Summary
[Pharmaceutical Industry Weekly Report: Three major directions are optimistic about the volatile market]The three major directions are optimistic about the volatile market. The pharmaceutical sector fluctuated this week. The traditional Chinese medicine sector, which was highly popular in the previous period, continued to perform well. The CXO sector also continued to rebound slightly. The independent and controllable supply chain sector was affected by Tofflon’s fixed increase, and the medicine machine sector experienced a slight adjustment. On the whole, the current valuation of the pharmaceutical sector is 29 times, which has gradually been digested below the historical center, and the position ratio is at a historically low level, and the configuration cost performance is outstanding. Entering March, the 2021 annual report and the 2022 first quarter report will be gradually disclosed, and it is recommended to pay attention to performance expectations. At the current point in time, we are optimistic about three major directions: 1. In the traditional Chinese medicine sector, we recommend Taiji Group, Shouxiangu, China Resources Sanjiu, Zhongxin Pharmaceutical, etc.; 2. The supply chain is independent and controllable, and we recommend Chutian Technology, Tofflon, etc.; 3. Low valuation, recommend Runda Medical, Jianhui Information, etc.
Market review: This week, the pharmaceutical biological index rose 0.18%, outperformingCSI 300Since the beginning of 2022, the pharmaceutical industry has fallen by 11.62%, underperforming the CSI 300 Index by 2.63 percentage points, ranking 25th in the industry’s rise and fall. This week’s pharmaceutical industry valuation level (PE- TTM) was 28.87 times, the premium rate relative to all A shares was 86% (-0.5pp), and the relative exclusionBankAfterwards, the premium rate of all A shares was 41% (0pp), and the premium rate relative to CSI 300 was 133% (-0.4pp). From the perspective of the pharmaceutical sub-industry, five sub-industry sectors rose this week, and pharmaceutical circulation was the sub-industry with the largest increase, with an increase of about 9.1%. The sub-sectors of APIs and in vitro diagnostics ranked second and third in terms of growth, about 5.5% and 1.8% respectively.
The sub-sector with the biggest year-to-date gain is pharmaceutical distribution, up about 0.7%.
Shock market, optimistic about the three major directions.The pharmaceutical sector fluctuated this week, and the previous heat was relatively hightraditional Chinese medicineThe sector continued to perform well, the CXO sector also continued to rebound slightly, and the supply chain independent and controllable sector was affected byTofflonAffected by the fixed increase, there was a slight adjustment in the pharmaceutical machine sector. On the whole, the current valuation of the pharmaceutical sector is 29 times, which has gradually been digested below the historical center, and the position ratio is at a historically low level, and the configuration cost performance is outstanding.Entering March, the 2021 annual report and the 2022 first quarter report will be gradually disclosed. It is recommended to pay attention toperformanceexpected. the current time,Optimistic about three directions: 1.traditional Chinese medicineplate, recommendedTai Chi Group，Shouxiangu，China Resources Sanjiu，Zhongxin Pharmaceuticaletc.; 2. The supply chain is autonomous and controllable, recommendedChutian Technology、Tofflonetc.; 3. Low valuation, recommendedRunda Medical，Health InformationWait.
Recommended combination this week:Runda Medical(603108)、Tai Chi Group(600129)、Shouxiangu(603896)、Zhongxin Pharmaceutical(600329)、China Resources Sanjiu(000999)、Chutian Technology(300358)、Health Information(605186)、Hisco(002653)。
Risk warning: risk of drug price reduction; risk of lower-than-expected progress in the implementation of medical reform policies; risk of R&D failure.
(Article Source:Southwest Securities）