Let’s first review the few stocks selected in the previous few days .
Judging from the current situation, the market conditions in recent trading days are relatively poor, but these stocks have performed well. I believe that if is better in the market, , it will definitely have a better performance. I have bought all these stocks myself, which to some extent avoided the sharp drop in the past few days.
[Today's attention]
Kangyuan Pharmaceutical
[Technical Rating] ⭐⭐⭐⭐⭐
This stock has attracted my interest. The market has mainly occurred in the early trading days in the morning. It has risen for five consecutive trading days, and it has been a steadily shrinking volume. However, in these 5 trading days, A shares performed very poorly, which is a very strong symbol. Although it is a Chinese medicine stock, its trend is obviously much stronger than that of CSI Chinese Medicine, which gives me the feeling that it is stronger.
In addition, the recent K line chart is also quite interesting. It is a small W bottom, which generally shrinks volume, but it steadily increases volume when it rises. In addition, the volume has increased sharply today, and the bottom chips did not move much, which is also a very interesting point. If the volume can be reduced and the price will rise tomorrow, it will be perfect.
From a longer cycle, it seems to have shown a reversal trend since 2022, with the trading volume density reaching the highest point in 2015, and in 2022 it has shown a trend that is significantly stronger than the market and sectors.
[Industry Rating] ⭐⭐⭐⭐
The first listed company in Shanghai and Shenzhen markets in the third quarter report was lost to Kangyuan Pharmaceutical, exceeding expectations .
From the fundamentals point of view, the company's performance is quite good. Its performance growth for seven consecutive quarters is a company with faster recovery among traditional Chinese medicine. The current revenue is close to 2019, but the net profit is still a little different from 2019, but the recovery is very fast.
Currently, the company's main product line focuses on the advantages of traditional Chinese medicine such as viral infectious diseases, gynecological diseases, cardiovascular and cerebrovascular diseases, , and orthopedic diseases. The company has more than 200 drug production approval documents, including more than 40 exclusive varieties of traditional Chinese medicine (some are protected varieties of traditional Chinese medicine), and more than 100 varieties have been included in the 2021 National Medical Insurance Directory, including more than 40 Class A, more than 60 Class B, and more than 20 exclusive varieties; a total of 47 varieties have entered the National Basic Medicine Directory , of which 6 are exclusive varieties.
industry is very good, and the company is also very good. institutions hold more shares in .
[Value Rating]⭐⭐⭐
The company's current dynamic price-to-earnings ratio is 21 times and the price is 13.93. If calculated based on the 2019 earnings per share of 0.86, the valuation is about 16-17 times. I believe that according to the current recovery progress, we will soon be able to recover to the performance of 2019.
However, the external valuation environment is not very good, and the market is currently pessimistic about inflation expectations in the fourth quarter of Europe and the United States. On the one hand, Russia and Ukraine are becoming increasingly fierce, and it is basically unlikely to expect Russia and Europe to ease relations; on the other hand, people have recently felt that this winter may be colder than in previous years, and the demand for energy may exceed the past.
So, the market is still quite worried, but the valuation of the entire traditional Chinese medicine industry is not high, and the demand for medicine cannot be suppressed. Kangyuan Pharmaceutical's performance rebound is a good example. Overall, the valuation of this stock is still quite moderate.
[Risk Warning]
does not constitute any investment advice. Investment is risky and the risks are at your own risk. Short-term investment in , the probability of winning, be more determined and decisive.
