The development of traditional Chinese medicine welcomes the policy "bonus period", and the industry recommends paying attention to these two main investment lines

[Pharmaceutical Network Market Analysis] At present, pharmaceutical companies have begun to enter the concentrated period of disclosing their performance forecasts for the first half of 202It is understood that as of July 17, 112 biopharmaceutical companies in the A-share market have disclosed their performance forecasts for the first half of 202Among them, there are 41 companies whose performance in the first half of the year is expected to increase significantly year-on-year, including many traditional Chinese medicine compani.
 Traditional Chinese medicine welcomes the "bonus period" of the policy, and the industry recommends paying attention to two main lines (Source: Pharmaceutical Network) For example, on July 14, Dong'e Ejiao issued an announcement on the pre-increase in the first half of 2022, and the net profit is expected to be 270 million yuan to 40 yuan 100 million yuan, and the net profit increased by 800%~1200% year-on-ye.
On July 12, Longshen Rongfa released its semi-annual performance foreca.
It is expected that the net profit attributable to shareholders of listed companies in the first half of 2022 will be 8 million to 2 million yuan, a year-on-year increase of 5129% to 584
On July 9, Taiji Group released a performance foreca.
It is expected that the net profit attributable to shareholders of listed companies from January to June 2022 will be 120 million yuan, a year-on-year change of 500%; Yuan, an increase of about 10
Incomplete statistics show that 18 listed traditional Chinese medicine companies have released performance forecasts, of which 9 companies have achieved positive year-on-year growth in net profit, and 8 companies have a year-on-year growth rate of net profit of more than 5
In this regard, the industry believes that this is mainly due to the accelerated introduction of support policies for the Chinese medicine industry and the clear attitude of the state to support the development of the Chinese medicine sect.
It is worth noting that in March this year, the "14th Five-Year Plan for the Development of Traditional Chinese Medicine" was officially releas.
Among them, the review and approval of traditional Chinese medicines, medical insurance, and the continuous refinement of traditional Chinese medicine innovation and secondary development policies will promote the development of traditional Chinese medici.
The traditional Chinese medicine industry has accelerated its development towards standardization and high quality, and accelerated the further expansion of the scale of the traditional Chinese medicine mark.
In the short and medium term, industry analysts believe that under favorable policies, the traditional Chinese medicine sector will continue to receive market attention, and stocks with low valuations + excellent performance are expected to continue to ri.
It is recommended to pay attention to the targets with better performance in the interim repo.
In the long run, the industry believes that under the background of "policy + rigidity in pharmaceutical consumption + steady growth in performance + valuation advantages" to jointly build investment opportunities in the traditional Chinese medicine industry, there will be more investment opportunity windo.
Investors are advised to pay attention to Two main lin.
Main line 1: Inheritance and innovation line, pay attention to the innovation of traditional Chinese medicine, brand traditional Chinese medicine and traditional Chinese medicine formula granul.
The policy support for the traditional Chinese medicine industry covers the entire industrial chain of traditional Chinese medicine, involving upstream Chinese herbal medicine planting, traditional Chinese medicine service system, talent development, inheritance and innovation, medical insurance payment, review and approval,e.

Therefore, under the background of the policy dividend period for the traditional Chinese medicine industry, we can focus on the subdivisions of traditional Chinese medicine innovation, brand traditional Chinese medicine and traditional Chinese medicine formula granules, which have relatively large benefi.

Main line 2: Focus on partial consumption and OTC terminal expansi.

The centralized procurement of Chinese patent medicines was relatively moderate, and the exclusive varieties performed bett.

Under the background of centralized procurement, the expansion of OTC terminals can help traditional Chinese medicine companies to smooth the impact of price reductions brought about by centralized procurement at the hospit.

It is understood that many companies have recently expressed that they will expand their layout in OTC and other aspec.

For example, Jiuzhitang said when participating in the survey that the main business in the future will still focus on the production and operation of OTC proprietary Chinese medicines and Chinese medicine prescription dru.

The company expects that the OTC business will grow steadi.

The cooperation with Yifeng Pharmacy will also have a positive impact on the revenue and profit of the OTC business in the futu.
In addition, the company's development plan for 2022, which Jiangzhong Pharmaceutical responded to investors' questions, also stated that it would focus on the "14th Five-Year Plan" strategic plan, focus on OTC, develop big health, strengthen prescription drugs, and actively promote endogenous and epigenetic two-wheel dri.

development, and accelerate the implementation of the company's strategy and business layo.

Conclusion In general, China's traditional Chinese medicine industry has entered the fast lane of revitalization and developme.

Under the continuous introduction of relevant favorable policies in China, the industry will usher in a development dividend period, and the main investment lines such as modern Chinese medicine innovation, brand Chinese medicine, and consumption upgrades will also usher in more opportuniti.

Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyo.