Original title: Brokerages intensively investigate pharmaceutical stocks and traditional Chinese medicine companies into “sweet pastry” Source: China Securities Journal · China Securities Network
Since 2022, securities companies have intensively researched listed companies, and many securities companies have focused their research on pharmaceutical stocks. The traditional Chinese medicine sector in the pharmaceutical field has performed strongly since November 2021, and in the survey, traditional Chinese medicine companies are the focus of various securities companies.
Brokers are busy with research
According to the data of Oriental Fortune Choice, many securities companies have investigated more than a dozen or even dozens of listed companies. Among them, pharmaceutical stocks appear most frequently. Some securities companies investigate multiple pharmaceutical stocks in one day.
For example, China Merchants Securities investigated 4 pharmaceutical companies on January 5, namely Huadong Medicine, Teyi Pharmaceutical, Xintian Pharmaceutical and Tailin Bio; Industrial Securities investigated 3 pharmaceutical companies on January 5, respectively It is Huadong Medicine, Aier Ophthalmology and Kefu Medical; CITIC Securities investigated 3 pharmaceutical companies on January 12, namely Puluo Pharmaceutical, Boya Bio and Yingkang Life.
Not only brokers are paying attention to and investigating pharmaceutical stocks, but other institutions are also focusing on pharmaceutical stocks. Since 2022, there have been 16 listed companies that have received more than 100 research institutions, 5 of which are pharmaceutical companies. For example, Mindray Medical has received 427, Huadong Medicine has reached 379, and Puluo has reached 181. Jiu’an Medical has reached 161, and Teyi Pharmaceutical has reached 101. Jiu’an Medical and Teyi Pharmaceutical are both recent hot stocks. Teyi Pharmaceutical has increased by more than 40% since November last year, while Jiu’an Medical has increased by more than 1,000% since November last year.
Optimistic about the traditional Chinese medicine sector
The traditional Chinese medicine sector, as the most popular sector in the pharmaceutical field recently, has been unanimously optimistic about the securities companies.
Regarding the investment opportunities in the pharmaceutical field in the first half of 2022, Caitong Securities said that there are mainly two aspects: first, deep value, which can be understood as a sufficiently low valuation, a low stock price position, and a good chip structure. Industries with low valuations include traditional Chinese medicine. , blood products, pharmacies, etc.; the second is the growth of consumption. Some companies have transferred their product channels to pharmacies and the Internet. Most of the companies that can successfully transform are traditional Chinese medicine consumer goods and consumer medical device companies.
Southwest Securities said that it will continue to be optimistic about the traditional Chinese medicine sector in January. From a valuation perspective, the traditional Chinese medicine sector has experienced years of correction since 2015, and the current price-earnings ratio (TTM) is 34.2 times. At the same time, from a fundamental point of view, there are three major opportunities. First, upstream Chinese medicinal materials ushered in price increases, and downstream products have raised prices; second, downstream channel inventory clearance is coming to an end, inventory turnover has accelerated, and it is expected to usher in a replenishment cycle; third, The mixed reform of state-owned enterprises has released dividends, and equity incentives have been implemented one after another, which has greatly released the enthusiasm of employees, and is expected to be realized on the performance side in the future.
source:China Securities Journal · China Securities Network
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