How should the pharmaceutical sector be laid out in the fourth quarter? There are 4 main lines recommended in the industry

【Pharmaceutical Network Market Analysis】Compared with the optimistic expectations of a strong recovery in the pharmaceutical industry in the first half of the year, the market has reasonably revised down its performance expectations
for the second half of the year.

Guotai Junan newly released research report said that from the fourth quarter to 2023, the policy impact or first suppressed and then risen, recommended layout innovation and strong demand, mainly to see that there are 4 main lines worth paying attention to
.

First, pharmaceuticals
.

Starting in BeiGene, Biotech commercialization/R&D progress continues to advance
.

According to incomplete statistics in the industry, since 2018, 26 Biotech companies have achieved commercial listing
of products.

Among them, Biotech, which first entered the commercialization, is transforming towards the 2.
0 stage of refined management, and Biotech, which entered the commercialization later, is also exploring a diversified cooperation model, and the recommended targets include Kangfang Biological, Rongchang Biological, BeiGene, and Keji Pharmaceutical
.

In addition, the research report also recommends paying attention to the stock business/transformation progress of traditional pharmaceutical companies, and related targets such as Hengrui Pharmaceutical and Huadong Pharmaceutical
.

Second, medical devices
.

With the intensification of population aging and the improvement of residents' health awareness, the market size of China's medical device industry has shown an upward trend year by year, from 772.
1 billion yuan in 2020 to nearly one trillion yuan in 2021, an increase of 20.
22%
year-on-year.

Follow-up recommended under the guarantee of new infrastructure under the performance of the head enterprises such as Mindray Medical, the company in the first half of 2022 to achieve a total operating income of 15.
356 billion yuan, an increase of 20.
17% year-on-year; Attributable net profit was 5.
288 billion yuan, an increase of 21.
71
% year-on-year.

At the same time, the company's R & D investment of 1.
456 billion yuan, an increase of 25.
01% year-on-year, R & D investment accounted for 9.
48%
of operating income.

The industry believes that with the continuous landing of new global medical infrastructure and the breakthroughs that the company has in overseas markets, the company is expected to continue to maintain its dominant position
in the field of life information and support in the future.

In addition, it is recommended that the penetration rate of domestic medical devices continues to increase, and the domestic rate is double low, and the Aohua endoscopy is recommended; As well as Haitai Shin kong, which benefited from the recovery of overseas medical market demand, etc
.

Third, consumer medical care
.

As a necessary consumer service, medical care will show a steady growth trend
along with the increase in per capita disposable income.

Recommend Aier Ophthalmology, Aimike, Aibo Medical, etc.
, which have stronger performance under the impact of
the epidemic.

According to the report, the "Eye Mao" Aier Ophthalmology achieved operating income of 8.
107 billion yuan in the first half of the year, an increase of 10.
34% year-on-year; Attributable net profit was 1.
291 billion yuan, an increase of 15.
73
% year-on-year.

Domestic hyaluronic acid head enterprise Aimek achieved operating income of 885 million yuan in the first half of the year, an increase of 39.
70% year-on-year; Net profit attributable to shareholders of listed companies was RMB591 million, an increase of 38.
90%
year-on-year.

Aibo Medical, the head enterprise of ophthalmic medical devices, achieved operating income of 273 million yuan in the first half of the year, an increase of 32.
33% year-on-year; The net profit attributable to the shareholders of the listed company was 123 million yuan, an increase of 34.
68%
year-on-year.

Fourth, pharmacies
.

With the advancement of new retail in medicine, there are still growth points
in the pharmacy industry.

Recommendations include Dasanlin and Yixintang, which are becoming more flexible in the performance of the epidemic recovery; As well as Yifeng Pharmacy and the people
who benefit from the endogenous and epitaxic drive.

In the first half of the year, the operating income of Da ginseng forest was 9.
721 billion yuan, an increase of 20.
68% year-on-year, of which the retail pharmacy business income was 8.
781 billion yuan, an increase of 18.
78% year-on-year; Attributable net profit was 714 million, up 10.
62%
year-on-year.

Yixintang's revenue was 7.
965 billion yuan, an increase of 18.
85% year-on-year; Among them, the revenue of retail pharmacy business was 6.
318 billion yuan, an increase of 5.
11% year-on-year; Revenue was 7.
965 billion yuan, an increase of 18.
85%
year-on-year.

Yifeng Pharmacy achieved operating income of 8.
75 billion yuan, an increase of 19.
11% year-on-year, of which retail pharmacy business revenue was 7.
968 billion yuan, and net profit attributable to the mother was 576 million yuan, an increase of 14.
2%
year-on-year.

The people achieved operating income of 8.
991 billion yuan, an increase of 20.
51% year-on-year, of which the retail pharmacy business income was 7.
584 billion yuan, an increase of 19.
6% year-on-year; Attributable net profit was RMB457 million, up 12.
48% year-on-year; Net profit after deduction of non-attributable to the mother was 420 million, an increase of nearly 16%
year-on-year.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.