At the close on January 14, the Chinese medicine sector rose more than 3% again, and several stocks such as Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) rose by the limit. Since November last year, the popularity of the traditional Chinese medicine sector has continued, with rising prices of traditional Chinese medicine and frequent policy dividends, which are considered to be the factors behind the rise of the traditional Chinese medicine sector. How long can the heat of traditional Chinese medicine plate be maintained has also become the focus of the industry.
On January 14, the heat of A-share traditional Chinese medicine plate continued, and the traditional Chinese medicine plate rose by more than 3%. In terms of individual stocks, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Jinghua Pharmaceutical Group Co.Ltd(002349) and other individual stocks rose by the limit. In addition, according to wind data, since November 2021, 72 of the 79 stocks in the traditional Chinese medicine sector have risen, and the index of the traditional Chinese medicine sector has increased by more than 15%.
Kunming Longjin Pharmaceutical Co.Ltd(002750) the cumulative increase since November 2021 has exceeded 200%, and the share price has risen from 7.09 yuan / share on November 1 to 22.50 yuan / share at the close on January 14. Since December 27, 2021, Kunming Longjin Pharmaceutical Co.Ltd(002750) has issued four stock price change announcements, repeatedly indicating that the recent operation is normal and the internal and external business environment has not changed significantly. Similarly, Jinghua Pharmaceutical Group Co.Ltd(002349) and Gansu Longshenrongfa Pharmaceutical Industry Co.Ltd(300534) also gained a significant increase, with a cumulative increase of more than 100%.
In 2021, favorable policies supporting the development of traditional Chinese medicine were frequently introduced. Such as the notice on several policies and measures to accelerate the development of characteristics of traditional Chinese medicine; Opinions on Further Strengthening the work of traditional Chinese medicine in general hospitals and promoting the coordinated development of traditional Chinese and Western medicine; Implementation plan for cultural communication of traditional Chinese medicine (2021-2025); The State Medical Security Bureau and the State Administration of traditional Chinese Medicine issued the guiding opinions on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, and proposed to include the qualified decoction pieces of traditional Chinese medicine, Chinese patent medicine and traditional Chinese medicine preparations of medical institutions into the catalogue of medical insurance drugs. The industry believes that this is an important reason to boost the rise of traditional Chinese medicine.
At the level of innovative drugs of traditional Chinese medicine, in 2021, the State Food and Drug Administration approved a total of 11 innovative drugs of traditional Chinese medicine to be listed, becoming the year in which innovative drugs of traditional Chinese medicine have been approved the most in recent five years, more than the sum of approvals in 2017-2020. In addition, the rise in the price of traditional Chinese medicine is also considered to be a major boost factor for the rise in the traditional Chinese medicine sector.
For the problem of how long the heat of the Chinese medicine plate will last for a long time, China Aviation Securities believes that the current valuation level of the Chinese medicine plate is still reasonable, and there has not been a bubble.
