Core view
View of Medicine Week: Ophthalmology and traditional Chinese medicine are expected to benefit from the release of the national health plan of the 14th five year plan. On May 20, the general office of the State Council issued the national health plan of the 14th five year plan, which clearly put forward the overall objectives and detailed rules of the national health plan during the 14th Five Year Plan period. Among many development indicators, we believe that the following indicators deserve attention: first, the overall myopia rate control target of children and adolescents in China, and second, the proportion of clinical departments of traditional Chinese medicine in public general hospitals above level II.
In terms of Ophthalmology, we believe that drugs and medical devices used for myopia prevention and control will continue to benefit. Drugs: Shenyang Xingqi Pharmaceutical Co.Ltd(300573) (low concentration atropine in-hospital preparations have entered the stage of rapid growth, with obvious first mover advantage; atropine eye drops delay the progression of myopia in children, the indications are in clinical phase III, and the progress is in the leading position). Medical devices: 1 Autek China Inc(300595) (corneal shaping lens keeps growing rapidly); 2. Eyebright Medical Technology(Beijing) Co.Ltd(688050) (after the corneal shaping lens is approved, it can be used rapidly; the clinical pre-test results of defocus lens are excellent, which is expected to become a single product with great potential). In terms of traditional Chinese medicine, it is suggested to pay attention to: 1 The company has a sound sales system, is a leader in the research and development of innovative traditional Chinese medicine in all aspects, including theoretical research, new drug discovery and transformation, clinical trials, evidence-based medicine evidence accumulation, and has differentiated advantages in subdivided fields. It is suggested to pay attention to Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) ; (2) Companies with obvious channel advantages and fully verified sales ability are recommended to pay attention to Hubei Jumpcan Pharmaceutical Co.Ltd(600566) .
Market review: the pharmaceutical biological index fell by 2.01% this week, ranking 31st in all Shenwan industries. Since 2022, the pharmaceutical and biological index has fallen by 21.58%, 4.12 percentage points lower than the CSI 300 index, ranking 25th in all Shenwan industries.
In terms of subdivided industries, all subdivided sectors of the pharmaceutical and biological industry fell throughout the week, and the decline of chemical agents was small, 0.82%; Chemical raw materials showed the weakest performance, down 4.18%. Since 2022, the performance of chemical API and pharmaceutical business has been the best, with a year to date decline of 10.57% and 14.50% respectively; Biological products was the weakest performing sub industry, down 27.31%. Biological products, chemicals and medical services underperformed the pharmaceutical and biological (SW) industry index.
From the performance of individual stocks, the top five stocks that rose last week were: Zhuhai Hokai Medical Instruments Co.Ltd(300273) (21.74%), Zhejiang Hisun Pharmaceutical Co.Ltd(600267) (21.48%), Winsan(Chengdu) Medical Science And Technology Company Limited(600767) (16.03%), Shandong Sinobioway Biomedicine Co.Ltd(002581) (15.85%) and Shanghai Kehua Bio-Engineering Co.Ltd(002022) (13.90%). The top five stocks with declines are: Zhejiang Ausun Pharmaceutical Co.Ltd(603229) (- 24.56%), Hainan Shuangcheng Pharmaceuticals Co.Ltd(002693) (- 21.12%), Luoxin Pharmaceuticals Group Stock Co.Ltd(002793) (- 17.76%), Jiangxi Synergy Pharmaceutical Co.Ltd(300636) (- 16.67%) and Inner Mongolia Furui Medical Science Co.Ltd(300049) (- 16.67%).
Valuation: at present, the valuation of the pharmaceutical and biological sector is at a historical low. As of May 20, 2022, the PE (TTM) and Pb (LF) of the whole pharmaceutical and biological (SW) industry are 23.09 times and 3.13 times respectively. At present, the valuation has been at the bottom of history, which has fully highlighted the investment value.
Risk warning: medical policy risk; Lower prices than expected; Systemic risk.
