Pharmaceutical industry: The industry may enter a new round of adjustment

Review of market performance this week (2010.9.13 --- 2010.9.17).

This week, the medical and biotechnology sector entered an adjustment trend after a strong performance last week. As of September 17, the biomedical sector fell by 2.39%, the Shanghai Composite Index fell 2.42%, the Shanghai and Shenzhen 300 fell 2.43%, and the pharmaceutical industry index rose. The decline is similar to that of the broader market.

This week, there was a general decline in various industry sectors, pharmaceutical bio-sector fell 2.39%, the decline rate in the Shenwan 23 sub-sectors ranked ninth. The price-earnings ratio (total method, TTM) for the pharmaceutical bio-sector is currently 39.21 times, and the overall P/E ratio for the 2010 sector is 35.40 times.

In the pharmaceutical industry this week, stocks fell, but there are still some stocks eye-catching performance. ST Changxin’s strong rally is expected due to the restructuring of Qingdao Qieng Chemical. Stimulated by the collective outbreak of red-eyed disease, Tianmu Pharmaceutical and Zhongzhu Holdings had a strong daily limit on Friday. Some individual stocks in the medical device sub-industry also performed well this week, with Xinhua Medical and Jiu An Medical all had good gains. Among the top 10 stocks in this week's decline, Lianhua Pharmaceutical and Jingxin Pharmaceutical, which had accumulated huge gains in the concept of super bacteria and Salmonella in the previous period, adjusted continuously under the pressure of valuation, and there were signs of early intervention funds leaving. With the current situation in which the GEM restrictions on the sale of bans and the resignation of senior executives are on the rise, the entire GEM market is under greater pressure. The three GEM stocks, Hongri Pharma, Anke Bio, and Laimei Pharma are also under pressure. A cold encounter in the market.

Next week's trend of the pharmaceutical sector.

Next week, due to the holiday season, investors may hold a wait-and-see attitude, the broader market may still be operating in a weak pattern, the short-term trend of the medical bio-block is not optimistic. From the perspective of long-term investment, we are still optimistic about the more specific types of traditional Chinese medicines that can benefit from the increase in the volume of base medicines, and the leading pharmaceutical distribution companies that have become increasingly focused on the concentration of pharmaceutical business, and those with good growth performance, and significant earnings growth and performance assurance. Individual stocks.

Industry News:

Special research of Guangyao Pharmaceutical Group, anti-superbacterial Chinese medicine within five years or available; Ministry of Health rumored to establish wholly-owned foreign-funded medical institutions rumor; China has established a certain immune barrier to the influx of hepatitis A; Hubei new medical insurance drug catalog will enable the increase of drug types; Anhui basic drugs Low price bids lead to disputes; OTC price coordination mechanism or will establish drug companies will encounter problems.

Listed company dynamics.

Renhe Pharmaceutical (000650): It is proposed to transfer 75% equity of Jiangxi Pharmaceutical; Lepu Medical (300003): Obtained 8 products CE certification; Jiangjiao (600750): Jiangzhong Group planned restructuring; Conba (600572) ): Shareholders and the company promised to avoid competition in the same industry and asset injection; Sihuan Biological (000518): The major shareholders reduced the number of shares.