Policy release and implementation enter the intensive period, raw material pharmaceutical enterprises earn more

[market analysis of chinapharma.com] some insiders said that the new version of the medical insurance catalog was released, the medical reform was further promoted, the policy release and implementation entered a dense period, and the whole medical sector was significantly divided Among them, thanks to the implementation of supply side reform such as environmental protection inspection, some leading enterprises of API and chemical medicine achieved substantial growth ▍ according to the Statistics Bureau of reform and promotion, the business income of pharmaceutical manufacturers from January to may 2017 was RMB 116.71 billion, an increase of 11.9% year on year, and the total profit was RMB 125.52 billion, an increase of 15.7% year on year The growth rate of income and total profit was 1.91 and 0.73 percentage points higher than that of the same period in 2016, respectively The stable recovery of fundamentals reflects the stable growth of the pharmaceutical industry in the economic downturn In terms of the lower limit of net profit growth, 54 companies achieved a year-on-year growth of net profit, 16 companies achieved a year-on-year growth of more than 50%, and 10 companies are expected to double their performance From the perspective of the companies with the highest growth rate, some leading enterprises of API and chemical medicine have benefited from the decrease of supply under the strict environmental protection, and the production and sales of their main products are booming, showing a year-on-year surge in performance Northeast Pharmaceutical is currently at the top of the growth list The company expects to achieve a net profit of 38-41 million yuan in the first half of the year, with a year-on-year growth of 1106% - 1201% The company said that compared with the same period last year, the price of vitamin C, the company's leading product, increased, while the long-term single sales volume decreased compared with the first quarter Garden biology, which belongs to the same vitamin camp as northeast pharmaceutical, is also expected to see a surge in performance in the first half of the year The company expects to achieve a profit of 73-77 million yuan in the first half of the year, a year-on-year increase of 364% - 389% The company said that the substantial year-on-year growth in performance was mainly due to the substantial increase in the original sales volume of cholesterol and 25 hydroxyvitamin D3, the company's raised investment project products, which increased its profits It is worth noting that investment institutions have long been optimistic about the company's performance and performance in 2017, and many securities investment funds and niusan have been dormant since the end of 2016 Guangyuyuan, one of the leaders of subdivided traditional Chinese medicine, performed well The company expects to achieve a net profit of about 72 million yuan in the first half of the year, an increase of about 235% year-on-year The sales revenue of traditional Chinese medicine, the core business of guangyuyuan, a core holding subsidiary of Shanxi Province, has achieved a rapid growth, an increase of about 70% year-on-year At the same time, the company further strengthened the cost control to further improve the profitability; in addition, Shanxi Guangyu far passed the identification of high-tech enterprises on December 1, 2016, and reduced the corporate income tax at the rate of 15%, making the net profit of Shanxi Guangyu far attributable to the parent company increased by about 80% compared with the same period of last year; In addition, compared with the same period of last year, the proportion of the company's equity holding in guangyuyuan, Shanxi Province, increased from 55% to 96.03%, which led to a substantial increase in the company's net profit attributable to shareholders of Listed Companies in the half year of 2017 ▍ it is pointed out that although the total profit of the pharmaceutical industry has increased steadily, it is hard to be optimistic about the development of the pharmaceutical industry against the background of "two vote system" plus code, national drug supervision and medical reform Longshenrongfa, Yiming pharmaceutical, Beida pharmaceutical and other companies all said that since the company's products were listed in the medical insurance catalog, national medical insurance negotiation prices have been successively implemented in various regions, and the price of products has been greatly reduced, and the sales revenue has declined year on year Galaxy Securities Research Report believes that leading companies and innovative pharmaceutical companies deserve attention At present, the valuation level of Baima shares in the domestic pharmaceutical industry is close to that of the international pharmaceutical giants, while the overall growth rate of the domestic market is higher than that of the international market Domestic leading companies have good growth and definite long-term development Secondly, innovative drug investment is the top priority of pharmaceutical investment Globally, investment opportunities in the pharmaceutical industry are closely focused on innovation, and it is recommended to focus on A-share related listed companies.