Industry: 2022 will be a key year for the performance and logic of the traditional Chinese medicine sector

Since the second half of 2021, "Several Policies and Measures on Accelerating the Development of Traditional Chinese Medicine Characteristics", "Opinions on Further Strengthening the Work of Traditional Chinese Medicine in General Hospitals to Promote the Coordinated Development of Traditional Chinese and Western Medicine", "Guiding Opinions on Medical Insurance Supporting the Inheritance, Innovation and Development of Traditional Chinese Medicine" The continuous support of a series of support policies for traditional Chinese medicine has brought new opportunities for the development of the traditional Chinese medicine industry, and also brought significant benefits to the traditional Chinese medicine sector
.
Relevant data shows that the overall pharmaceutical and biological industry index will decline in 2021, but the traditional Chinese medicine index will still maintain a growth rate of 31.
71%
.
In the early trading of the first trading day in 2022, the traditional Chinese medicine sector opened higher and moved higher
.
As of the close of the day, there have been more than 20 individual stocks with daily limit
.
Judging from the 2021 performance forecast released by A-share pharmaceutical and biological listed companies, the traditional Chinese medicine sector has a beautiful 2021 annual report performance forecast with the help of policies
.
Flush iFinD data shows that as of the close on January 17, a total of 8 listed companies in the traditional Chinese medicine sector have released 2021 annual performance forecasts, of which 6 are pre-happy companies
.
A number of pharmaceutical companies performed outstandingly
.
For example, Conba expects its net profit in 2021 to increase by 325% to 375% year-on-year; Teyi Pharmaceutical expects its net profit in 2021 to increase by 173.
87% to 242.
34% year-on-year; Zuoli Pharmaceutical also expects a substantial increase in net profit in 2021
.
Regarding the view of the traditional Chinese medicine sector in 2022, Huaan Securities pointed out that the release of the performance of enterprises in the traditional Chinese medicine sector is only a matter of time.
The policy drive in the second half of 2021 may only be the first step and not completely finished.
2022 is the real performance and logic.
A pivotal year to cash in
.
He said that the current is the early stage of the development of the Chinese medicine industry, and he is optimistic about the opportunities of Chinese medicine in the next three to five years
.
At the time node in early 2022, it believes that there are two clear directions
.
On the one hand, the price increase is the result of upstream and downstream resonance, and the release of performance is only a matter of time
.
The continuous rise of raw materials has brought about an increase in cost + strong downstream demand, and the double superposition has brought about a price increase to further increase profits; on the other hand, the reform of state-owned enterprises has become the main theme, and equity incentives reflect corporate confidence
.
In 2021, 15 Chinese medicine listed companies have implemented or announced equity incentive plans, and the future compound growth rate required by the profit or income side in terms of unlocking conditions has basically increased compared with the compound growth rate of the past three years
.
The Xiangcai Securities Research Report also believes that policy support is a major catalyst for the development of the traditional Chinese medicine industry in 2022
.
On the demand side, factors such as the rigid demand characteristics of the pharmaceutical industry and the upgrading of pharmaceutical consumption have jointly supported the steady growth of demand in the traditional Chinese medicine industry
.
On the policy side, a series of favorable policies have been formed to promote the innovation of traditional Chinese medicine, the development of formula granules, the support of medical insurance and payment policies, and the continuous increase of no more than 25% of traditional Chinese medicine pieces, which will bring policy dividends and new demand to the traditional Chinese medicine industry
.
The unique advantage of "preventive treatment of diseases" brings development opportunities to the Chinese medicine industry
.
On the performance side, the traditional Chinese medicine industry has come out of a low point, showing a marginal improvement trend
.
On the valuation side, the traditional Chinese medicine industry still has a certain valuation advantage after valuation repair
.
"Policy + pharmaceutical consumption upgrade + performance improvement + valuation advantage" jointly builds investment opportunities in the traditional Chinese medicine industry.
It is recommended to focus on policy encouragement areas and policy safe haven areas
.
In general, although there are signs of a correction in the Chinese medicine sector recently, from the general point of view in the industry, in the context of the continued increase in favorable Chinese medicine policies, the market is still optimistic about the Chinese medicine sector in the medium and long term
.