Pharmaceutical stocks evaporate 1.2 trillion yuan in one year, Jingdong Health, Hengrui lead the decline

From January 1, 2021 to January 1, 2022, the total market value of A-share and H-share medical and healthcare listed companies fell by about 1.
23 trillion yuan (Hong Kong stocks are calculated at 1 Hong Kong dollar equal to 0.
82 yuan)
.
Choice data shows that as of January 1, 2022, there were 423 listed companies in the biopharmaceutical sector with a total market value of 7.
53 trillion yuan, compared with 7.
27 trillion yuan in the same period last year, a drop of 260 billion yuan in one year
.
H-shares are even worse.
There are 184 listed companies in the two sectors of healthcare equipment and services, as well as pharmaceuticals, biotechnology and life sciences, with a total market value of HK$3.
26 trillion, down by HK$1.
15 trillion from HK$4.
41 trillion in the same period last year.
About RMB 940 billion
.
Specific to the sub-sectors, the A-share chemical medicine sector and the biological product sector contributed a total of more than 400 billion yuan in market value "gap"
.
The "HYMA" combination is a bit "miserable"
.
Investors in the secondary market have individual names for Hengrui, Mindray, Aier Ophthalmology, and WuXi AppTec, the four leading companies in their respective fields, called "HYMA" (Hippocampus Portfolio)
.
Their performance in the market often has the meaning of a weather vane
.
In 2021, the market value of these four companies, except for WuXi AppTec, which increased by 20.
4 billion yuan, the rest of the performance is not good
.
The market value of Hengrui decreased by 269.
9 billion yuan, Aier Ophthalmology decreased by 80 billion yuan, and Mindray decreased by 54.
9 billion yuan
.
On the other hand, the traditional Chinese medicine sector stands out among them.
The total market value has increased by 301.
5 billion yuan in one year, and the single Pien Tze Huang family has increased by 102.
3 billion yuan
.
The H-share healthcare equipment and services sector fell by a total of HK$913.
7 billion, with JD.
com and AliHealth accounting for almost half, and the two companies collectively fell by more than HK$500 billion
.
The market value that JD Health has fallen even exceeds the entire sector of pharmaceuticals, biotechnology and life sciences, which has fallen by HK$232.
5 billion
.
01.
Who is rising? In the valuation adjustment cycle, some companies have achieved remarkable market value by virtue of the fields that stand on the wind
.
For example, Watson Bio, which is under the dual blessing of mRNA + vaccine, has a market value of nearly 30 billion yuan a year
.
For example, Asymchem, although its stock price has been falling and falling since 2022, its market value is still more than 20 billion yuan higher than that at the beginning of 2021
.
The same is true for Proton shares on the same track.
The market value has increased from 19.
8 billion yuan on January 1, 2021 to 48.
6 billion yuan, an increase of 145%
.
In addition, there are traditional Chinese medicine
.
At the end of 2021, the traditional Chinese medicine industry almost ushered in a "highlight" moment
.
The traditional Chinese medicine sector has continued to rise since December 2021, reaching a peak at the end of the year
.
Flush Chinese medicine sector rose from 3016 on December 17 to 3679 on December 31, an increase of 22%
.
Affected by this factor, traditional Chinese medicine stocks have become the sector with the largest increase in total market value among A-share listed pharmaceutical companies
.
On January 1, 2021, the total market value of A-share listed traditional Chinese medicine companies was 878 billion yuan, and a year later, the number increased to 1,179.
5 billion yuan, an increase of 34%
.
This "wild" rise is widely regarded as a valuation repair under favorable policies
.
Prior to this, in the big ecology of the rise of innovative drugs, the rise of CXO, and the prominence of vaccines, in addition to the use of epidemic prevention themes, some Chinese medicine companies with anti-virus and anti-flu, such as Yiling Pharmaceutical, had a wave of stock price rises.
, and most of the rest are like "female classmates without a story", and are rarely concerned by the secondary market
.
At the end of 2021, the State Administration of Traditional Chinese Medicine and the National Medical Insurance Bureau jointly issued the "Guiding Opinions on Medical Insurance Supporting the Inheritance and Innovation of Traditional Chinese Medicine", and new Chinese medicines approved for marketing in 2021 hit a new high
.
Two policy signals make the industry and secondary market investors begin to re-examine the trend of traditional Chinese medicine in 2022
.
According to the statistics of E-pharmaceutical managers, of the 69 A-share (excluding the suspended Longshen Rongfa) traditional Chinese medicine listed companies, 60 will achieve market value growth in 2021, with Pien Tze Huang, *ST Kangmei, Tong Ren Tang and Guang Yuyuan the most growing
.
There are 9 companies whose market value has fallen, of which Yunnan Baiyao has decreased by 10.
9 billion yuan
.
As the only two listed Chinese medicine companies in the market with a market value of over 100 billion yuan, Pien Tze Huang and Yunnan Baiyao are always compared and analyzed.
The consumption attributes of Pien Tze Huang and Yunnan Baiyao are both national secret formulas
.
The reason for the difference in this year's trend is that most of the industry believes that the profit space of Pien Tze Huang after the price adjustment has increased
.
Statistics show that in the past 15 years, Pien Tze Huang has raised the price 19 times, and the ex-factory price has risen from 125 yuan/grain (3g) to the current close to 600 yuan/grain (3g), an increase of nearly 5 times
.
In mid-2021, the price of Pien Tze Huang was once fired to 1,000 yuan per capsule
.
The capital market is affected by news, and industrial development must pay attention to fundamentals
.
The key to the development of traditional Chinese medicine enterprises in 2022 is how to improve their own capabilities under the favorable policies
.
In this regard, the traditional Chinese medicine industry needs supplementary courses, from the selection of development paths, personnel training, product strength building, industry upstream and downstream chain management, and even public awareness of traditional Chinese medicine products
.
02.
Who is falling? Changchun High-tech, Kangtai Bio, and Zhifei Bio are among the top three in the A-share biological products sector in terms of market value, and CanSino is the one with the largest market value decline among the "-U" companies on the Science and Technology Innovation Board
.
Changchun Hi-Tech's market value at the beginning of 2021 was 181.
7 billion yuan.
By January 1, 2022, its market value will drop to 109.
8 billion yuan, a decrease of 71.
8 billion yuan.

.
Kangtai Bio has dropped 51.
8 billion yuan a year, from 119.
5 billion yuan in the 100 billion club members to 67.
7 billion yuan, a decrease of 43%.
At the beginning of 2021, Zhifei Bio has a market value of 236.
7 billion yuan.
By April 2021, its market value will be 236.
7 billion yuan.
It once reached 360 billion yuan, but by January 1, 2022, the market value of Zhifei Bio was only 199.
3 billion yuan, and it fell by more than 160 billion yuan in 8 months.
It is the vaccine stock with the largest market value difference in one year
.
Although the overall market value has fallen in one year, the "highlight moment" of Zhifei Bio and CanSino will also occur in 2021
.
In June, the share price of CanSino-U once exceeded 700 yuan per share, and the intraday high was even close to 800 yuan per share.
The share price of Hong Kong stock CanSino Bio-B also once exceeded 400 yuan per share
.
The situation of Zhifei Bio is similar.
In April and May, the stock price once exceeded 200 yuan/share, and the intraday high once exceeded 230 yuan/share
.
Behind the high stock price is the dazzling performance
.
The new crown vaccines of CanSino and Zhifei Biological were approved in February and March, and large-scale vaccination has also started in China
.
According to the third quarterly report of Zhifei Biology, the revenue in the first three quarters was 21.
83 billion yuan, a year-on-year increase of 97.
55%, and the non-net profit was 8.
418 billion yuan, a year-on-year increase of 239.
06%; CanSino’s revenue in the first three quarters was 3.
086 billion yuan, a year-on-year increase of 54287%
.
H-shares were led by three Internet medical companies, Jingdong Health, Ali Health and Ping An Good Doctor.
The three companies fell by HK$281.
3 billion, HK$219.
2 billion and HK$75.
3 billion respectively
.
JD Health went public in December 2020, with a market value of HK$340 billion on the first day of listing, and even HK$470 billion on January 1, 2021
.
But since February 2021, its share price has fallen all the way, from nearly HK$160/share to only HK$60/share today
.
According to the mid-year report, JD Health’s revenue in the first half of 2021 was 13.
6 billion yuan, a year-on-year increase of 55.
4%, of which the sales revenue of pharmaceutical and health products was 11.
8 billion yuan, a year-on-year increase of 52.
9%.

.
In the first half of the year, JD Health also narrowed its losses, from 5.
36 billion yuan in the same period of the previous year, narrowed by 91.
5% to 454 million yuan
.
Ali Health's 2021 semi-annual report revenue was 9.
36 billion yuan, and its performance increased by 30% year-on-year.
However, due to the increase in the allocation of innovative business resources, the performance turned from profit to loss, with a loss of 230 million yuan
.
Ali Health’s share price has also fallen since February, from HK$26/share to less than HK$7/share today
.
Ping An Good Doctor is quite different.
Although the revenue in the first half of 2021 was 3.
92 billion yuan, a year-on-year increase of 39.
0%, the loss was 880 million yuan, a year-on-year increase of 311%
.
The share price of Ping An Good Doctor has fallen even more, from nearly HK$140/share in February to HK$26/share today
.
The more similar points in the three financial reports are that the proportion of drug sales business exceeds 50%, of which Jingdong Health and Ali Health even exceed 80%
.
Some analysts say that the dive in the market value of Internet medical companies is due to the return of valuation
.
It is also necessary to find new growth points outside the pharmaceutical e-commerce business
.
In addition, the market value of companies with the label of License-in (patent authorization introduction) generally fell
.
The market value of Zai Lab and Genting Xinyao has almost halved.
Among them, Zai Lab has the largest decline, from HK$91.
017 billion to HK$48.
783 billion, while Genting Xinyao has dropped from HK$19.
851 billion to HK$10.
384 billion, a drop of 94.
67%.
billion Hong Kong dollars
.
However, in the previous year, Zai Lab and Genting Xinyao continued to improve their business
.
On June 16, 2021, Zai Lab and MacroGenics, an innovative antibody biopharmaceutical company, announced an exclusive collaboration and license agreement for four immuno-oncology molecules
.
On November 9 of the same year, Zai Lab and Blueprint Medicines jointly announced that the two parties have reached an exclusive cooperation and license agreement for the development and commercialization of BLU-945 and BLU-701 in Greater China
.
Genting Xinyao will continue to expand its R&D pipeline in mid-2021
.
In September 2021, Genting Xinyao entered into licensing agreements with Sino-Vehicle (and Zhongkang Pharmaceutical) and Providence Therapeutics respectively.
The former grants Everest HK, a subsidiary of Genting Xinyao, all the licensed technologies under the exclusive and sublicensable license to be used globally.
Develop, manufacture and commercialize XNW1011 and licensed products for the treatment of all kidney diseases or symptoms within the scope of the company; the latter is licensed and partnered by Providence's mRNA COVID-19 vaccine candidate in Greater China, Southeast Asia, Pakistan and other emerging Asian markets determination of relationship
.
In the CRO field, Pharmaron and Tiger, two leading companies listed on A+H shares, have slightly different market values
.
Pharmaron's A-share market value is on the rise, while H-shares have fallen by 8.
5 billion yuan
.
Tiger's A shares and H shares are both falling.
The value of the A shares has decreased by 34 billion yuan, and the H shares have halved from 156.
6 billion yuan to 86.
3 billion yuan
.