Market Review
Last week (April 18-22, 2022), the pharmaceutical and biological sector (Shenwan) fell 7.14%, the Shanghai Composite Index fell 3.23%, the Shenzhen Component Index fell 4.56%, the Shanghai and Shenzhen 300 fell 3.32%. The pharmaceutical and biological sector lost 3.82 percentage points to the Shanghai and Shenzhen 300 index, ranking 28th among the weekly rises and falls of Shenwan’s 31 primary sub industries.
This week’s view
The valuation of innovative drugs is nearly low, and the allocation value is gradually highlighted. On April 22, 2022, Jiangsu Hengrui Medicine Co.Ltd(600276) released the financial report for 2021. The annual revenue was 25.906 billion yuan, a year-on-year decrease of 6.59%, and the net profit attributable to the parent company was 4.53 billion yuan, a year-on-year decrease of 28.41%. The revenue and net profit of Hengrui fell for the first time. Affected by the high-pressure policies such as centralized purchase and medical insurance negotiation, the market value of China’s innovative pharmaceutical enterprises has generally decreased significantly, causing great pessimism in the market, which may last for a long time, and the short-term correction range will not be too large. However, the value of the configuration of high-quality companies in the industry has gradually become prominent. It is suggested to focus on the leading companies with rich product pipelines, first in class and best in class products with high clinical value and sufficient cash reserves. Related subject Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, Xinda biology.
The epidemic situation is capricious, and covid-19 industrial chain is still hot. In view of the epidemic situation, China has unswervingly adhered to the general policy of “dynamic clearing”. Under strict epidemic prevention measures, we have seen that the epidemic situation in Shanghai has gradually improved and the actual number of new patients (asymptomatic + confirmed) every day has gradually decreased. Under the background of China’s epidemic prevention policy, in view of the capricious epidemic situation, the demand for covid-19 related vaccines, nucleic acid and antigen testing products is still strong, and covid-19 industrial chain enterprises continue to benefit. Related objects: Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Apeloa Pharmaceutical Co.Ltd(000739) , Nanjing Vazyme Biotech Co.Ltd(688105) , etc.
Announcement of key companies
[ Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ] in 2021, the company’s operating revenue was 25.270 billion yuan, a year-on-year increase of 20.18%; The net profit attributable to the parent company was 8.002 billion yuan, with a year-on-year increase of 20.19%. From January to March 2022, the operating revenue was 6.943 billion yuan, with a year-on-year increase of 20.10%; The net profit attributable to the parent company was 2.105 billion yuan, a year-on-year increase of 22.74%. [ Asymchem Laboratories (Tianjin) Co.Ltd(002821) ] from January to March 2022, the operating revenue was 2.062 billion yuan, with a year-on-year increase of 165.28%; The net profit attributable to the parent company was 499 million yuan, a year-on-year increase of 223.59%. [ Jiangsu Hengrui Medicine Co.Ltd(600276) ] in 2021, the company’s operating revenue was 25.906 billion yuan, a year-on-year decrease of 6.59%; The net profit attributable to the parent company was 4.53 billion yuan, a year-on-year decrease of 28.41%; From January to March 2022, the operating revenue was 5.479 billion yuan, a year-on-year decrease of 20.93%; The net profit attributable to the parent company was 1.237 billion yuan, a year-on-year decrease of 1.35%.
Key industry news
[medical devices] on April 20, the State Food and Drug Administration reviewed two covid-19 virus antigen detection reagent products again. So far, the State Food and drug administration has approved 29 covid-19 virus antigen detection reagent products. [chemical pharmacy] the national medical insurance administration has made unified deployment and coordination for the centralized procurement of local alliances, extended drugs from chemical drugs to traditional Chinese medicine, and expanded the range of medical equipment
[pharmaceutical business] the measures for the supervision and administration of pharmaceutical retail chain operation in Guangdong Province will be implemented soon, emphasizing the clarification of chain operation behavior and mode and the recognition of franchise behavior.
Risk tips
Policy disturbance; Recurrence and spread of the epidemic; Macroeconomic downturn, etc.
