Strategy Logic:
(1) Against the background of centralized purchasing policy, medical insurance negotiation policy, fierce domestic competition, and difficulties in going overseas, we must base ourselves on the present and take a long-term view to select good companies in the pharmaceutical industry, taking into account short-term and long-term profit requirements.
(2) Companies in traditional Chinese medicine, biological products, innovative drugs, medical devices and other sectors and corresponding industrial chains, with innovative products that can meet clinical needs, individual supply and demand characteristics of volume and price, or low valuations, stable growth, and configurations Attributes.
(3) The valuation of the pharmaceutical industry is at the lower edge of historically low valuations.
(4) The prosperity of the pharmaceutical industry driven by policies has improved significantly
The market size of China's medical and health service industry reached 4.6 trillion yuan in 2019, with a CAGR of 12% from 2015 to 2019, and is expected to reach 10 trillion yuan in 2030. At the medical insurance directory level, the number of traditional Chinese medicines in the medical insurance directories released over the years has also grown rapidly. There are 1,374 species in both 2020 and 2021. At the level of the essential medicine list, my country’s essential medicine list has been continuously expanded since 2009, and the types of proprietary Chinese medicines have achieved rapid growth. In the 2018 Essential Medicines List, 268 types of Chinese patent medicines were included.
Traditional Chinese medicine hospitals account for 12.5% of hospitals and 0.43% of all medical institutions. After the liberalization of policies, the number of medical institutions covered has increased, which is expected to drive the expansion of the formula granule market.
* Rongwei Securities Investment Advisory Team:
Wang Tao License Number: A0210620080004
Sun Baojia License Number: A0210121120001
* Disclaimer: The above content is for reference only and does not constitute investment advice.
* Risk warning: The stock market is risky, so be cautious when entering the market.
