The long-term development of the Chinese medicine sector is optimistic, and these segments are being focused on

【Pharmaceutical Network Market Analysis】Up to now, the performance report card of enterprises in the Traditional Chinese medicine industry has been revealed
one after another.

From the overall point of view, the overall performance of the industry in the first half of this year is obviously differentiated
.

According to the combing point of view, more than half of the pharmaceutical companies' net profit attributable to the mother achieved year-on-year growth, such as Dong'e Ejiao, Tablet Zai Zhen, Jiuzhitang and so on
.

Specifically, in the first half of the year, Longshen Rongfa achieved operating income of 39.
65% year-on-year to 150 million yuan, and net profit increased by 568.
10% year-on-year to 1.
961 million yuan
.

Long Shenrong said that the company through strengthening the construction of the marketing team, optimizing business integration, actively develop the market, intensive cultivation, drug sales revenue to achieve year-on-year growth
.

On August 19, the 2022 semi-annual report disclosed by Dong'e Ejiao showed that the company achieved operating income of 1.
826 billion yuan in the first half of the year, an increase of 8.
25% year-on-year, and achieved a net profit attributable to shareholders of listed companies of 308 million yuan, an increase of 106%
year-on-year.

It is understood that since the listing of East Ejiao, the core product ejiao block demand is strong, and the price has continued to increase, which has led to the rapid growth of
the company's performance.

On August 19, Katazai disclosed its semi-annual report, and the company achieved operating income of 4.
423 billion yuan in the first half of the year, an increase of 14.
91% year-on-year; Attributable net profit was 1.
314 billion yuan, an increase of 17.
85% year-on-year; Attributable non-net profit was 1.
317 billion yuan, an increase of 18.
08%
year-on-year.

Jianmin Group's net profit in the first half of the year rose by 18.
7%
year-on-year.

In addition, Jiuzhitang expects the net profit attributable to the mother in the first half of the year to be 307 million to 351 million, an increase of 39.
83% to 59.
87% year-on-year.
.
.
Of course, there are ups and downs, and it is reported that the performance of some Chinese medicine companies such as Tailong Pharmaceutical and Zhongheng Group in the first half of the year has declined
.

Among them, Zhongheng Group released a performance forecast on the evening of July 14, and it is expected to achieve a net profit attributable to the owners of the parent company of 80.
0164 million yuan to about 120 million yuan in the half year of 2022, a year-on-year decrease of 65.
25% to 76.
83%
compared with the same period last year.

Although the performance of the Chinese medicine sector is obviously differentiated, the industry is still generally optimistic about the overall development of the Chinese medicine industry, especially the consumer goods of Chinese medicine and the exclusive varieties of
Chinese medicine.

It is understood that Huatai Securities Research Report pointed out that the long-term optimism about the growth of consumer Chinese medicine: 1) consumer Chinese medicine enjoys a relatively relaxed policy environment, while facing a lower pressure of collection and procurement; 2) The huge middle class supports strong demand, and the vigorous development of TCM diagnosis and treatment is expected to enhance residents' awareness of TCM consumption; 3) Brand value originates from historical accumulation and marketing behavior, empowering enterprise category expansion and pricing system
.

We are optimistic about the structural opportunities for the consumption of traditional Chinese medicine in the short and medium term, that is, products with strong brand power and excellent efficacy, which are expected to outperform the market
through three paths: business improvement, product price increase and equity incentive under the improvement of pharmacy chain rate, the decentralization of publicity media, and the rise of e-commerce platforms.

Southwest Securities said that with the intensive introduction of policies for the traditional Chinese medicine industry in 2021, 2022 will gradually enter the cashing period
.

Price increases and inventory cleanups have led to performance differentiation
.

Favorable policies such as Chinese medicine tablets/formula granules, Chinese medicine innovation, internationalization of Chinese medicines and traditional Chinese medicine medical services have gradually landed, and medical insurance payments have been inclined to Traditional Chinese medicines, and Chinese medicine tablets and formula granules can still be increased in price
.

In addition, it also pointed out in the research report that the performance of the Chinese medicine sector is obviously differentiated, and the industry is more optimistic about brand Chinese medicine consumer goods and exclusive basic drugs of
Chinese medicine.

Xiangcai Securities said that "policy + rigidity of pharmaceutical consumption + stable performance + valuation advantage" jointly constructed investment opportunities
in the Chinese medicine industry.

It will maintain the industry's "overweight" rating, focusing on the relevant policies of the Chinese medicine industry, looking for investment opportunities in the Chinese medicine industry, it is recommended to pay attention to three main lines: 1) inheritance innovation line, focusing on Chinese medicine innovation, brand Chinese medicine and Chinese medicine formula granules; 2) Policy haven line, focusing on partial consumption and OTC terminal expansion; 3) Pay attention to the chinese medicine targets related to the prevention and treatment of
new crown.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.