Business Club September 13 News

Report points

In August, the medical sector continued to strengthen

In August, the pharmaceutical sector continued its rebound in July and continued to outperform the broader market. The health care index was close to the year's high. Since the advent of the industry’s bad policy in early June, the medical sector staged a V-shaped trend. The better middle report performance and the gradual digestion of bad policies were the main reasons for the current round of market conditions. The concept of “super bacteria” contributed to the strengthening of pharmaceutical stocks.

Some vitamin varieties have increased in price

Vitamin A price rebounded to 135 yuan/kg, with a strong trend; vitamin E prices rebounded slightly to 120 yuan/kg, the tight supply of the market was eased, and short-term vitamin E prices are expected to remain strong, taking into account inventory issues, prices The probability of a sharp increase is also small; vitamin C prices continue to decline; riboflavin and calcium pantothenate prices are still at low levels.

Pay attention to the progress of the pharmaceutical industry policy

On August 19th, Minister of Health Chen Hao disclosed at the "China Health Forum 2010" that it will appropriately expand the scope of basic medicines in the list of drugs, and pay close attention to the introduction of a more comprehensive list of national essential drugs. The “12th Five-Year Plan” for pharmaceutical circulation and the plan for the revitalization of the biomedical industry may soon be introduced in the near future.

In the second half of the year, the pharmaceutical industry is expected to usher in a number of substantive and favorable policies.

September medical investment strategy

The current market has a higher degree of attention to style conversion, and fears that pharmaceutical stocks will fall as much as they did in June. Our view is that historically it is difficult to simply repeat itself in the context of the renewed intensification of negative policy expectations. We believe that under normal circumstances, the performance of pharmaceutical stocks in September may be weaker than that of the broader market, but the probability of a sharp decline is not significant. Of course, if pharmaceutical stocks continue to outperform the broader market, it is recommended to reduce the allocation ratio to avoid risks.

September medical combination

For the long-term configuration, we are still optimistic about high-quality companies like Rentang, Tasly, Jiangcai, Renhe Pharmaceutical (such selections include Dong'e Ejiao, Pien Tze Huang, Huadong Medicine, Ma Yinglong, etc.). For the short-to-medium-term allocation, we believe that the current relative valuation of pharmaceutical stocks is not cheap, and companies with greater flexibility may be out of the bounds of price-earnings ratio. It is recommended to pay attention to Haixiang Pharmaceuticals, which has greater performance flexibility, Guizhou Braun, Xinbang Pharmaceutical, etc., and Wuhan Jianmin, which has continued to improve, deserves attention.