Traditional Chinese medicine continues to usher in the policy east wind, and the performance of most enterprises has grown significantly

【Pharmaceutical Network Market Analysis】 With the in-depth promotion of the "Healthy China Action" and the continuous transformation of the people's health concepts, the state continues to increase investment in the pharmaceutical industry, optimize the drug review and approval procedures, China's pharmaceutical industry continues to flourish, and the Chinese medicine industry continues to usher in favorable policies, while optimizing the industry structure, accelerating inheritance and innovation, which is conducive to further promoting the high-quality development
of the traditional Chinese medicine industry.

Some analysts pointed out that in the medium and long term, "policy + rigidity of pharmaceutical consumption + stable performance + valuation advantage" jointly construct investment opportunities
in the Chinese medicine industry.

Among them, from the performance point of view, as of August 24, 30 Chinese medicine listed companies in A shares have disclosed the first half of the performance report, of which 20 Chinese medicine listed companies have achieved a year-on-year increase in net profit attributable to the mother, accounting for more than 60%.
In addition, on August 25, Yiling Pharmaceutical and Modern Chinese Medicine Group also released this year's mid-year performance report, the data shows that Yiling Pharmaceutical achieved operating income of 5.
566 billion yuan in the first half of 2022, and achieved a net profit attributable to shareholders of listed companies of 1.
049 billion yuan, an increase of 8.
76% year-on-year; Achieved a net profit attributable to the shareholders of the listed company, net of non-recurring gains and losses, of 1.
050 billion yuan, an increase of 13.
04%
year-on-year.

Hyundai Chinese Medicine Group achieved a net profit of about 49.
9 million yuan in the first half of 2022, an increase of 13.
1%
year-on-year.

It is worth mentioning that the net profit attributable to the mother of baiyunshan, China Resources Sanjiu, Katazai and Jichuan Pharmaceutical 4 listed chinese medicine companies exceeded 1 billion yuan, which was 2.
59 billion yuan, 1.
433 billion yuan, 1.
314 billion yuan and 1.
016 billion yuan
respectively.

From the perspective of the year-on-year growth rate of net profit attributable to the mother, the net profit of more than 10 Listed Chinese Medicine companies has increased by more than 10%
year-on-year.

Among them, the growth rate of Dong'e Ejiao and Jiaying Pharmaceutical is more than 100%.
For the growth of performance, many enterprises said that they will increase investment in research and development and technological innovation
.

For example, Yiling Pharmaceutical has always regarded scientific and technological innovation as the core competitiveness of enterprise development, and has maintained a sustained growth trend
in research and development investment.

During the reporting period, the company invested 384.
8413 million yuan in research and development, accounting for 6.
91%
of the operating income.

Baiyun Mountain in the semi-annual report shows that during the reporting period, the company continued to increase investment in scientific research, strengthen the construction of scientific research platform, accelerate the progress of scientific research information engineering, in the first half of the year, the Group's research and development expenses totaled 441 million yuan, an increase of 14.
36%
year-on-year.

Tablets also showed in the semi-annual report that the company has always adhered to scientific and technological innovation as the core driving force for the development of enterprises, given full play to the advantages of traditional Chinese medicine, focused on the secondary development of advantageous varieties with tablets as the core, and further increased the R&D planning and investment in new products such as characteristic traditional Chinese medicine innovative drugs, classic recipes, and chemical innovative drugs around the fields of high clinical incidence, lack of effective treatment programs, broad market prospects for chronic diseases, refractory diseases, etc.
, and continued to strengthen the driving force for R&D innovation.
Empower enterprises to develop with high quality
.

The agency said that with the intensive introduction of the Chinese medicine industry policy in 2021, 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 Chinese medicines, and Chinese medicine tablets and formula granules can still be increased in price
.

Among them, it focuses on medical insurance immunization of traditional Chinese medicine consumer goods, exclusive basic drugs of traditional Chinese medicines, chinese medicine formula granules, and innovative drugs of traditional Chinese medicines
.

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