The pharmaceutical sector continued to callback this week
This week, the pharmaceutical and biological index fell by about 7.34%, 3.15 percentage points lower than the Shanghai and Shenzhen 300 index and 3.47 percentage points lower than the Shanghai Composite Index. The industry ranked 28th in terms of rise and fall. As of Friday (April 22), PE (TTM, excluding negative value) in the pharmaceutical industry was 25X. Among the pharmaceutical level III sub industries, all 13 sub industries fell this week. Hospitals were the sub industry with the smallest decline, down 3%. Vaccine was the sub industry with the largest decline, down 10.3%.
Due to the internal and external disturbance of pharmaceutical stock price, it is necessary to continue to select pharmaceutical stocks for layout
Medicine continued to callback this week, who’s new proposal for HPV vaccination continued to disturb the vaccine sector this week, resulting in a major adjustment of the vaccine sector this week, and the traditional Chinese medicine sector also continued to callback driven by market sentiment. At present, the market has high expectations for the annual report and first quarter report of the pharmaceutical subject, which has triggered a large correction in the share price after the performance of some companies. At present, there is no clear theme in the pharmaceutical sector, which needs to be seen while walking. However, it is suggested that the subject matter with reasonable valuation should be laid out. The investment framework of our team, on the one hand, looks for growth categories to promote the company’s business, on the other hand, companies with undervalued value and good cash flow are also worthy of layout.
In combination with macro uncertainties (the turmoil of the Russian Ukrainian war, the US inflation rate hike, the spread of the epidemic, etc.), standing at the market point of fundamentals and capital structure, this year, the centralized procurement policy continued to be implemented (centralized procurement of consumables, national procurement, alliance procurement, etc.). In addition, the short-term pharmaceutical industry sector has not seen any clear positive policies / changes, and the valuations of many pharmaceutical companies have reached a very reasonable range, However, the uncertainty of policy changes makes many investors unable to start. As of Friday (April 22), PE (TTM, excluding negative value) in the pharmaceutical industry was 25X, which was below the “mean value – 1 times the standard deviation” since 2015. Compared with last Friday, PE decreased by 2.4 units, 12 units lower than the mean value (37x) since 2015. It should not be pessimistic. It is already a reasonable range downstream of the valuation center in the history of medicine. Medicine has a strong investment allocation value. We suggest the direction configuration of this year: Traditional Chinese medicine (policy friendly + undervalued value) + medical equipment (medical infrastructure) + scientific research reagents and upstream (autonomous and controllable) + looking for the target from bottom to top in other directions.
We suggest the following investment ideas:
(1) a traditional Chinese medicine sector (with a brand name and a noble OTC plus an innovative traditional Chinese medicine for which the brand is a precious and precious, and the brand ”Brand plus a traditional Chinese Medicine Innovation): a traditional Chinese medicine sector (1) a traditional Chinese medicine sector (a traditional Chinese Medicine for the brand’, a traditional Chinese medicine sector (for the brand, the brand, and the brand, and the precious, and the brand, the OTC plus plus the brand, the brand, the precious, and the brand, the brand, the precious, and the OTC plus plus plus plus the brand ” ” ”’plus the brand ” ” ” (or the brand ” ”’plus plus plus plus the precious, and the brand ”’Brand, and the brand ” ”plus plus plus the precious, and the brand’ ” ”Brand, and the OTC + plus plus plus plus plus plus plus plus plus the brand’ ” ” ” ” ” ”’s precious OTC plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus plus, Teyi Pharmaceutical Group Co.Ltd(002728) and other subjects are also recommended to pay attention to: Tasly Pharmaceutical Group Co.Ltd(600535) , Hunan Fangsheng Pharmaceutical Co.Ltd(603998) , Guilin Sanjin Pharmaceutical Co.Ltd(002275) , Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) and other subjects.
(2) TCM treatment service: gushengtang (leading pioneer of TCM treatment service);
(3) medical infrastructure sector: we recommend to focus on the medical infrastructure sector: medical infrastructure sector: we recommend to focus on the medical infrastructure sector: medical infrastructure sector: we recommend to focus on the Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , Shenzhen Yhlo Biotech Co.Ltd(688575) , Autobio Diagnostics Co.Ltd(603658) , Shenzhen Lifotronic Technology Co.Ltd(688389) , Maccura Biotechnology Co.Ltd(300463) , Tellgen Corporation(300642) , Guangzhou Wondfo Biotech Co.Ltd(300482) , Wuhan Easy Diagnosis Biomedicine Co.Ltd(002932) , etc, IVD enterprises play an important role in epidemic prevention and control (antibodies, antigens and nucleic acid detection reagents), which provides sufficient funds for the development of the company in the future.
4) scientific research reagents and upstream: scientific research reagents and scientific research reagents and upstream: scientific research reagents and scientific research reagents and upstream: we propose to focus on Nanjing Vazyme Biotech Co.Ltd(688105) , Zhejiangtailin Bioengineering Co.Ltd(300813) , Nanmo biology, etc.
(5) other bottom-up sectors and companies need to be analyzed according to the subject matter and valuation of industries and companies, and it is proposed to pay attention to Yantai Zhenghai Bio-Tech Co.Ltd(300653) , Medprin Regenerative Medical Technologies Co.Ltd(301033) and other subjects of regenerative medicine; In the medical service sector, we recommend haijiya, gushengtang and Jinxin reproduction with high cost performance and expansibility, and suggest paying attention to Aier Eye Hospital Group Co.Ltd(300015) , Chaoju Ophthalmology, etc; Recommend Baicheng pharmaceutical and Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) , generic cro and traditional Chinese medicine cro with good performance; Biological products and vaccines need continuous attention. We recommend Chongqing Zhifei Biological Products Co.Ltd(300122) , Changchun Bcht Biotechnology Co(688276) , and Chengdu Olymvax Biopharmaceuticals Inc(688319) , Walvax Biotechnology Co.Ltd(300142) , Cansino Biologics Inc(688185) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , etc; For household medical devices, it is recommended to pay attention to Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , Cofoe Medical Technology Co.Ltd(301087) .
(6) for the innovative drug sector, it is suggested to pay attention to the innovative drug targets with international ability. We suggest to pay attention to Shanghai Junshi Biosciences Co.Ltd(688180) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, Betta Pharmaceuticals Co.Ltd(300558) , Hehuang medicine, kangfang biology, China biopharmaceutical, etc.
New report issued this week
Company depth Teyi Pharmaceutical Group Co.Ltd(002728) ( Teyi Pharmaceutical Group Co.Ltd(002728) ): “build a” 1 + n “development matrix around the characteristics of zhikebao traditional Chinese medicine”; Company depth Jiuzhitang Co.Ltd(000989) ( Jiuzhitang Co.Ltd(000989) ): three hundred years Jiuzhitang Co.Ltd(000989) , inheriting old brands and varieties; Company comments Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ): “benefiting from the new global medical infrastructure, the company’s performance has increased steadily”; Company comments Jiangxi Sanxin Medtec Co.Ltd(300453) ( Jiangxi Sanxin Medtec Co.Ltd(300453) ): “benefiting from the United Nations orders for vaccine syringes, the performance has increased rapidly”; Monthly report of CXO industry in March: “CXO’s high boom continues and its investment value highlights”; Company comments Shenyang Xingqi Pharmaceutical Co.Ltd(300573) ( Shenyang Xingqi Pharmaceutical Co.Ltd(300573) ): “rapid growth of revenue and net profit, continuous optimization of R & D and sales”; Company comments Shanghai Kindly Enterprises Development Group Co.Ltd(603987) ( Shanghai Kindly Enterprises Development Group Co.Ltd(603987) . SH): “high growth of syringes, continuous improvement of profit margin in overseas markets”; Comments of the company Guizhou Sanli Pharmaceutical Co.Ltd(603439) ( Guizhou Sanli Pharmaceutical Co.Ltd(603439) ): “the performance is in line with expectations, and we look forward to the acceleration of the performance after the consolidation of dechangxiang”; Company depth Shanghai Junshi Biosciences Co.Ltd(688180) ( Shanghai Junshi Biosciences Co.Ltd(688180) . SH): pioneer of covid-19 treatment in China and new force of global tumor immunity; The company commented on Jinxin reproduction (1951. HK): “the acquisition plan continues to be implemented, and the development of Yunnan is imminent”; Company comments Zhejiang Jolly Pharmaceutical Co.Ltd(300181) ( Zhejiang Jolly Pharmaceutical Co.Ltd(300181) ): “focus on the main business to bring high performance growth, Wuling capsule leader can be expected in the future”.
Performance of individual stocks this week: only 20% of A-Shares and Hong Kong stocks rose
Of the 434 A-share pharmaceutical and biological stocks this week, 34 rose, accounting for 7.8%.
The top ten medicine stocks with the top ten medicine stocks rising in the week before the week’s top ten medicine stocks are: Shanghai Yizhong Pharmaceutical Co.Ltd(688091) \ (+ 8.39%), China Resources Double-Crane Pharmaceutical Co.Ltd(600062) (+ 7.67%), Sunflower Pharmaceutical Group Co.Ltd(002737) (+ 7.48%); The pharmaceutical stocks with the top ten medicine stocks falling in the top ten of the top ten medicine stocks are: st and best (- 38.19 percent (- 38.19 percent (- 38.19 percent (- 38.19 percent (- 38.19 percent), Dali Pharmaceutical Co.Ltd(603963) (- 23.25%), Lanhai Medical Investment Co.Ltd(600896) (- 22.41%), Nanjing Hicin Pharmaceutical Co.Ltd(300584) (- 21.61%). Of the 88 Hong Kong stocks this week, 10 rose, accounting for 11%.
Global covid-19 epidemic situation and vaccination
Global new cases continued to decline; Shanghai, Jilin, Heilongjiang, Guangdong, Zhejiang, Shanxi and other places. The number of vaccinations continued to grow, with the global average whole course vaccination rate of about 59% and the whole course vaccination rate in China of about 86%.
Risk tips
Policy risk, competition risk, abnormal stock price fluctuation risk.
