Medicinal biological "money" view promising

The 13th Five-Year Plan for Medicine Enters the Phase of Customs Clearance

As the ageing of the population intensifies, the society is paying unprecedented attention to the medical industry. According to an authoritative source, the “13th Five-Year Plan for the Development of the Pharmaceutical Industry” has already entered the final stage. According to the established thinking, biopharmaceuticals and high-performance medical devices have been identified as key breakthrough areas.

It is reported that compared with traditional medicine, biotechnology drugs have outstanding efficacy and social benefits. In terms of clinical treatment, biotechnology drugs play an important role in the treatment of major diseases that seriously threaten human health, such as genetic diseases, cancer, and diabetes.

Compared with developed countries, China's biomedical industry is still relatively backward. At present, the main factors restricting the development of China's biopharmaceutical industry are shortage of funds, weak R&D strength, lack of industrialization mechanisms, and low conversion rate of scientific research achievements. To this end, the competent department of the Ministry of Industry and Information Technology requires that in the “13th Five-Year Plan for Development of the Pharmaceutical Industry”, biopharmaceuticals must be promoted to achieve key breakthroughs.

For areas that will be listed as high-performance medical devices in the 13th five-year development plan for the pharmaceutical industry, they will be identified as key breakthroughs. According to industry sources, for a long time, the problem of high concentration of imports in the industry and high-end imports has become a bottleneck restricting the development of medical devices. It is time to introduce relevant development plans.

According to Dongguan Securities statistics, there are about 15,000 medical device manufacturers in China, but 90% of the company's income is less than 20 million yuan. In the current medical institutions, only low-end consumables, B-ultrasonics and other low-end products come from domestically produced products, while high-end medical devices such as CT, MI, and nuclear magnetic resonance are basically monopolized by foreign products.

Professor Fan Yubo, Dean of School of Biology and Medical Engineering of Beijing University of Aeronautics and Astronautics, believes that the medical device industry has important functions of stimulating domestic demand and improving people's livelihood. At the same time, it can promote multidisciplinary integration and promote technological innovation and manufacturing level development. It is a transformation of China's national economy. Strategic guidance points for structural adjustment. During the "13th Five-Year Plan" period, the state will pay more attention to and give strong support to the development of the medical device industry.

Bohai Securities pointed out that the proportion of medical device consumption in China is much lower than the international average and has broad room for growth. It is expected that with the vigorous promotion of the national policy on medical devices, high-end domestic medical devices will achieve rapid development. The medical device market at the grassroots and non-public medical institutions is vast, and the home medical device market is also expected to grow rapidly.

Analysts said that under the intensive escalation of population aging, consumption promotion and support policies intensively sponsored, China's medical industry will usher in explosive growth, and now is a good time for dips. Boshi Fund believes that in the second half of the year, the sentiment will be reduced and investors should pay more attention to the performance of individual stocks. First of all, it is worth noting that there is a growing segment of medicines in the stable industry.

Medicinal biological "money" view promising

With the continuous disclosure of the Interim Report, the focus of the market has also shifted to the performance of listed companies. From the perspective of the disclosed performance forecast, the medical biotechnology sector performed quite well. Statistics show that among the biopharmaceutical companies that have issued advance performance announcements in advance, the number of companies whose earnings are expected to increase or increase substantially exceeds 70%.

In the published medical stocks report, Wohua Pharmaceutical (002107 Announcement, Quotes, Information, Financial Report), Tonghua Dongbao (600867 Announcement, Quotes, Information, Financial Reports), Foci Pharmaceutical (002644 Announcement, Quotes, Information, Financial results) The company's performance has achieved a range of growth, and the growth of WoW Pharmaceuticals is the most impressive. In the first half of this year, net profit achieved a year-on-year growth of 691.7%; at the same time, the company also expects to achieve a net profit of 55,476,800 in the first three quarters of 2015. Yuan 63.402 million yuan, an increase of 250% -300%.

The analysis believes that with the disclosure of the Interim Report, the excellent performance of the pharmaceutical industry will provide strong support to the fundamentals of the industry, while the strong endogenous growth capacity and continued growth of the pharmaceutical sector will continue to be favored by the market. In addition, pharmaceutical stocks belong to the defensive concept of large consumption. In the previous years, the “drinking and taking medicines” as a defensive concept was greatly favored by institutions. It not only outperformed the broader market in the past few years, but also stabilized in the market. The time was even higher.

Industry sources said in an interview that with the economic development and improvement of people's living standards, the demand for biomedical products is increasing, and the biopharmaceutical industry has a certain growth. In addition, with the rapid advancement of health care reform and the national essential medicine system, the investment in total health expenditure will also continue its rapid growth trend, laying a solid foundation for the development of the biopharmaceutical industry.

In addition, for pharmaceutical stocks, it also has the characteristics of consumption and technology. The consumption characteristics are mainly due to irreplaceability and rigidity. In particular, the expansion of the coverage of medical insurance in China and the increase in health requirements after the increase in residents’ income have made the demand for the pharmaceutical industry continue to boost; the characteristics of science and technology are mainly reflected in the fact that medicine requires innovation, not only the emergence of new diseases. New drugs are needed, but also because new drugs are more effective.

"Mid-term and long-term view of China's pharmaceutical industry has tremendous room for development. China's medical expenditure is significantly lower than in developed countries. With the development of economic development and health awareness, health care spending will increase rapidly." Analysis of insiders pointed out. In addition, the aging of China's aging trend will inevitably enhance the growth of the pharmaceutical biotechnology industry. According to statistics from the United Nations, by the middle of this century, China will have nearly 500 million people over 60 years of age. As China's population ages, the demand for old-age care and health care in the entire society continues to rise. There will inevitably be considerable room for growth in the future.

First of all, the listed companies of the central enterprises of the pharmaceutical industry have relatively few resources. Therefore, the opportunities for the listed companies to become integrated platforms for the central enterprises are rather large, and the space for capital operation is also large. Second, the pharmaceutical industry is in a high-speed growth period, and it already contains many opportunities for industry consolidation. The integration of upstream and downstream industry chains is a relatively large trend.

Stocks will be Taiwan

Hejia shares (300273 announcements, quotes, information, financial reports)

The company is mainly engaged in the research and development, production, sales and service of medical equipment. Its main business includes minimally invasive treatment equipment for tumors, oxygen sieve equipment and engineering for medical molecular sieves, general medical equipment and medical equipment distribution. On the 25th, the company announced that it had successfully added 44.13 million shares to Tianfeng Tiancheng, Zhongming, and Zhongrui Rongsheng, and it still successfully raised 1 billion yuan in the event of a liquidity crisis in the market. It is used to increase the supporting funds for the overall construction of the hospital, and to increase the amount of capital for Hengyuan Leasing to carry out financial leasing business.

Haitong Securities pointed out that Hejia Power's 2014 financial leasing income was 46.58 million, an increase of about 430% compared with the same period of last year. However, the rapid development of the business also brought great financial pressure to the company. The issuance raised a total of 1 billion yuan to increase capital for Hengyuan Leasing to carry out financial leasing business, solved capital bottlenecks, reduced financial risks and improved profitability, and helped comprehensive platform company strategy.

Sinopharm (600511 Announcement, Quotes, Information, Financial Report)

The company is one of the first six pilot reforms of the state-owned company Sinopharm Group's listed companies. According to the analysis, in 2015, the company faced three major opportunities for state-owned enterprise reform, settlement of peer competition, and outreach and acquisition. 1. The company was identified as the first batch of pilot units for the reform of the mixed ownership system of China Pharmaceutical Group; 2. In March 2011, Sinopharm Group promised to fully resolve the competition within the next five years, and the company will face the opportunity of asset integration; 3. China Pharmaceutical stocks in 2014 For the first time in the annual report, the phrase “actively seeking suitable investment projects and merger and acquisition targets” means that the company began to consider outreach and acquisition, which may bring additional flexibility.

CSC believes that as the first batch of pilot units of Sinopharm Group to develop a mixed ownership economy, the percentage of restricted A shares held by the company's state-owned legal entities accounts for 42% of the total share capital, and the major shareholders promised to resolve the issue of horizontal competition by March 2016. The company is expected to take this trial of mixed changes in the national drug, further deepen the market-oriented operation and management mechanism, reduce the proportion of limited-sale shares; through the integration of assets within the group, to solve the problem of competition with the industry.

Sinopharm Accord (000028 Announcement, Quotes, Information, Financial Report)

The company is one of the first six pilot reforms of the state-owned company Sinopharm Group's listed companies. Guotai Junan Research reported that the company is the first pilot state-owned enterprises mixed reform pilot central enterprises, will steadily promote mixed reform and improve incentives. The company's history has been very successful. The management has enough validation and ability to gain recognition and resources. It is expected that in the future, it will endeavor to achieve business transformation and achieve leapfrog development through endogenous expansion.

Analysts believe that under the favorable policy expectations, the fiery concept of state-owned asset reform is expected to continue. However, the consistent and consistent upward trend of Sinopharm will lead to an increase in the willingness of the company to hold stocks. The share price is expected to maintain a strong pattern. In addition, the company has actively explored new business models in recent years. It has established 11 DTC pharmacies and has conducted medical cooperation projects with the Fifth Affiliated Hospital of Southern Medical University. The 2014 annual report has proposed to continue to strengthen the smart supply chain and network sinking for the future B2C. And O2O business layout, but also to help the stock market performance.