the traditional Chinese medicine sector, which has been in an upward trend since the end of October last year, began to show signs of decline today.
On January 13, the traditional Chinese medicine plate fell at the opening, among which Yiling pharmaceutical, Dong-E-E-Jiao Co.Ltd(000423) , Chongqing Pharscin Pharmaceutical Co.Ltd(002907) hit the limit one after another.
As of the closing, the traditional Chinese medicine sector closed at 1509.03, down 3.58%. According to the data of Dongcai market list, the traditional Chinese medicine sector is at the top of the decline list.
the traditional Chinese medicine sector fell
Since the end of October 2021, the index of traditional Chinese medicine sector has been in a shock upward trend, and individual stocks have been rising and falling slightly in the past two days. The data show that in the past two months, 59 of the 70 stocks in the traditional Chinese medicine sector have increased, accounting for 84%, of which 37 have increased by more than 10% and 15 by more than 30%.
However, on January 13, 2022, the traditional Chinese medicine plate opened lower. Dongcai market data show that a total of 62 traditional Chinese medicine enterprises closed down, and only 8 traditional Chinese medicine enterprises closed up up. Among them, Yabao Pharmaceutical Group Co.Ltd(600351) closed down by the limit, Tianjin Zhongxin Pharmaceutical Group Corporation Limited(600329) , Henan Lingrui Pharmaceutical Co.Ltd(600285) , Dong-E-E-Jiao Co.Ltd(000423) , Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) fell by more than 8%.
Data source: choice
In fact, the decline of the traditional Chinese medicine plate is also expected. Earlier, in an interview with Shi lichen, a medical strategy expert, by the reporter of the international finance news, he mentioned: “this increase is related to seasonality and policy, so it is short-term and will not last too long.”
can the performance support the stock price
While the traditional Chinese medicine sector fell today, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) hit the daily limit. As of the afternoon closing, its share price closed at 18.24 yuan / share, down 6.71%.
Data source: China stock market news
However, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) also “touched” a lot of benefits when traditional Chinese medicine stocks ushered in the trading tide one after another. The data show that in three consecutive trading days on January 10, 11 and 12, 2022, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) closing price has deviated from the value by more than 20%. According to the analysis of some investors, the successive trading limit of Chongqing Pharscin Pharmaceutical Co.Ltd(002907) is inseparable from the hot stocks of traditional Chinese medicine, medicine and covid-19 virus prevention and control.
But in terms of the performance of Chongqing Pharscin Pharmaceutical Co.Ltd(002907) , can it support the current stock price rise?
Chongqing Pharscin Pharmaceutical Co.Ltd(002907) (hereinafter referred to as Chongqing Pharscin Pharmaceutical Co.Ltd(002907) ), is a comprehensive pharmaceutical enterprise integrating drug R & D, production and sales, covering pharmaceutical industry, pharmaceutical commerce and pharmaceutical retail. At present, the company’s main products include weidimei (aluminum magnesium carbonate tablets), weikuaishu (Aluminum Magnesium Carbonate Chewable Tablets), Ganjie Bingmei tablets, tongxieling granules, gabexate mesylate for injection, etc.
According to the data, from 2018 to 2020, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) had revenue of 703 million yuan, 842 million yuan and 882 million yuan respectively, and its net profit was 137 million yuan, 170 million yuan and 119 million yuan respectively. It can be seen that its performance has not increased significantly in recent three years.
In terms of the main business composition, the pharmaceutical industry contributes the most to Chongqing Pharscin Pharmaceutical Co.Ltd(002907) , with a revenue of 369 million yuan, accounting for 84.82%. Followed by pharmaceutical business, with a revenue of 61.4798 million yuan, accounting for 14.11%.
In terms of product types, digestive system drugs and otolaryngology drugs occupy the main force, accounting for 22.74% and 21.38% respectively. However, according to the mid-term report data of 2021, the proportion of digestive drugs began to decline, while the proportion of drugs for the nervous system, hormones and drugs regulating endocrine function increased rapidly, with a year-on-year increase of 38.10% and 24.38% respectively.
when will there be a profit period
In June 2021, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) announced that it would invest 12.5 million yuan with its own funds to participate in the capital increase of Shangyi technology, which would obtain the exclusive authorization of the two products of Shangyi technology in Greater China, and the exclusive cooperation right of the special medical purpose food (hereinafter referred to as “special medical food”) in the field of digestive tract, maternal and child, weight loss and lipid reduction, Establish special medical food production line and officially enter the field of special medical food.
According to AI media consulting data, the market scale of China’s special medical food industry has increased from 2.59 billion yuan in 2016 to 7.72 billion yuan in 2020, an increase of about three times, and is expected to increase to 10.01 billion yuan in 2021.
It is reported that from R & D to production line construction and passing the relevant production line certification, to the successful approval of special medical food registration, the time consumed during the period is about 2-3 years. The whole R & D to marketing cycle is no less than that of generic drugs, which leads to high policy barriers, capital barriers and technical barriers in the industry.
Although pharmaceutical companies have inherent advantages in cutting into this track, before Chongqing Pharscin Pharmaceutical Co.Ltd(002907) , Jiangsu Hengrui Medicine Co.Ltd(600276) , Zhejiang Hisun Pharmaceutical Co.Ltd(600267) , Sihuan medicine and other pharmaceutical companies have entered the field of special medical food. When other enterprises join the game one after another, what are the odds of Chongqing Pharscin Pharmaceutical Co.Ltd(002907) winning?
According to relevant experts, from the perspective of clinical practice, products such as special medical food are often used for patients with critical conditions. As long as they are the therapeutic diet recommended by doctors or nutritionists, the acceptance of patients is relatively high. However, the price of special medical food is high, and only a few products are included in medical insurance, which can not meet the needs of more patients. Therefore, this has become one of the difficulties it is facing.
However, this still does not affect the layout of Chongqing Pharscin Pharmaceutical Co.Ltd(002907) in the special medical food track. According to the data in the 2021 interim report, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) has obtained the exclusive authorization of Shangyi technology in Greater China (including Hong Kong and Macao) to cooperate in the research and development of special medical foods based on the existing “short peptide version of Zukang Youjia liquid diet” and “crystal version of Zukang Youjia liquid diet”, and has complete marketing rights after these special medical foods are listed, Be fully responsible for the commercial operation of such special medical food, including but not limited to self-supporting or cooperative sales with dealers.
In addition to the overweight special medical food track, Watson pharmaceutical has also begun to increase its full power in innovative drugs and generic drugs, and its R & D investment has also increased. According to the data, in 2018, its R & D investment was still 15.2162 million yuan. By 2020, its R & D expenses had increased to 36.4776 million yuan. In the third quarter of 2021, it still increased to 25.3636 million yuan, an increase of 10.57% year-on-year.
As of the mid-2021 report, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) has four self-developed cancer related preclinical innovative drug projects and several generic drug research projects.
But at the same time, it should be noted that although Chongqing Pharscin Pharmaceutical Co.Ltd(002907) is constantly expanding its product field, the secondary market has always been in a “tepid” state. In the whole year of 2021, except for the dividend of 0.028 yuan / share on June 24, its share price has not increased significantly, which can be seen from the investors\’ attitude towards Chongqing Pharscin Pharmaceutical Co.Ltd(002907) .
Now, with the advent of the limit tide of traditional Chinese medicine, Chongqing Pharscin Pharmaceutical Co.Ltd(002907) has caught up with the concept stocks of traditional Chinese medicine, medicine and covid-19 virus, and the share price has risen sharply. In February 2021, the lowest share price is still at the low level of 10.27 yuan / share, and the highest reached 21.85 yuan / share on January 7, 2022, with an increase of 52.99%, and the share price has almost doubled. But after this wave of market, can its share price remain high?
