Ping An View:
Industry view: the pharmaceutical sector has a correction in the short term, and the valuation and cost performance of the sector are prominent. The pharmaceutical sector fell 7.34% last week, while the Shanghai and Shenzhen 300 index fell 4.19% in the same period. Affected by the epidemic, the market fluctuated greatly recently, and there was a large correction in the pharmaceutical sector. As of April 22, 2022, the valuation of the pharmaceutical sector was 25.20 times (TTM, excluding negative values in the overall method), and the valuation premium rate for all A-Shares (excluding finance) was 36.97%, lower than 56.53% of the historical average. We believe that the valuation of the pharmaceutical sector is cost-effective, so we suggest paying attention to it. In the short term, we suggest paying attention to enterprises with strong certainty of performance growth and significant improvement in performance month on month growth. In the long run, we are optimistic about CXO sector and Chuang Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) chain with high scenery and prominent valuation and cost performance.
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) Sinocelltech Group Limited(688520) sct510 bevacizumab injection (VEGF) listing application was accepted by the State Food and drug administration; 2) CHMP recommends conditional approval of Roche bispecific antibody mosunetuzumab targeting CD20 and CD3; 3) The bispecific antibodies targeting CD3 and CD20 of abbvie and genmab reached an objective remission rate of 63.1%; 4) Servier oral type 1 isocitrate dehydrogenase (IDH1) inhibitor avonib combined with chemotherapy reached the main end point in phase 3.
Market review: last week, the A-share pharmaceutical sector fell 7.34%, the Shanghai and Shenzhen 300 index fell 4.19% in the same period, and the pharmaceutical industry ranked 25th among 28 industries. Last week, the H-share pharmaceutical sector fell 6.93%, the Hang Seng Composite Index fell 4.51% in the same period, and the pharmaceutical industry ranked ninth among the 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.
