Since the beginning of this year, affected by the market shock, the pharmaceutical sector has also entered a phase of adjustment. However, after a period of retraction, the recent attention of funds to the pharmaceutical sector began to appear significantly higher, the relevant ETF products "more down more buy" operation reappeared.
Many industry insiders said that the pharmaceutical sector in the previous period after a substantial pullback, the valuation of the current cost-effective, and therefore attracted a lot of investors to actively buy in order to grasp the investment opportunities. In addition, health care as just need industry, industrial policy direction is clear, the future growth of space, long-term still has a good investment value.
Multiple medical sector ETF scale record high
Wind data show that as of August 5, excluding the newly established funds this year, the field of 36 medical sector ETF products are negative yearly returns, the average return of -19.17%. But the cumulative share compared to the end of last year jumped by 31.6 billion shares, the net inflow of funds during the year amounted to 9.789 billion yuan, and a number of product size hit a record high.
Including, Bosera Hang Seng Healthcare ETF fund share growth during the year, a net increase of 8.542 billion shares, Efonda CSI 300 Medicine and Health ETF, Warburg CSI Healthcare ETF, respectively, with 8.097 billion shares, 6.958 billion shares of the net growth of the second and third place. Inflow of funds, the largest product in the pharmaceutical sector for the Huabao CSI Healthcare ETF, although its size in the first quarter compared to the end of last year fell about 1 billion yuan, but since the second quarter of the funds have returned, as of August 5, a net inflow of 1.853 billion yuan of funds, the product size of the 14.876 billion yuan of the all-time high.
In this regard, the general manager of Huabao fund index research and development investment department, Huabao medical ETF fund manager Hu Jie believes that the pharmaceutical sector still has better fundamentals, its subsectors such as CXO, medical equipment, consumer health care and so on are the market attention of the high boom track. At the same time, the pharmaceutical sector in the previous period experienced a relatively large retracement, the current valuation cost-effective. "Take the underlying index tracked by the medical ETF, CSI Medical Index, for example, its latest PE valuation has been less than 30 times, the lowest value in the past 7 years. Investors will therefore capitalize on the corresponding investment opportunities by actively purchasing medical sector ETFs."
"At the same time, ETFs, as instrumentalized investment varieties, with their unique stock redemption mechanism, ensure that the funds are able to operate in high positions, and therefore track their underlying indexes better, which is a very good investment tool for funds to lay out the market." Hu Jie said, with the development of the capital market, investors are more and more mature, through the ETF for "the more down the more buy" phenomenon is also more and more common.
"Healthcare, as a just-demand industry, is characterized by a clear direction of industrial policy and stable long-term demand." Wan Qiong, manager of Bosera Hang Seng Healthcare (QDII-ETF) fund, said that although the short-term may be affected by the health insurance banded collection policy, the long-term development of the pharmaceutical industry is stable and positive. In particular, after a recent round of major adjustments, the Hong Kong stock medical is now at the bottom of the valuation, cost-effective highlights.
Wan Qiong further analyzed, first of all, the Hong Kong stock health care industry has a high investment value. Despite the short-term policy disturbances, but in the long run, the investment logic of the health care industry has not changed, aging, disposable income and other factors lead to medical consumption in the overall consumption of the proportion continues to increase, the demand side of the growth of certainty is very high. At the same time, the health care industry revenue growth rate as a whole is still good, and the growth is in the hospital terminal has not been restored to the pre-epidemic level of the case to achieve. In particular, the Q1 epidemic exceeded the market's expectations at the beginning of the year, but still 72% of companies achieved positive revenue growth.
"Second, after a sharp decline in the previous period, the current valuation of this part of the asset is at a relatively low historical level. The growth rate of the pharmaceutical industry has been higher than GDP growth for a long time, and after this round of valuation digestion, the Hang Seng Healthcare sector will usher in a better allocation opportunity." Wan Qiong believes that since the end of April, the Politburo economic situation analysis meeting, the policy to further strengthen the stabilization of growth, stabilization of expectations; the recent epidemic in Shanghai and Beijing are significantly better, the resumption of work and deepening of the deepening of production also help the repair of the mood, etc., are the main factors to support the market rebound.
Huatai Berridge fund manager Tan Hongxiang said, pharmaceutical medical, biotechnology, life and health in the global are a very ambitious and vital investment direction, and China's biomedical industry independent of the strong or not, it is related to the vast majority of the people's life expectancy and standard of living, so the pharmaceutical plate has always been considered to be the "white horse stock "Cradle," the phenomenon of "the more you fall, the more you buy" is also a reflection of the market's recognition of its long-term value.
Be optimistic about the investment value of the pharmaceutical sector
It is worth noting that the recent pharmaceutical sector ETF market has also seen a number of innovative products, such as the first batch of vaccine ETFs, the first batch of ETFs for traditional Chinese medicines, from the issuance of the status of the part of the product is also to obtain funds sought after by the early end of the collection.
In this regard, the Huatai Perry Fund Tan Hongxiang said, the company's recent layout of the Chinese medicine ETF and vaccine ETF two products underlying the constituents and the previous medical-related theme of the ETF overlap is relatively low, but also in the biomedicine of this big race on the important supplement, represents a relative differentiation, characteristics of the investment logic and development direction, and therefore attracted part of the funds in favor.
Looking ahead to the future market, Tan Hongxiang bluntly said that the vaccine and biotechnology track as well as the traditional Chinese medicine sector have relatively considerable investment value.
Vaccines and biotechnology track, he believes that the recent emergence of overseas monkeypox, childhood hepatitis and other infectious diseases, as well as the new crown epidemic, are strongly promoting the sustainable development of the vaccine industry. Although in recent years the heavyweight varieties have been approved in the country, the domestic vaccine market size is accelerating the growth trend, but at present China's various types of vaccine vaccination rate compared with developed countries is still at a relatively low level, there is still much room for improvement. "In addition, after nearly a year of adjustment, the valuation of the relevant listed companies are mostly in a more reasonable range, the downside risk of investment is relatively controllable."
Chinese medicine plate, Tan Hongxiang said, Chinese medicine as China's unique resources, play an important role in economic and social development, has an important economic value and cultural value, with the continued release of policy dividends, China's traditional Chinese medicine market is expected to be driven by both supply and demand to achieve steady growth. Demand, the aging phenomenon deepens, national health awareness, will catalyze the booming development of the Chinese medicine industry; supply side, in recent years, the country vigorously develop the cause of traditional Chinese medicine, the new standards for registration and classification of traditional Chinese medicine to promote Chinese medicine innovation to speed up the development of the industry, the market outlook for the development of the industry is broad.
Bosch Fund Wan Qiong also believes that in the prediction of the long-term demand for the pharmaceutical industry, we need to take into account the problem of aging and the rise in disposable income. While the overall consumption level of Chinese society is declining, the demand for healthcare is one that will steadily rise along with the prevalence of the aging phenomenon. "In terms of domestic personal consumption expenditure, for example, the proportion of healthcare consumption for the elderly is only in the single digits, which is on the low side when compared to US data. But medical care in the overall personal consumption expenditures in the high proportion of the domestic demand for the enhancement of a far-reaching prospect, is expected in the short term policy stabilization after the pharmaceutical valuation will usher in a great repair space."
Specific plate investment value, Wan Qiong that the Hong Kong stock medicine and A-share medicine compared with its own advantages and characteristics. First of all, the Hong Kong stock medicine compared to the A-share medicine fell more, so the current Hong Kong stock medicine and A-share medicine compared to its valuation advantage is very prominent. Secondly, the Hong Kong stock medicine is a good complement to the A-share medicine, such as Hong Kong stocks of biotechnology companies, innovative medical (6.38-0.47%, diagnostic shares) device companies, Internet medical companies. Finally, the institutional advantages of the Hong Kong stock market are also more attractive for start-up biotech and innovative device companies to list.
Hu Jie Hu said, the industry fundamentals and policy inflection point has appeared, the medical sector policy surface tends to stabilize in the case of innovation value highlights, the overall valuation of cost-effective. Specifically, first of all, with the local epidemic under control and the recovery of normal production and life order, consumer health care and hospital diagnosis and treatment flow is expected to be significantly restored, medical plate performance growth is expected to rebound; secondly, the health insurance balance is stable, the market is expected to be more fully on the health insurance fee control and device collection and procurement, the policy side is expected to tend to be stabilized; once again, the value of the innovation is highlighted, the reform of the review of drugs and devices and supporting the adjustment of the medical insurance The results continue to show, the third anniversary of the opening of the Science and Technology Innovation Board, the growth of pharmaceutical innovation continues to promote.
"In the long run, the medical industry still has a large growth space." Hu Jie said that the current medical industry in China is still in a period of rapid growth, with the aggravation of population aging, the increasing level of urbanization, the gradual improvement of the medical security system, as well as technological advances brought about by the industrial upgrading of China's health care industry as a whole will continue to show a sustained positive development trend. "Therefore, we recommend that investors increase their allocation to the medical sector at the current point in time."
Suggested through the index investment to grasp the opportunity of the medical track
In the pharmaceutical sector valuation reached a historical low, the investment value is increasingly prominent at the moment, investors should be how to grasp the investment opportunities?
In this regard, the Huatai Berridge Fund Tan Hongxiang said, the medical track field is more specialized, and affected by the policy is greater, the industry competition pattern and technology routes have a greater uncertainty, so for ordinary investors, the index investment may be compared to the choice of individual stocks is a more secure choice.
"In addition, in view of the pharmaceutical track investment is increasingly segmented, unless the individual investor based on their own professional or vocational background of the two have a very clear judgment or point of view to configure the idea of investing in pharmaceutical segments of the ETF may be more appropriate," Tan Hongxiang suggested that it should be used as their own investment portfolio Tan Hongxiang suggested that it should be used as part of one's own investment portfolio and given appropriate investment weighting, in an effort to grasp the trend of opportunities while reasonably controlling risk.
Bosch Fund's Wan Qiong said he has investment advice from strategy to tactics. In the strategic direction, it is necessary to look for medium- to long-term macro mapping; in the tactical direction, it is necessary to grasp the short-term rotation of the index boom. "From the long-term dimension, we suggest looking for the assets that will benefit the most in the current macro environment, including those with policy changes and improving assets; from the medium and short-term dimension, it is important to grasp the assets that have a better degree of boom and capital flows."
Wan Qiong believes that for ordinary investors, for high volatility of the product fixed investment strategy is a good choice. And another simple strategy, is that investors only invest when the index is undervalued, such as setting a standard only in the index valuation in the history of the 30% cents below, or absolute valuation in a certain amount below the investment, the same in the specific investment can also be divided into a few investment.
"Overall, it is recommended that all investors remain patient and keep a normal heart when investing, invest only within their means and do not borrow money to invest." Wan Qiong added.