Key investment points:
Monthly core view in March. Recently, the covid-19 epidemic situation in China has been repeated, but the policy of “dynamic clearing” has not changed. The epidemic situation in Shanghai has shown marginal improvement characteristics. It is suggested to continue to pay attention to covid-19 oral drug related companies, including Shanghai Junshi Biosciences Co.Ltd(688180) ( Shanghai Junshi Biosciences Co.Ltd(688180) ), Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) ( Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) ); At the same time, pay attention to the recovery of routine medical services brought by the marginal improvement of the epidemic situation. It is suggested to focus on Aier Eye Hospital Group Co.Ltd(300015) ( Aier Eye Hospital Group Co.Ltd(300015) ) and Shanghai Runda Medical Technology Co.Ltd(603108) ( Shanghai Runda Medical Technology Co.Ltd(603108) ). Focus on listed companies related to unknown hepatitis in children, such as Xiamen Amoytop Biotech Co.Ltd(688278) ( Xiamen Amoytop Biotech Co.Ltd(688278) ).
Market review: in March (from March 1 to March 31, 2022), Shenwan biomedical industry index rose by 2.60%, while Shanghai and Shenzhen 300 fell by 6.22% in the same period, outperforming Shanghai and Shenzhen 300 by 8.82 percentage points. The overall performance of the industry ranked third among the 28 Shenwan industry indexes, significantly higher than that of the previous month.
Valuation analysis of pharmaceutical industry. From the PE trend of Shenwan biomedical index in recent ten years, as of March 25, 2022, the dynamic PE of the industry was 31.05 times, which was at a relatively low level in recent 10 years and fluctuated compared with the previous month. Considering the wide spread range of new strains and the urgency of resumption of work and production, it gave the industry an investment rating of “synchronous market”. However, different sub industries are also divided.
Risk tip: the epidemic situation and virus variation exceed expectations, Sino US political risk and national policy change risk.
