The Chinese medicine sector soared 26% in a month! The main line of development in the fourth quarter is optimistic

【Pharmaceutical Network Market Analysis】 Chinese medicine refers to the medicinal materials used to prevent and treat diseases guided by the theory of Chinese medicine, usually including natural medicinal materials, Chinese medicine pieces and Chinese medicine preparations
.
In recent years, the development of China's traditional Chinese medicine industry has ushered in a period of
obvious policy opportunities.
Soochow Securities believes that in recent years, from top-level design to specific measures, the state has issued a number of policies to encourage the development of traditional Chinese medicine, especially in the past two years, including medical insurance payment, optimization of review and approval rules, encouragement of traditional Chinese medicine innovation and talent development and other traditional Chinese medicine policies have been intensively introduced, which fully shows that China attaches importance to and supports
the inheritance and innovation of traditional Chinese medicine.
In addition, some analysts also said that looking forward to the fourth quarter, they are optimistic about the main line
of development of the Chinese medicine sector.
First, the third quarter performance is better, second, some new products have appeared, and third, the valuation is relatively cheap
.
In addition, some people also said that the Chinese medicine industry is standing in the policy window period and has considerable
development prospects.
Among them, from the performance point of view, as of October 30, 75 A-share Chinese medicine companies have all disclosed the third quarterly reports of 2022, with a total revenue of 256.
789 billion yuan and a total net profit of 24.
115 billion yuan
.
According to the analysis, 64 Chinese medicine companies achieved profitability
.
The total revenue of the six companies exceeded 10 billion yuan, specifically, the revenue scale of Baiyun Mountain reached 54.
806 billion yuan; in addition, Yunnan Baiyao and China Resources Sanjiu achieved total revenue of 26.
916 billion yuan and 12.
111 billion yuan
respectively.
The net profit of 8 companies exceeded 1 billion yuan, specifically, the net profit of Baiyun Mountain reached 3.
474 billion yuan; Yunnan Baiyao and Pian Tsaixi both had net profits of more than 2 billion yuan, 2.
305 billion yuan and 2.
052 billion yuan
respectively.
In addition, data show that since bottoming out on September 27, the Chinese medicine sector has risen by 26% in less than a month, significantly outperforming the CSI 300 by 28 percentage points in the same period, with obvious
excess returns.
On November 8, the traditional Chinese medicine sector also followed the trend, as of the close, the sector rose 1.
11%, of which Hansen Pharmaceutical, Zhongsheng Pharmaceutical, Xiangxue Pharmaceutical rose more than 7%.

In addition, China Resources Sanjiu, Jiuzhitang, Kun Pharmaceutical Group, Darentang, Jingjing Pharmaceutical, Kanghong Pharmaceutical, etc.
all rose
against the market.
For the strong performance of the Chinese medicine sector, the industry believes that the frequent activity of Chinese medicine stocks is related
to the recent positive impact of the joint procurement of Chinese medicine pieces, the centralized procurement of proprietary Chinese medicines and the negotiation of the national medical insurance catalogue in the field of Chinese medicine.
For example, recently, the Sanming Purchasing Alliance (National) Traditional Chinese Medicine (Materials) Special Zone (Shandong Internet Chinese Materia Medica Trading Center) issued the "Sanming Procurement Alliance Inter-provincial Traditional Chinese Medicine (Materials) Procurement Alliance Chinese Medicine Pieces Joint Procurement Document" (hereinafter referred to as the "Document") to solicit public opinions
。 Shanghai Securities said that as a national inter-provincial joint procurement of traditional Chinese medicine pieces, this plan adopts the general idea of "quality assurance, upgrading and stable supply", advocates "high quality and high price", does not aim at price reduction, the issuance of joint procurement documents is conducive to the industrial upgrading of the Chinese medicine industry, promotes the high-quality development of traditional Chinese medicine, and with the development of related work in the future, the market of traditional Chinese medicine pieces will be further standardized
.
In addition, the State Food and Drug Administration recently held the expert advisory committee on the strategic decision-making of traditional Chinese medicine management, and pointed out that since the beginning of this year, the efficiency of the review and approval of traditional Chinese medicines has been significantly improved, and the regulatory system of traditional Chinese medicines has been sound and optimized
.
It will accelerate the construction of a scientific system for the supervision of traditional Chinese medicines, and promote the inheritance and innovation and development of traditional Chinese medicines; Vigorously develop scientific research on the supervision of traditional Chinese medicines, and accelerate the modernization of
the governance system and governance capacity of traditional Chinese medicines.
It is understood that in recent years, the state has frequently introduced policies to support the development of traditional Chinese medicine, the development plan of traditional Chinese medicine has been raised to the national level, the development of the industry has ushered in a policy window period, looking forward to the future, driven by policies and the expansion of market demand, the traditional Chinese medicine industry will usher in more opportunities and obtain better development
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.