Pharmaceutical stocks have led the gains in the past decade and have recently bucked the trend again

So far this year, the Shanghai index fell 4.48 per cent in the year to May 9, but the pharmaceutical sector bucked the trend. According to statistics, the China Securities Index rose 11.05 percent from January 1 to May 9, winning the first place among the 10 first-tier industry categories. The three pharmaceutical funds, including the Public Fund, which includes the Health Care Fund, all gained more than 20% in net worth during the year.
if the time is extended to a 10-year cycle, the China Securities Index of Medical and Health Index continues to lead the rise. Wind statistics show that between May 9, 2008 and May 9, 2018, the China Securities Index rose 194.34 percent, outsaning the second-place China Securities Index's 142.67 percent.
if we extend the period to 12 years, we will find the rise in the pharmaceutical index even more encouraging. Wind statistics show that between May 9, 2006 and May 9, 2018, the China Securities Index rose as much as 907.11 percent in 12 years, far outsopping the second-place China Securities Index's consumer index by 608.11 percent.
, many brokerage analysts said they were optimistic about the business climate of the pharmaceutical industry, but also optimistic about the performance of pharmaceutical stocks after the market. Haitong Securities chief strategy analyst Yan Yugen believes that the 2016-17 market style value, 2018 is a transitional year, compared to 2017 growth opportunities become more, the overall balance, after 2019 growth will be better, due to the improvement in corporate earnings from 2016 to 2019 from traditional industries to emerging industries. The growth industry is bullish on new consumer medicines (medical services, innovative drugs) and advanced manufacturing in hardware.
zhang Xia, an analyst at China Merchants Securities, also said that the pharmaceutical and biological industry has maintained a double-up in revenue and earnings since 2015, the business climate continues to rise, the industry itself has a high defensive nature and performance assurance, is the main line of investment worthy of attention.
Hanfeng, an analyst at Zhongjin Securities, also believes that in the context of trade friction, domestic demand needs to focus on domestic demand opportunities, expanding domestic demand-related medicine, home appliances, food and beverage, agriculture and other sectors deserve attention.
, a fund manager in the healthcare industry, is also a senior fund manager in the industry who focuses on pharmaceutical research. He said that in 2018 the pharmaceutical industry entered a new cycle of innovation-oriented and industrial upgrading into fine growth. Consistency evaluation, innovative drugs, preparation exports will be the main policy beneficiaries of the pharmaceutical industry in 2018, vaccines, chemicals, biologics will be the whole of 2018 can focus on the high-boom sub-sectors, especially vaccines.
Jiang Xiulei judged that the pharmaceutical industry after the adjustment of the past 3 years, the current overall valuation is relatively low, coupled with the 2017 policy support transmission of the good gradually highlighted and the rebound in sector performance, the next year the industry's business climate is on the rise.
Jiang Xiulei said that the future stock selection will follow the "white horse as the core, grow into an attack, focus on valuation" thinking, in the focus of the layout of consistent evaluation, innovative drugs, preparation exports, vaccines, pharmacies, medical services on the basis of the layout of pharmaceutical business, domestic equipment, medical insurance volume to benefit from the fine molecular industry. (China Securities News)