Pharmaceutical stocks again become the "meat and potatoes"?
Recently, in the inhalation vaccine again under the catalyst of attention, vaccine leader Conocino ushered in a strong surge, especially its Hong Kong shares out of a wave of strong upward trend, November 2 Hong Kong shares rose more than 60%, less than a month's time, the share price has risen nearly two times.
Previously, Kangxinuo restarted the repurchase, November 1 repurchase of about 170,100 A shares, the repurchase price of 193.38 yuan -200 yuan / share, *** spent about 33,450,900 yuan. However, Hong Kong stocks, some shareholders have recently reduced their holdings, according to the latest data from the Hong Kong Stock Exchange, the U.S. Capital Group (TheCapitalGroupCompanies, Inc.) continued to reduce its holdings of H shares of Concinol Biologicals on November 3, which has been its seventh reduction in the past six months; the proportion of shareholdings fell from 25.11% to 19.53%, a reduction of 5.58 percentage points; the number of shares held by about 33.31 million shares to about 25.91 million shares, the cumulative reduction of 7.4 million shares. Especially after the recent strong rebound of Concinol bio increased the reduction of holdings.
It is worth noting that the recent pharmaceutical stocks as a whole is rising trend, the funds are also intensive layout. Data show that since October 12, the pharmaceutical and biological index (Shenwan) rose 15.03%, volume significantly enlarged. Most of the net value of the pharmaceutical fund has also rebounded sharply in the near future, Harvest Mutual Selection net value, GF CSI Hong Kong Innovative Pharmaceuticals ETF, Changsheng Healthcare Industry, Redland Innovative Healthcare, Changsheng Pension Healthcare Industry, Beixin Ruifeng Healthy Life Theme, Changsheng Competitive Advantage, Efatar CSI Hong Kong Stocks General Pharmaceuticals and Healthcare Comprehensive ETF, Southern Hang Seng Hong Kong-listed Biotechnology ETF, Huaxia Hang Seng Hong Kong-listed Biotechnology ETFs, etc. all saw net value growth of more than 25 percent.
Vaccine leader recently soared nearly twice
On Nov. 4, vaccine leader Conxinol soared again, with A-shares closing up 4.08 percent at 258 yuan/share, and H-shares closing up 5 percent at 117.6 Hong Kong dollars/share, with the latest combined total market value of 44 billion yuan. Recently, Conxino share price trend is strong, especially on November 2, the day, Conxino A, H shares rose at the same time, A shares 20% up, Hong Kong shares rose 63%, Hong Kong shares once reached 147.5 Hong Kong dollars / shares, compared with the low point of the year on October 12 rose more than 2 times.
The reason behind this round of share price rises for Concinol is that the inhaled vaccine has gained attention again.
On September 4, Conxinor released an announcement that its development of recombinant new coronavirus vaccine (type 5 adenovirus carrier) for inhalation was recommended by the National Health and Health Commission, and the State Drug Administration agreed to incorporate it as a booster shot for emergency use.
On October 25, Shanghai launched the booking for the registration of the recombinant new coronavirus vaccine (type 5 adenovirus carrier) for booster vaccine for inhalation, and has been launching the booster vaccination since On November 1, Conxion Bio released the news that following Shanghai, thirteen cities in Jiangsu Province have also carried out the deployment of the new coronavirus vaccine for inhalation. Among them, Wuxi City*** has set up nine vaccination sites for the new crown vaccine for inhalation, which will be available at outpatient clinics from mid-November, and Huai'an City has 18 vaccination sites.
In response to the news that the inhaled vaccine is being promoted, UBS issued a research report saying that the inhaled vaccine is expected to become the mainstream in the future, as it produces antibodies directly in the upper respiratory tract, and is expected to gradually replace the injectable vaccine due to fewer side-effects and a simpler administration process. Allowing the inhaled vaccine to be administered means that the mainland may restart mass vaccination campaigns in the near future, in preparation for the gradual normalization of the vaccine in the future.
Additionally, the share price was further boosted by the resumption of buybacks by Conocinol.
On Nov. 1, Conxinor announced on the Hong Kong Stock Exchange that it repurchased about 170,100 A shares on Nov. 1, at a price of 193.38 yuan-200 yuan per share,*** costing about 33,450,900 yuan.
However, some shareholders have also started to reduce their holdings. According to the latest data of the Hong Kong Stock Exchange, the United States Capital Group (TheCapitalGroupCompanies, Inc.) continued to reduce its holdings of Kangxinuo biological H shares on November 3, which is its seventh reduction in the past six months; the proportion of shares from 25.11% to 19.53%, a reduction of 5.58 percentage points; the number of shares held by about 33.31 million shares to about 25.91 million shares. The cumulative reduction of 7.4 million shares. Especially after the recent strong rebound of Concinol Biologics increased the reduction of holdings.
Pharmaceutical stocks ushered in the rebound
It is worth noting that not only is Conxinol, the recent pharmaceutical stocks have ushered in a big rebound. during the period from October 12 to November 7, the pharmaceutical and biological index (shenwan) rose 15.03%, in the shenwan level industry in the front.
Specific to the level of individual stocks, engaged in biomedical cryogenic storage equipment industry, the NSE-listed shares in the same interval rose 275.87%, engaged in the research and development of chemical drugs, proprietary Chinese medicines, production and sales of Hwasen Pharmaceuticals rose 143.19%, microelectrophysiology-U, Zongsheng Pharmaceuticals, Rongchang Biologicals, Nuocheng Jianhua-U, HaiChuang Pharmaceuticals-U, David Medical, Shuangcheng Pharmaceuticals and others all rose more than 60 percent.
Most of the net value of the pharmaceutical fund has also rebounded sharply in the near future. since October 12, the market's net value of the highest growth in the top three funds are mainly invested in the pharmaceutical industry, of which, Harvest Mutual Select net value growth of 31.62%, as of the end of the third quarter of the top ten long positions in pharmaceutical stocks, GF CSI Hong Kong Innovative Pharmaceuticals ETF, the Changsheng medical industry net value growth of 29.06%, 29.03%, respectively. 29.06%, 29.03%. In addition, the net value of Redland Innovative Healthcare, Changsheng Pension and Healthcare Industry, Beixin Ruifeng Healthy Life Theme, Changsheng Competitive Advantage, Efatar CSI HK Stock Connect Pharmaceuticals and Healthcare Composite ETF, Southern Hang Seng Hong Kong-Listed Biotechnology ETF, and Huaxia Hang Seng Hong Kong-Listed Biotechnology ETF grew by more than 25%.
For the reasons of the recent rebound in pharmaceutical stocks, Wang Dapeng, director of research and management department of Morgan Stanley Huaxin Fund and manager of DAMO Health Industry Mixed Fund, analyzed three factors:
Policy-wise, the details of the recent collective purchasing have come out one after another, and the overall design framework is more scientific and reasonable, and the expected price reduction is also more moderate than that expected before, which to some extent reversed the negative impression of the collective purchasing. We all have a negative impression of the collectivization.
Fundamentally, from the three-quarterly results disclosed some time ago, most pharmaceutical companies, especially the head of the company's performance is still relatively healthy, showing marginal improvement in the state, reflecting the anti-risk ability of the pharmaceutical companies, but also for the entire pharmaceutical sector constitute support.
Funding, as of the end of September this year, the pharmaceutical and biological plate of institutional positions reached a relatively low level in history, so with fewer chips can pry a larger rise.
Pharmaceutical plate has entered the medium- to long-term value range
Looking ahead to the market, Wang Dapeng said, for the pharmaceutical plate bullish core logic has not changed. First of all, the current domestic facing a huge release of medical demand, the industry's overall growth rate is still expected. Secondly, innovation and upgrading, manufacturing upgrading has been the main line of long-term development of the pharmaceutical industry. In addition, the pharmaceutical sector has experienced a long period of adjustment, the valuation has been in the history of relatively low, the price is more prominent, has entered the layout of the medium and long term value range. Specifically to the subdivided track, mainly optimistic about the direction of CXO, medical devices, vaccines and so on.
"At the moment, I still have strong confidence in medicine, under the premise of the industry fundamentals have not changed, cheap is the hard way. I am not sure when and in what way the industry will usher in a catalyst, but it is currently a relative bottom area." Wan Minyuan, manager of the Rongtong Health Industry Fund, told a brokerage China reporter as much in late October.
Wan Minyuan analyzed that in the current context, the pharmaceutical industry is more of a structural opportunity, and is optimistic about the segmentation of the track with medium- to long-term logic, specifically including: CXO, retail pharmacy, import substitution of high-end devices, consumer healthcare, and APIs, as well as traditional Chinese medicine. With the demand, customer flow bottom pick up, superimposed on the prescription outflow and centralization, retail pharmacy development space; subject to medical insurance fee control, the next two years, domestic substitution is a major trend, domestic high-end devices is also the layout direction; consumer health care is both "consumer" and "health care" quality track. "Quality track, such as ophthalmology, oral health care will benefit from the epidemic repair. In the past, due to the epidemic prevention and control led to the lack of some consumer scenarios, but the relative rigidity of consumer health care demand, the future probability that consumers will spend to make up for the consumer health care unit price is high and not subject to the impact of health insurance control, the competition pattern is good; in the past 2 years, the upstream raw material costs, downstream demand is relatively low, API performance is damaged, the stock price is in a relatively low position. APIs have cyclical properties, from the perspective of the cycle, buy in poor performance, tracking upstream and downstream of the two major constraints, the improvement of the stock price will also react.
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