From the New Third Board to the Beijing Stock Exchange, a new wave of popular pharmaceutical stocks is coming

Event: On the evening of September 2, President Xi Jinping delivered a video speech at the 2021 China International Trade in Services Global Service Trade Summit, stating that he would continue to support the innovation and development of small and medium-sized enterprises, deepen the reform of the New Third Board, and set up the Beijing Stock Exchange (below (Referred to as "Beijing Stock Exchange") to create a main position for service-innovative small and medium-sized enterprises
.

1.
Introduction of the Beijing Stock Exchange The China
Securities Regulatory Commission stated at the press conference that the Beijing Stock Exchange will firmly adhere to the market positioning of serving innovative small and medium-sized enterprises.
The company is formed, maintains the "gradual" market structure of the NEEQ basic layer, innovation layer and the Beijing Stock Exchange, and simultaneously pilots the securities issuance registration system
.
The NEEQ is an important platform for serving small and medium-sized enterprises in the capital market.
However, the number of listed companies has declined in recent years, and the "ischemic" dilemma of the NEEQ has become more and more obvious
.
As of September 9, there were 7,280 companies on the New Third Board, including 66 selected-tier companies and 1,248 innovative-tier companies
.
The establishment of the Beijing Stock Exchange will greatly improve the liquidity of the NEEQ market
.
From the perspective of positioning, the Beijing Stock Exchange serves small and medium-sized high-tech companies, which is different from the Shanghai Stock Exchange's Science and Technology Innovation Board and the Shenzhen Stock Exchange's Growth Enterprise Market
.
In terms of location, the Shanghai Stock Exchange is located in the Yangtze River Delta and the Shenzhen Stock Exchange is located in the Pearl River Delta.
After the establishment of the Beijing Stock Exchange, it will mainly radiate the northern regions
.
In addition, compared with the 1 million investment threshold of the new three-board selected layer, the investment threshold of the Beijing Stock Exchange is expected to be the same as that of the Science and Technology Innovation Board at an initial stage of 500,000, which is also conducive to rapid increase in liquidity
.

　　Figure 1: North Exchange business structure and three new board
　　two, the North Exchange pharmaceutical stocks Preview
　　2.
1 three new board pharmaceutical stocks profile
As of the end of July 2021, the number of pharmaceutical companies listed on the NEEQ is 424, accounting for 5.
72% of all listed companies.
According to the investment classification standards of listed companies in the National Equity Exchange System, the following can be further subdivided:
　　Figure 2: NEEQ classification of healthcare industry (except veterinary drugs) Data source: National Equity Exchange System official website, Zhongkang Industrial Capital Research Center uses the 2021 interim report as the performance standard.
Among the top ten companies in net assets, Chinese medicine companies and chemical raw materials companies There are 3 companies each, and a total of 6 companies have net assets exceeding 1 billion yuan.
There are 22 companies in the market that have negative net assets during the interim report period
.
Among the top ten companies in operating income, there are as many as 7 health care companies.
Only Kangze Pharmaceutical has an operating income of more than 1 billion yuan.
There are 20 companies in the market that report zero or negative revenue
.
Among the top ten companies with net profits returned to their mothers, chemical raw material pharmaceutical companies accounted for half.
The net profits of three companies including Hongyuan Pharmaceutical, Atom High-Tech and Jintongrentang exceeded 1 billion yuan, and a total of 133 companies in the market had net profits returned to their mothers.
Is negative
.

　　Figure 3: NEEQ pharmaceutical companies' core financial data ranking data source: iFind terminal, Zhongkang Industrial Capital Research Center
　　2.
2 hot segmentation areas
that may log on to the Beijing Stock Exchange Taking into account the strategic positioning of the Beijing Stock Exchange for serving small and medium-sized high-tech companies, Among the existing NEEQ pharmaceutical stocks, companies in the fields of healthcare, biotechnology, and life sciences are the most likely to have priority to log in to the Beijing Stock Exchange
.

　　2.
2.
1 In the health care
industry, the technical content of health care services and medical care technology is relatively high.
There are 10 companies related to the NEEQ
.
Among them, Huahan Plastic Surgery continued to expand in the first half of the year, with revenue of 487 million yuan, a year-on-year increase of 23.
85%, and net profit of 55.
99 million yuan, a year-on-year increase of 13.
28%.

.
Different from the model that Aier Ophthalmology has matured in vitro and then incorporated into listed companies, the company's expansion path is relatively conservative and stable, and its performance release is slow.
The current company outlets are concentrated in Jiangsu, accounting for 61% of revenue in the province
.
In the future, we will pay attention to the expansion of the company's branches in the province, and pay attention to the stability of single-store profit growth
.

　　2.
2.
2 biotech
three new board biotechnology enterprises up to 54, in which the North Rand innovative drug companies and drug companies radionuclide atomic Tech concern
.
Northland is a select-tier enterprise.
In the first half of the year, it invested 19600 million in research and development, accounting for 86.
03% of total revenue, ranking first in the NEEQ market, an increase of 80.
67% over the same period last year
.
There are 6 gene therapy drugs under research and 6 recombinant protein drugs, involving 14 indications.
Among them, the fastest-growing gene therapy drug NL003 has entered the phase III clinical trial stage
.
In 2022, the company will enter the R&D harvest period and is expected to usher in a performance explosion
.
In addition to its strong R&D strength, the company has simultaneously promoted the construction of a drug production base.
The planned construction area of ​​the second-phase bioengineering drug industrialization base is 43970 square meters.
It is planned to be completed in 2023 to meet the production of self-developed biological drugs .
It can also undertake CMO/CDMO.
After the completion of the service, it will become China's first production base of naked plasmid gene therapy drugs for human use
.
Innovative enterprise Atomic High-Tech's mid-year report scale net profit of 126 million yuan in 2021, far surpassing other similar enterprises
.
The company's core business is radiopharmaceutical products and services.
Backed by China National Nuclear Corporation, it is a leader in the radiopharmaceutical industry and ranks first in the domestic radiopharmaceutical industry
.
The company's core competitiveness is product scarcity and high gross profit margin, high technical barriers in the industry, and sustainable industry status and performance growth
.

　　2.
2.
3 Life Science
In 2020, Titan Technology and Aladdin have successfully transferred to the board, becoming well-known companies in the science and technology board of science services, and have made a good start for other NEEQ life science service companies
.
There are currently 23 NEEQ life science tools and service companies.
Among them, Benro Pharmaceuticals , Zhongke Biology, and Xinzhi Biology have net profits of more than 10 million yuan at the parent company during the 2021 interim report period
.
Following the CXO industry, the next scientific service field may appear in the field of life sciences.
Related sub-fields include catalysts, scientific instruments, intermediates, and molecular building blocks, which have broad development space
.

　　Conclusion
The establishment of the Beijing Stock Exchange will help serve early-stage emerging companies, provide a financing platform for start-up companies, and promote the healthy development of pharmaceutical and health companies
.
In the future, the capital channels for the development of China's pharmaceutical industry will become smoother, which will catalyze the implementation of more innovative pharmaceutical projects and promote the sustainable development of China's innovative pharmaceutical industry
.