After experiencing the previous sharp rise, the traditional Chinese medicine sector has made a significant adjustment recently. On January 13, the traditional Chinese medicine sector fell by 3.19%, and individual stocks in the sector also showed some differentiation. Individual stocks with good early performance such as Yabao Pharmaceutical Group Co.Ltd(600351) , Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) , Henan Lingrui Pharmaceutical Co.Ltd(600285) , Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) all fell by more than 6%.
So, with this round of adjustment, the Chinese medicine sector continues to be hot, can the market continue?
For the next 2022, how should investors grasp the main line of investment in the pharmaceutical industry?
Recently, Du Xiangyang, assistant director of Southwest Securities Co.Ltd(600369) and chief pharmaceutical officer, said in the live broadcast of red weekly that the previous sharp rise in the traditional Chinese medicine sector was inseparable from the support of policies, and there was a general rise in the three segments of traditional Chinese medicine consumer goods, traditional Chinese medicine formula particles and traditional Chinese medicine innovative drugs.
Taking traditional Chinese medicine consumer goods as an example, its biggest advantage is that it has consumption attributes, mainly in the out of hospital market and relatively immune to medical insurance. He believes that the development of traditional Chinese medicine consumer goods will usher in three opportunities, and the future performance is expected to break out. First of all, the price of upstream Chinese herbal medicines will rise, and there is a certain expectation of price increase for upstream raw materials and downstream products in the future. Secondly, the liquidation of channel inventory is coming to an end, and the superposition of price increase expectations has accelerated the inventory turnover of the downstream of the traditional Chinese medicine plate. Third, the reform of state-owned enterprises has released dividends, and equity incentives have been implemented one after another. For example, the mixed reform of state-owned enterprises such as Yunnan Baiyao Group Co.Ltd(000538) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) has greatly released the enthusiasm of employees.
In addition, innovative traditional Chinese medicine is also a hot spot in the recent market. Under the reform of the review and approval system of traditional Chinese medicine, the approval of innovative traditional Chinese medicine has been accelerated. In 2021, the State Food and Drug Administration approved the listing of 12 new traditional Chinese medicine drugs, which became the year with the largest number of new traditional Chinese medicine drugs approved in recent five years. The approval and listing of innovative traditional Chinese medicine drugs has been significantly accelerated. In this regard, Du Xiangyang said that there is still a lot of imagination space for innovative traditional Chinese medicine. The number of approved innovative traditional Chinese medicine has accelerated. In addition to the catalytic effect of the policy, there is also the support of industrial policy. Whether it is traditional Chinese medicine innovation or chemical medicine innovation, the pace of approval has been significantly accelerated, which is also a direct signal to stimulate the stock price of such companies to rise. In the future, the market is optimistic about the development space and Prospect of innovative traditional Chinese medicine.
In addition to the above topics, Du Xiangyang also shared in detail the investment strategy of pharmaceutical stocks in 2022, that is, how to prospectively layout pharmaceutical stocks. In addition, he interpreted CXO, intermediate pharmaceutical enterprises, centralized purchase of traditional Chinese medicine, expectation of price rise of traditional Chinese medicine and other subdivided fields one by one
