The recent hot Chinese medicine sector, what is the next response strategy?

[Pharmaceutical Network Market Analysis] Since mid-March, the traditional Chinese medicine sector has been rising against the trend, and the reason behind it is mainly related to the continuous catalysis of favorable policies
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In addition, the traditional Chinese medicine sector also has certain performance support
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Recently, many traditional Chinese medicine companies have issued announcements of pre-increase in the first quarter
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For example, Pien Tze Huang’s pre-earning announcement for the first quarter of 2022 released on March 30 shows that it is expected to achieve a net profit attributable to shareholders of the company of 678 million to 701 million yuan, a year-on-year increase of 20% to 24%.
The performance growth is mainly due to the Wuling series Due to the growth in the business of products, 100 Ling tablets, Chinese herbal decoction pieces and formula granules; Zuoli Pharmaceutical announced its results for the first quarter of 2022 on March 9, and is expected to achieve a net profit of 67 million yuan to 71 million yuan, an increase over the same period of the previous year.
52.
98% - 62.
12%, mainly because the operating income of main products has achieved rapid growth, and the "hematopoietic" function has been continuously strengthened
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So, for the traditional Chinese medicine sector, what is the next response strategy? CITIC Securities believes that the traditional Chinese medicine sector has been in a period of confusion and distress at the bottom for a long time, and it is expected to usher in a reversal of difficulties in 2022; in recent years, the state has vigorously supported the development of traditional Chinese medicine, and has continuously introduced relevant policies, and the approval criteria for innovative traditional Chinese medicine drugs are also With continuous standardization, incremental logic will be ushered in under the supply-side reform; under the background of the correction in the valuation of the overall pharmaceutical sector, the traditional Chinese medicine sector is expected to usher in valuation reshaping as a sector with a low valuation and a policy haven
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The agency believes that the traditional Chinese medicine market is sustainable in the medium and long term.
It can focus on structural opportunities in the short term, and focus on target companies that benefit from policy promotion, innovative research and development, and consumption upgrades in the medium and long term
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 　　Bai Rui Ying Securities Consulting stated that Chinese medicine in China is broad and profound, with a long history.
It is a treasure of ancient science in China, and has had a positive impact on the progress of the Chinese nation and even the world civilization
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With the promotion of the innovation of traditional Chinese medicine, the development of formula granules, the support of medical insurance and payment policies, and the continuous addition of TCM decoction pieces not exceeding 25%, a series of favorable policies have been formed, which will bring policy dividends to the traditional Chinese medicine industry, demand side, traditional Chinese medicine consumption upgrade and The contribution of traditional Chinese medicine in the face of various epidemics has brought new demands to the traditional Chinese medicine industry, and the traditional Chinese medicine industry is expected to maintain a high degree of prosperity in the future
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It is recommended to focus on innovative Chinese medicines, branded Chinese medicines, Chinese medicine services and Chinese medicine formula granules in the subdivisions of the Chinese medicine sector
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 　　Southwest Securities released a research report saying that in April, the traditional Chinese medicine sector will enter the stage of intensive disclosure of annual reports and first-quarter reports, and it is necessary to pay attention to the impact of epidemic interference on performance expectations
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In terms of configuration, it is recommended to add large-cap market leaders with stable performance
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The agency believes that in the normalization of medical insurance pressure and the post-epidemic era, the focus is on looking for "traversing medical insurance" and "epidemic desensitization" varieties
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Among them, medical insurance immunization is still a good choice.
For the downstream To C side, focus on varieties that do not account for medical insurance, such as traditional Chinese medicine consumer goods
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 　　From the perspective of themed funds that focus on the higher purity of traditional Chinese medicine, the positions of Qianhai Kaiyuan Traditional Chinese Medicine A/C and China Universal China Securities Traditional Chinese Medicine A/C are as follows.
As of the end of the fourth quarter of 2021, the two funds are mainly heavy-holding stocks.
All of them include Yunnan Baiyao, Pien Tze Huang, Tong Ren Tang, Bai Yun Shan, Dong E E Jiao, Yiling Pharmaceutical and other 6 stocks in the traditional Chinese medicine sector
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 　　In addition, some equity funds with heavy holdings of traditional Chinese medicines, such as Xingye Juhui, Xingye Juyuan, Jinyuan Shun'an Medical and Health, Xingye Juxing, Wanjia Double Engine, and Galaxy Recreation, are also worthy of attention
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 　　It is generally believed in the industry that there will be certain opportunities in the fundamentals of innovative Chinese medicine, Chinese medicine formula granules, upstream life sciences, and CXO
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In terms of funding, the track of innovative traditional Chinese medicine and traditional Chinese medicine formula granules will have certain advantages in terms of funding
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