Core view
Biweekly performance of the sector: in the past two weeks, the CSI 300 index fell by 4.32%, the pharmaceutical and biological (Shenwan) index fell by 1.62%, the relative income compared with the CSI 300 was 2.7%, and the industry ranked 9th. In terms of molecular sector, the eight Shenwan pharmaceutical sub industries have been divided in recent two weeks. Among them, SW medical device II, SW pharmaceutical commercial II and SW chemical agents increased by 2.76%, 1.43% and 0.03% respectively, and the other sectors were negative returns. Among them, SW pharmaceutical service II increased the last, down 8.74%. On the whole, the performance of most sub sectors is stronger than the market.
Weekly tracking of individual stocks: 1) from the perspective of the rise and fall of individual stocks: in the past two weeks, 285 stocks in the pharmaceutical industry A-Shares (including the science and Innovation Board) rose positively and 143 stocks fell. The top five stocks in the last two weeks are Asahi bio (+ 111.42%), Zhejiang Yatai Pharmaceutical Co.Ltd(002370) (+ 107.59%), Hangzhou Biotest Biotech Co.Ltd(688767) (+ 107.44%), Beijing Hotgen Biotech Co.Ltd(688068) (+ 106.32%) and Shanghai Kaikai Industry Company Limited(600272) (+ 100.97%); The top five stocks with declines were Guangzhou Kingmed Diagnostics Group Co.Ltd(603882) (- 24.81%), Xi'An International Medical Investment Company Limited(000516) (- 24.12%), Yanan Bicon Pharmaceutical Listed Company(002411) (- 22.33%), Asymchem Laboratories (Tianjin) Co.Ltd(002821) (- 19.65%) and Pharmablock Sciences (Nanjing) Inc(300725) (- 19.36%). 2) Shares held by Lu Gutong: in the past two weeks, the total net purchase of northbound funds was 1.849 billion yuan, including 7.865 billion yuan of inflow and 9.714 billion yuan of outflow. From the position of land stock connect, the top five holdings are Jenkem Technology Co.Ltd(688356) , Jiangsu Nhwa Pharmaceutical Co.Ltd(002262) , Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Contec Medical Systems Co.Ltd(300869) , Hangzhou Tigermed Consulting Co.Ltd(300347) . The top five holdings reduction are Dong-E-E-Jiao Co.Ltd(000423) , Aier Eye Hospital Group Co.Ltd(300015) , Berry Genomics Co.Ltd(000710) , Renhe Pharmacy Co.Ltd(000650) , Yixintang Pharmaceutical Group Co.Ltd(002727) . 3) Block transactions: in the past two weeks, 55 companies in the pharmaceutical and biological industry have had block transactions, with a total transaction amount of 3.575 billion yuan. The top five block transactions are Walvax Biotechnology Co.Ltd(300142) , Fujian Cosunter Pharmaceutical Co.Ltd(300436) , Hanyu pharmaceutical, Cansino Biologics Inc(688185) - u, Bgi Genomics Co.Ltd(300676) .
Sector valuation level: the PE (TTM) valuation of the pharmaceutical and biological sector has reached 34.48x in recent two weeks, still lower than the average pe38.48x in recent five years 10X。 The valuation of the sector has been stable in the past two weeks, still at a historically low level, lower than the industry's average PE in recent five years for 25 consecutive weeks. Compared with the same industry, the premium rate of pe-ttm in the pharmaceutical and biological sector relative to all A-Shares excluding finance is 15.89%, and the premium rate relative to CSI 300 is 155.28%.
Industry highlights: 1) new regulations on the distribution of medical insurance balance: if the purchase quantity is not completed and centralized purchase is not supported, one vote veto!; 2) Pilot varieties of medical insurance payment standards: 24 in Guizhou and 29 in Jiangxi; 3) 2022 centralized purchase target release! By the end of the year, there will be more than 350 in each province! Dental implants are about to begin; 4) Annual sales of 6 billion! Breaking through the barrier of consistency evaluation of Chinese unique varieties, Levamlodipine besylate tablets were the first to pass the evaluation; 5) FDA awarded sibman c-car039 advanced regenerative medicine therapy (rmat) and fast track (FT) qualification.
Since 2022, the valuation of the sector has continued to differentiate, and the market rotation may usher in a window period.
Since 2022, the overall pharmaceutical and biological sector has been affected by capital and sentiment, with weak trend and intensified sector differentiation. Among them, benefiting from the repeated impact of policies and epidemic situations, and the valuation is at the bottom, the performance of related targets of traditional Chinese medicine and anti epidemic theme is bright, and the valuation starts to rise from the bottom.
From the perspective of molecular sector valuation, the valuation of SW medical R & D outsourcing and SW medical equipment with heavy positions of institutions in the early stage has been corrected, and the capital has flowed out, while the valuation of traditional Chinese medicine and pharmacies with policy support or immunization has continued to improve. In addition, due to the repeated impact of epidemic situations outside China, the valuation of SW in vitro diagnosis, SW API and other sectors has also improved.
From the perspective of sub sector peg, the peg of most sectors is about 1, which is in a reasonable low range, and the configuration value is prominent. Among them, SW medical equipment (3.11), SW hospital (1.49) and SW API (1.27) are relatively high, while SW in vitro diagnosis (0.52), SW vaccine (0.67) and SW pharmaceutical circulation (0.67) are relatively low. Investment proposal and investment object
It is suggested to pay attention to: Jiangsu Hengrui Medicine Co.Ltd(600276) (600276, Unrated), Wuxi Apptec Co.Ltd(603259) (603259, Unrated), Brightgene Bio-Medical Technology Co.Ltd(688166) (688166, Unrated), Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) (002020, buy), Beijing Balance Medical Technology Co.Ltd(688198) (688198, buy), Beijing Labtech Instruments Co.Ltd(688056) (688056, buy), Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436, Unrated), Dong-E-E-Jiao Co.Ltd(000423) (000423, Unrated), Tasly Pharmaceutical Group Co.Ltd(600535) (600535, Unrated), Zhejiang Jolly Pharmaceutical Co.Ltd(300181) (300181, Unrated), etc.
Risk tips
The R & D, promotion and listing of new drugs were less than expected, the industry volume procurement policy was more than expected, and the epidemic broke out again
