What is the sustainability of the pharmaceutical (CXO, etc.) sector mentioned in consecutive days?

Disc Observations

Thursday, the three major A-share indexes maintained weak oscillations throughout the day, and several small pull-ups during the day but the effect was poor. The two markets combined turnover of 920.1 billion yuan; northward funds net selling amounted to 127 million yuan. Plate observation: pharmaceuticals, coal, medical and other sectors rose; and education and leisure, semiconductor, communications equipment and other sectors fell. As of the close: the Shanghai index fell 0.63%, at 3250.26 points; the Shenzhen Composite Index fell 0.83%, at 12305.50 points; GEM index fell 0.36%, at 2706.21 points.

Market outlook

A major stock indexes in the first half of this month after a rapid fall and back to step on the bottom of the box since July 2020, since last week, the continuous opening of the short-term restorative rebound; of course, by the impact of the collective decline in the foreign exchange market overnight, the A-shares also appeared to a certain magnitude of the retracement, but technically see the three indexes are still in the support level above, the structure Keep good, the market is worth continuing to look forward to. Only the current market shrinkage shock run, the main line of the market is still concentrated in the previous overshooting a large range of varieties, only a very small number of plates with more excellent industry boom and performance support to the recent highs near the majority of stocks rebound momentum has weakened. In the current market liquidity of the overall stability of the tone, you can actively track the market capital attention is high as well as the previous experience of significant valuation compression after the plate.

A few days ago, we commented on the stabilization of growth benefits of the large infrastructure and the medium and long-term goals of the energy revolution unchanged, today continue to talk about a few consecutive days mentioned the pharmaceutical and medical (CXO, testing) sector. From the successive release of the 2021 annual report and 2022 1 quarterly report to see the overall profitability of the pharmaceutical sector is good, it is expected that CXO, medical devices, vaccines, traditional Chinese medicine and other fine-molecule industry performance growth rate will be more eye-catching, and the previous market concerns about the "high valuation" and "set of procurement "Two negative factors have also digested a lot of medium and long term view of the current pharmaceutical sector has a better configuration value. In addition, the National Health Commission's latest release of the "new coronavirus pneumonia diagnosis and treatment program (trial ninth edition)" in the detection measures and treatment means are targeted adjustments and optimization. The recent good performance of the pharmaceutical and medical sector, perhaps the market is the above valuation repair expectations and the new version of the policy reform of the two factors of the positive response, and is expected to plate in the upcoming second quarter will continue to get the attention of the market funds.

Operating strategy

Market differentiation, the recent quarterly report can focus on performance is expected to be good or less affected by the external environment of the segment; such as inflation expectations of the big cycle (non-ferrous metals, resources, infrastructure, energy), high-end manufacturing technology (new energy, computers, semiconductors, military), economic recovery of the big consumer (agriculture, white wine, CXO, testing) and so on.

Guangdao Securities Chief Investment Advisor Zhao Yurui, Practice Certificate No.: S0260614060014