Strong rise in medical devices, over 11% in the week

In the past August, the CSI 300 index rose 3.51%, while the pharmaceutical sector index rose 0.42%, 3.09 percentage points lower than the market, ranking the last in 23 shenfan industries "The pharmaceutical sector was in the adjustment phase in the third quarter, mainly due to valuation issues." Chen Haojian, senior investment adviser of Orient Securities, told Nandu reporters that since this year, alcohol has fallen sharply, and pharmaceutical stocks have also seen a sideways trading and adjustment since the second half of the year After a full year of gains since mid-2012, many pharmaceutical stocks have more than doubled Even according to the recent performance of the mid-term report, although the overall valuation of the sector is 28 times, many stocks are at a relatively high level of 40 times, so it is necessary to consolidate the cross market, or adjust it slightly In particular, the investigation of pharmaceutical bribery will bring certain revenue uncertainty to the whole pharmaceutical industry in the short term "At present, the pharmaceutical industry is in a period of policy intensive disturbance." Qiu Qianqian, an analyst at Qilu Securities, said in the research report that in the fourth quarter of this year, non-basic drug bids and basic drug bids of all provinces will be launched in succession, and the announcement and implementation of bidding rules of all provinces will cause disturbance to the pharmaceutical industry "In the second half of the year, the focus will be on medical insurance fee control and medical bidding." Wei Shixi, an analyst at the research department of pioneer securities, told Nandu that the cost control of medical insurance is a long-term trend After hitting the original drug research of foreign enterprises, domestic high-end generic drugs and exclusive products are expected to expand market share The general direction of bidding for basic drugs will still restrain the drug price, but if the use proportion of secondary and tertiary hospitals is specified, it will be a great advantage for the exclusive and category exclusive varieties of basic drugs It is worth mentioning that the meeting of the State Council recently deployed to promote the development of health service industry According to the data of many securities companies' research papers, at present, China's health service industry only accounts for about 5% - 6% of GDP, while the United States has reached 17.6% in 2009 "This policy shows the important position of big health industry in national strategy." Liu Yaming, senior analyst of pharmaceutical industry of Founder Securities [0.00% capital research report], pointed out that health service industry, including many fields such as medical care, rehabilitation and health care, is an important content and weak link of modern service industry The development of health service industry in China has great potential At present, institutions have a special interest in the pharmaceutical industry Recently, the financial report disclosed by the fund shows that among the heavy stocks held by the fund, pharmaceutical stocks have replaced liquor, finance and other sectors and become a hot choice for capital investment According to the statistics of galaxy securities, as of the end of the second quarter of this year, the total market value of pharmaceutical bio stocks held by the fund has exceeded 85 billion yuan This record data also shows that since the second quarter of 2008, the fund has been over matched with pharmaceutical stocks for the 20th consecutive quarter, which also makes the market value of pharmaceutical stocks constantly reach a new high In addition, of the 119 shares increased by social security fund in the second quarter, the number of shares in pharmaceutical and biological industries reached 16, accounting for 13.45%, which is the industry with the largest number of shares increased by social security fund in the second quarter Zhang Guangwen, an analyst with Guangzhou Hengsheng, told Nandu that the aging population is accelerating and the demand for medical services is rising The pharmaceutical industry can go through the economic cycle and has a clear growth space According to the experience of economic transformation in the United States, in the past 20 years, the average growth rate of the pharmaceutical industry has been between 12% and 14% According to 2013 Zhongbao, listed companies in the pharmaceutical industry achieved revenue of 273.326 billion yuan, up 17.83% year on year, and net profit of 21.042 billion yuan, up 17.60% year on year From the perspective of income growth, the income growth of the pharmaceutical industry in 2013 is equivalent to that of the same period last year; however, from the perspective of profit growth, it was - 1.14% in the same period last year, indicating that the efficiency of the pharmaceutical industry has recovered significantly In the secondary market with strong growth momentum of the sub industry of medical devices, from the performance of various micro molecular plates since September, the trend of the medical device plate is strong, up 11.47%; the growth of the medical commerce and chemical pharmacy is about 3%, followed by the growth of the traditional Chinese Medicine plate is also 2% In terms of stocks, last week, David medical [1.49% capital research] performed well in the pharmaceutical sector, staged a strong independent market, with a weekly increase of 29.53% Guanhao biological [3.04% funding research report] rose 19.3% in a week, Lepu medical [6.07% funding research report] 16.6%, Tongce medical [- 0.91% funding research report] 13.1% High tech barriers and market segments have a promising growth prospect, which is one of the main opportunities for Chinese medical device enterprises to achieve high-speed growth in the future Dongfang securities Chen Haojian said that in the medical sub industry, we are more optimistic about medical devices, mainly the proportion between medicine and medicine, and the proportion of medical services is increasing In the past, high-end medical devices were controlled by international brands, and a wave of import substitution is underway in China In addition, the barriers of many sub industries of medical treatment are very high, and the degree of alternative competition between them is not very fierce This ensures a high return on assets The demand for medicine is continuous and cyclical At present, the overall pharmaceutical stock is less than 10% away from this year's peak adjustment, about 7% - 8%, and the adjustment time is only about 2 months Referring to the last adjustment and amendment in 2011, it may be appropriate to intervene when the intention of the new medical reform policy is clear at the end of the year and the adjustment of the whole sector is more than 20% Many securities companies upgraded the rating of Lepu medical, Xinhua medical [2.17% capital research report] and other medical strong stocks Qiang Jing, an analyst with CICC, commented in the research report that Lepu medical currently has the most complete cardiovascular disease interventional treatment product line in China, and the acquisition of new Shuaike into the field of cardiovascular drugs is expected to have synergistic effect with the original business The short-term price of cardiac stent is stable, and the future performance is expected to pick up quarter by quarter There is much room for improvement in the basic mask At present, the stock price has a strong margin of safety Xiang Jun, an analyst at Xingye securities [0.52% capital research report], believes that the company's product line is very rich, all businesses have broad growth space, and the management level is in place with strong motivation and the company's upward trend continues Under the background that prescription drugs are suppressed by negative policies such as drug bidding, administrative price reduction, medical insurance fee control and anti-commercial bribery, the medical device industry is less affected by policies and is a good haven Moreover, the company's high growth in the next 2-3 years is determined, and the extended M & A may continue to exceed expectations, which is the preferred configuration target in the medical device industry.