicron variant Ba reported in South Africa 4 and ba The proportion of 5 sequences increased rapidly, causing concern about the future epidemic situation; The outbreak of Omicron in many places in China is expected to remain at a high level in the short term.
Investment suggestion: under the background of repeated outbreaks and severe epidemic prevention situation outside China, China’s series of testing policies promote the further expansion of the application scenarios of independent antigen testing products. We believe that with the release of China’s pilot scheme for antigen detection and the approval and listing of antigen detection products, the future application scenarios of antigen self-test reagents will continue to increase, and both upstream and downstream of the reagent production and sales industrial chain are expected to benefit. We suggest to pay attention to: (1) upstream related raw material enterprises, such as covid-19 antigen and antibody suppliers Nanjing Vazyme Biotech Co.Ltd(688105) , Sino Biological Inc(301047) , Feipeng Biology (not yet listed), Red latex carboxyl microspheres supplier Suzhou Nanomicro Technology Co.Ltd(688690) , reagent plastic parts supplier Shenzhen Changhong Technology Co.Ltd(300151) , Zhejiang Gongdong Medical Technology Co.Ltd(605369) , NC film supplier Zhejiangtailin Bioengineering Co.Ltd(300813) , etc; (2) Midstream antigen self-test reagent manufacturers with strong channel capacity and leading product performance, such as Guangzhou Wondfo Biotech Co.Ltd(300482) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , Shenzhen Yhlo Biotech Co.Ltd(688575) , Beijing Hotgen Biotech Co.Ltd(688068) , Hangzhou Biotest Biotech Co.Ltd(688767) , Wuhan Easy Diagnosis Biomedicine Co.Ltd(002932) , Andon Health Co.Ltd(002432) , etc; (3) Downstream antigen self-test reagent sales platforms, such as online medical device sales platform enterprises Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Cofoe Medical Technology Co.Ltd(301087) , etc.
Risk tips: changes in industrial policies, intensified industrial competition, product quality problems, etc.
