Key investment points:
Pharmaceutical biology increased by 2.41% year-on-year, and covid-19 detection became the strongest theme in the near future
This week, the pharmaceutical and biological (Shenwan) increased by 2.41% year-on-year, with a good performance. Among them, the medical device sub industry increased by 7.71%, which is the most prominent sector. We judge that it is closely related to the overseas explosion of the new wave of epidemic and multiple outbreaks in China.
Industry summary last week: covid-19 epidemic broke out again, and the performance of anti epidemic companies is expected to maintain high growth
According to who data, affected by the Omicron variant strain, as of January 14, 2022, there were 19.11 million confirmed cases of covid-19 pneumonia in a single week, a record in 25 months. In China, 1895 confirmed cases of covid-19 pneumonia were added in a week, and the new wave of epidemic was sporadic in many places, affecting 6 provinces and 12 cities across the country.
China's covid-19 testing related companies play an important role in the anti epidemic process outside China. The upper, middle and lower reaches of the industrial chain are expected to obtain new orders from the new wave of epidemic. Andon Health Co.Ltd(002432) on January 14, the announcement of major contracts was issued, and the order of 8.1 billion yuan signed with American ACC attracted strong attention from the market.
Outlook for next week: focus on scientific research services, upstream raw materials and high-quality private medical care
Covid-19 detects huge orders for downstream products, relevant upstream and midstream industrial chains (such as antigen, antibody, NC membrane, packaging materials, etc.) will be deeply excavated by the market, and scientific research services and upstream raw materials are expected to run out of excess returns. The same type of enterprises applying for household self-test antigen overseas will also be paid special attention. The medical service industry continues to be under pressure. We believe that a few high-quality private chains forming C-Port Monument and brand still have strong toughness, can resist the risks of policies, events and operations, continue to maintain steady growth, and can pay active attention after adjustment.
Monthly gold shares in January
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760): a multi category, multi market and multi-level comprehensive device leader, benefiting from the construction of public health system, will continue to maintain a relatively stable growth and adjust to the bottom range of multi-year valuation. The valuation from 2022 to 2023 is 39x and 31x, maintaining the recommendation.
Zhejiang Gongdong Medical Technology Co.Ltd(605369) (605369): large quantities of customized medical device consumables bring rapid growth of performance. Within two years of covid-19 epidemic, China's stable and high-quality supply chain delivery has enabled global multinational giants to start localizing some links of the supply chain, and Gongdong has the ability to provide some customized high-quality plastic consumables. The valuation of 2022-2023 is 41x, 31x, maintaining the recommendation.
Risk tips
Market shock risk, covid-19 epidemic fluctuation risk, order termination risk, order unsustainable risk, overseas covid-19 product access policy adjustment, production and operation quality normative risk, operation qualification punishment risk, etc.
