Chinese medicine has become a "sweet pastry"!

According to industry statistics, the traditional Chinese medicine sector has risen by 28.
76% from the close of December 10, 2021 to January 11, 2022
.
Among them, many stocks such as Jiuzhitang and Tongrentang have consecutive daily limit
.
On January 4 this year, at least 23 traditional Chinese medicine stocks, including Watson Pharmaceuticals, Taiji Group, Tongrentang, Xinguang Pharmaceutical, Zuoli Pharmaceutical, and Xiangxue Pharmaceutical, rose to the daily limit
.
Chinese medicine has once again attracted the attention of the industry
.
Watson Pharmaceuticals announced on the evening of January 12 that the company’s closing price increase exceeded 20% in three consecutive trading days on January 10, 11, and 12, 2022, and its performance was very dazzling
.
Behind the fact that traditional Chinese medicine has become a "sweet pastry", securities companies generally believe that the policy support for the traditional Chinese medicine industry is a major reason for the recent general rise in the traditional Chinese medicine sector
.
On December 30, 2021, the National Medical Insurance Administration and other two departments issued guidance on medical insurance supporting the inheritance, innovation and development of traditional Chinese medicine, proposing that qualified traditional Chinese medicine (including traditional Chinese and western medicine, ethnic medicine) medical institutions, traditional Chinese medicine retail pharmacies, etc.
Included in the management of the medical insurance fixed-point agreement; according to the regulations, the qualified Chinese herbal medicine pieces, proprietary Chinese medicines, Chinese medicine preparations of medical institutions, etc.
are included in the medical insurance drug catalog; "Drug management mechanism to expand the channels for insured patients to use drugs to designated retail pharmacies
.
It can be seen that this is another major benefit ushered in by the traditional Chinese medicine industry, which means that there will be new opportunities for development and business operations are expected to improve
.
In addition, not long ago, 7 provinces (cities) including Shanghai were among the first batch of approved construction of national demonstration zones for comprehensive reform of traditional Chinese medicine, which is another major push for the development of the traditional Chinese medicine industry
.
In addition to policy factors, since the end of 2021, there have been constant news of price increases of traditional Chinese medicines, which has become the main reason for the recent price increases of traditional Chinese medicines
.
For example, in December 2021, Beijing Tongrentang issued a price adjustment notice, announcing that the price of Angong Niuhuang Pills would increase by 10%
.
The reason is that affected by natural disasters and epidemics, the prices of Chinese medicinal materials have risen to varying degrees, resulting in an increase in the production cost of Chinese patent medicines
.
Not long ago, China Resources Sanjiu replied to investors on the investment interactive platform that the company's ex-factory price of Angong Niuhuang Pills will increase due to the continuous increase in overall costs in recent years
.
On December 14, 23 and 27, 2021, Jiuzhitang said in an institutional survey that "the raw materials of traditional Chinese medicine are affected by climate, planting area and other factors, and there is a general price increase", and the company also stated that it will "comprehensively consider cost changes.
According to the situation, policy situation, product audience and market environment, etc.
, different pricing strategies will be adopted in a timely manner
.
Different ex-factory price adjustment strategies will be formulated for specific products
.
" Then on January 1, 2022, Jiuzhitang officially issued a price adjustment notice, announcing the increase.
The prices of 21 kinds of proprietary Chinese medicines, including Angong Niuhuang Pills, Liuwei Dihuang Pills, Xiaoyao Pills, etc.
, are adjusted by 6%-30%
.
It is understood that in addition to Angong Niuhuang Pills, the prices of white peony root, Poria, and mint in the raw materials of Xiaoyao Pills will all rise sharply in 2021; the prices of Danpi, Chinese yam, Shudi, Poria, etc.
in the main raw materials of Liuwei Dihuang Pills have also increased significantly.
increase in magnitude
.
The analysis believes that after these large Chinese medicine companies have raised prices one after another, the Chinese medicine sector has become a "window", and Chinese medicine companies with lower valuations and strong brand influence have also received further attention, driving the entire Chinese medicine sector to rise against the trend
.