Since October, the pharmaceutical sector has risen sharply, and the share price of these stocks has doubled

Since October this year, the pharmaceutical sector has rebounded sharply, and the Shenwan Pharmaceutical Biological Index rose by 19.
31%.

In addition, data show that as of the close of November 9, the pharmaceutical and biological sector rose 11.
84%.

In terms of individual stocks, the shares of Zhongsheng Pharmaceutical and Huasen Pharmaceutical doubled, and CanSino, Microelectrophysiology, Shuangcheng Pharmaceutical, and Yiling Pharmaceutical rose by more than 50%.

Among them, Zhongsheng Pharmaceutical rose by 144.
9%, Huasen Pharmaceutical by 110.
8%, CanSino by 96.
8%, Microelectrophysiology by 94.
83%, Shuangcheng Pharmaceutical by 72.
38%, InnoCare by 64.
54%, Hitron Pharmaceutical by 64.
14%, and Yiling Pharmaceutical by 61.
22%.

Analysts pointed out that the sharp rebound in the pharmaceutical sector has also allowed it to regain popularity
.
Data show that the trading volume of the pharmaceutical sector was 52.
4 billion yuan on October 10, and then gradually rose, reaching 141 billion yuan
on November 2.
The proportion of the pharmaceutical sector in all A-share trading volume in Shanghai and Shenzhen has also increased from 6% to nearly 14%.

In this regard, some research reports pointed out that optimistic about the fourth quarter of the pharmaceutical sector and the market in 2023, the industry low has passed, and the current is the resonance
of the four bottoms of the bottom of public fund positions, the bottom of valuation, the bottom of policy impact on the industry, and the bottom of policy expectations.
Looking ahead, the pharmaceutical industry is expected to be reborn
.
From the policy point of view, the current pharmaceutical policy is expected to improve, CICC pointed out that the recent policies including oral implant procurement, heart stent secondary negotiation, orthopedic centralized procurement and other policies are better than or in line with market expectations
.
In addition, some analysts pointed out that at the end of September, the medical device industry ushered in favorable policies
.
The National Health and Construction Commission issued a notice on carrying out financial discount loans to upgrade and transform medical equipment, and implemented phased incentive policies for new loans for the purchase and renovation of medical institutions' equipment, with the central financial discount of 2.
5 percentage points for a period of 2 years
.
Under the influence of this positive situation, the pharmaceutical sector ushered in a
rebound market.
From the performance point of view, the data shows that the data reported in the third quarter of 2022 has improved, and the total profit of the pharmaceutical and biological industry in the first three quarters of 2022 increased by 11.
59% year-on-year, reaching 196.
323 billion yuan
.
In terms of individual stocks, nearly 90% of companies had positive results in the first three quarters, and 36 companies' net profits more than doubled
year-on-year.
For example, Jiuan Medical's net profit in the first three quarters was 16.
05 billion, a year-on-year increase of 31,918.
64%; The net profit of Ruizhi Pharma in the first three quarters was 1.
023 billion yuan, a year-on-year increase of 6799.
35%; Anxu Biotech's net profit in the first three quarters was 3.
132 billion yuan, a year-on-year increase of 1003.
25%; Shanghai Yizhong's net profit was 104 million yuan, a year-on-year increase of 617.
63%.

Overall, the pharmaceutical sector maintained stable growth
in the first three quarters of 2022.
Some insiders said that with the marginal reduction of the impact of the epidemic in some regions, the orderly opening of hospitals, the orderly start of enterprises, and the orderly recovery of logistics in the third quarter, the operating performance of the pharmaceutical sector showed a gradual recovery trend; At the same time, consumer medical and other demand has also rebounded
to a certain extent.
It is expected that the trend may remain stable in the fourth quarter
.
The person said that low valuations, improved policy expectations and stable earnings are all reasons why
the pharmaceutical sector is attracting funds at the current point.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.