The policy market drives the price of Chinese patent medicine raw materials up

[China Pharmaceutical network industry trends] in recent years, the A-share market has been volatile, showing a structural market Since the second quarter of this year, the pharmaceutical industry "traditional Chinese medicine law" and other favorable frequently, once again attracted the attention of investors (picture source: Baidu picture) on July 1, the official implementation of the law of traditional Chinese medicine will help the traditional Chinese medicine industry enter a benign development era The protection of traditional Chinese medicine law on traditional Chinese medicine is helpful for enterprises to strengthen the layout of upstream traditional Chinese medicine The quality control of traditional Chinese medicine will lay the foundation for enterprise marketing, brand building and internationalization In the second quarter of 2017, the price index monitoring data of Chinese herbal medicine showed that 303 out of 513 varieties of Chinese herbal medicine rose in price, accounting for 59% People in the traditional Chinese medicine industry believe that the price of traditional Chinese medicine will enter a new round of rising cycle Data shows that the prices of some varieties of traditional Chinese medicine have doubled after entering the rising cycle For example, the price of 30.7-40 (Yunnan), which was about 200 yuan / kg at the beginning of last year, soared to 420 yuan / kg, and recently dropped to 370 yuan / kg, up 110%; the price of Dangshen at the beginning of last year was about 30 yuan / kg, and in July, the price rose in a straight line, up to 70 yuan / kg, up 133% Coincidentally, the data of the pharmaceutical manufacturing industry from January to may 2017 released by the National Bureau of Statistics recently shows that from a year-on-year perspective, the main business income and total profit of the pharmaceutical manufacturing industry increased by 11.9% and 15.7% respectively from January to may 2017; from a month on month perspective, the income end and profit end of the pharmaceutical manufacturing industry rose by 5.0% and 8.3% respectively in April From the industry valuation of the secondary market, wind data shows that as of July 14, 2017, the price earnings ratio of Shenwan pharmaceutical and biological industry (TTM overall method, excluding the negative value) is 38.56 times, close to the historical average of 38.61 times PE (2006 to now), and the premium rate of 13.55 Times New PE compared with Shanghai and Shenzhen 300 is 184.58%, which continues to fall In the pharmaceutical sub industry, the commercial valuation of traditional Chinese medicine and medicine is relatively low, only about 31 times (as of July 16, 2017) At present, traditional Chinese medicine companies with traditional Chinese medicine planting bases in A-share market will benefit directly, and relevant leading stocks are expected to attract investors' attention As a leading enterprise in Heilongjiang Province, Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd is a pharmaceutical industry cluster enterprise which mainly produces traditional Chinese medicine products, supplemented by related industries The company has formed a complete pharmaceutical industry chain business model, integrating drug planting, scientific research, production and sales For the current rise in the price of raw materials for traditional Chinese medicine, the relevant director of treasure island pharmaceutical said that the overall rise in the price of traditional Chinese medicine is due to the change in the supply and demand of raw materials for traditional Chinese medicine on the one hand, and on the other hand, the tightening of national policies indirectly makes the overall rise in the price of traditional Chinese medicine In recent years, the supervision department has strengthened the inspection of the Chinese herbal medicine market, which makes it difficult for some inferior products to enter the market At the same time, some Chinese herbal medicine processing and extraction enterprises have also gradually improved their processes, making the cost rise However, some market participants also said that while seeing the increase in the price of raw materials of traditional Chinese medicine bringing income to relevant pharmaceutical enterprises, they also need to pay attention to the increase in the price of raw materials of traditional Chinese medicine, which will bring pressure to the sales of drugs in the middle and lower reaches Therefore, when choosing investment targets, they need to fully understand the business situation and financial data of listed companies.