echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Drugs Articles > Medicine into the big era how to pulse medicine stocks three major market

    Medicine into the big era how to pulse medicine stocks three major market

    • Last Update: 2021-02-08
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Guizhou Maotai broke 600 yuan, the stock price continued to rise;More than
    brokerages in the recent release of the pharmaceutical industry report said that the leading Hengrui Medicine and Yunnan White Medicine are at an all-time high, the consumption of medicine upgrade market is in full swing;
    reporters found that since October, the pharmaceutical sector began to have the momentum of rebooting youth, and the last good times remained until 2016. After nearly two years, the rise of the pharmaceutical market, is the bull prelude or a short bloom?
    "Daily Economic News" reporter (hereinafter referred to as NBD) in this regard interview with the A-share "Pharma One Brother" called the chairman of De Chuan Investment Jiang Guangze.half-yearly report better than expected to drive the sector out of the doldity
    investors who have studied the pharmaceutical industry for many years should be no stranger to the private equity tycoon. Cobaan was born in Zhongshan University, organic natural medicine Ph.D., Guangdong South China University of Technology biopharmaceutical postdoctoral. The biopharmaceutical doctor, who has long been well-known in the pharmaceutical industry, has focused on the pharmaceutical sector, from corporate to brokerage to private placement. As a brother of the A-share pharmaceutical investment circle, Jiang Guangze's stock-picking strength should not be underestimated. In early 2013, he founded deutsche funds, and in his first year he generated more than 50% returns for investors, beating the same period of public and private equity funds. So far this year, the core products it manages have also earned more than 30 per cent.
    , let's hear what his latest insights have about the long-suffering pharmaceutical sector.
    NBD: Since this year, the Csi 300 and other indices, especially in the first nine months of this year, the entire sector continued to be depressed, until October there is a clear rise in the market, what do you think is the main reason? What contributed to this rally in pharmaceutical stocks?
    Jiang Guangze: The downturn in the pharmaceutical sector was in fact a slump after the plunge in early 2016, in contrast to the liquor sector, which started in February 2016 in Maotai, Guizhou, and the vast majority of stocks in the pharmaceutical sector began to make a long journey. During this period, the biggest reason comes from the change of the industry itself - liquor, a highly homogenized industry, has completed the increase in industry concentration, a large number of miscellaneous liquor out of the market. Once upon a time, there were wineries in almost every county, but this phenomenon is a fact of the past. Therefore, high-quality liquor enterprises have gained a growing market share, performance continued to exceed expectations.
    but in the pharmaceutical industry, the cause of this decline is still influenced by industry policy. Fujian "Sanming medical reform" to implement the price of drugs brought great pressure, the market is expected to enter the "performance of the winter." At the same time, 13 major pharmaceutical industry policies were launched in 2016, raising the bar for the entire industry and accelerating the elimination of small and medium-sized enterprises that do not have the strength. In the case of consistency evaluation, only the first few enterprises that passed the generic consistency evaluation were allowed to produce in the future, and subsequently were no longer licensed for production. This policy to change a drug has hundreds of enterprises to produce the situation, the industry's elimination efforts can be imagined. And to do this consistent evaluation of the capital investment, has been as high as 35 million yuan per product, no doubt will bring performance pressure to pharmaceutical companies. In addition, there are graded diagnosis and treatment, drug zero-plus, supplies sunshine procurement, hospital control drug proportion, drug production enterprises flight inspection, environmental verification, two-vote system, such as the full implementation, are affecting the performance growth of enterprises real pressure.
    , the pharmaceutical sector had struggled to rise in anticipation of these pressures and did not begin to improve until the third quarter of this year. The reason for the change is that when the 2017 half-yearly report comes out, it's not as bad as you think.
    According to the completion of the main economic indicators of the pharmaceutical industry announced by the Ministry of Industry and Information Technology in the first half of 2017, enterprises above the pharmaceutical industry scale achieved main operating income of 1.53 trillion yuan and realized a total profit of 168.7 billion yuan, up 12.39 percent and 15.83 percent year-on-year, respectively. By the third quarter of this year, the valuation switch at the end of the year and the market rebounded to 3400 points, driving the pharmaceutical sector out of the doldity. According to the third-quarter reports of the pharmaceutical sector, 271 pharmaceutical listed companies achieved operating income of RMB849.71 billion in the first three quarters of 2017, up 19.31% YoY, and net profit of RMB79.74 billion, up 22.92% YoY. Profit recovery momentum continued, which can support the pharmaceutical sector continued to strengthen the market.three types of pharmaceutical stocks market
    NBD: will this wave of pharmaceutical stocks continue? What do you think of the next performance of the pharmaceutical stock market? If the market for pharmaceutical stocks is turned on, what are the main opportunities that may exist in the fine molecular industry?
    Guangze: We think the pharmaceutical stock market will continue. But one thing to point out is that this year's pharmaceutical market is actually very similar to the market's differentiation. Of the more than 300 pharmaceutical and medical stocks we tracked, 15 are now above their pre-2015 market highs, 35 are below their post-2015 lows, or 81 are at new lows but below their post-2016 lows. Such a split in the pharmaceutical sector is unprecedented and pose a huge challenge to investment in pharmaceutical stocks.
    this year's performance of pharmaceutical stocks, the overall market is three categories. The first is the steady growth of the white horse stocks, represented by Hengrui Pharmaceuticals and East China Pharmaceuticals, the second is to catch up with the product cycle of raw materials stocks, such as Brother Technology and Yong'an Pharmaceuticals, and the third is innovative themes, driven by the expectations of its heavy-weight products, such as Watson Bio and Tsusan Pharmaceuticals, which are expected to be blinded by its 13-price pneumonia vaccine, and the latter, which is approved by the cancer-resistant amine.
    the next market, is still around these three types of development. And the rest of the performance growth is not outstanding, or there is no market outlook for the expected theme of pharmaceutical stocks, I am afraid it will be a long time.
    NBD: Although this year, the pharmaceutical industry does not have a holistic market, but there are also a lot of stocks performing well, such as Yunnan white medicine, Hengrui medicine, tabletsand so on, what do you think is the logic? Will these stocks continue to perform, how to judge the rise of such stocks space?
    : The core logic of the pharmaceutical unit is to look at the product, determined by the product line. These white horse stocks should be said to be able to go on, as long as there are new products to invest in, performance can be sustained, at present also can not see the ceiling. If compared with internationally renowned pharmaceutical companies, the volume is still very small.
    , of course, these companies are different. Some companies' new product development is not too strong, but the performance is still very good, mainly because the core products are good enough to rely heavily on the core product price increases; (Daily Economic News Network)
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.