BOC International: Giving the Mainland Pharmaceutical Industry a “Leading” Rating Focusing on Innovation and Consumer Targets

The Zhitong Finance App learned that BOC International published a report stating that it gave the mainland pharmaceutical industry a “leading” rating. According to reports, the tenth batch of national drug procurement catalogues was recently released. The “Notice on Organizing Pharmaceutical Institutions to Report the Demand for the Tenth Batch of Centralized Drug Procurement Varieties” shows that the tenth batch of national drug procurement has a total of 263 specifications, involving 62 varieties, and is scheduled to be reported on October 18-28. Each province will complete the reporting review and submit it to the National Joint Procurement Office by November 1.

The bank said that the tenth batch of national drug procurement documents shows that the entry threshold for this round of national procurement is the highest in history, and injections account for the highest in history. It is expected that competition will be extremely intense, but for most prescription pharmaceutical companies, there are few large varieties involved, and the impact may be limited. The bank's recommendations are based on the final variety list. Recently, the pharmaceutical sector has fluctuated sharply due to fluctuations in market investment sentiment, but considering that the previous sector's valuation was at a historical bottom, the bank believes there is still room for further restoration.

The bank continues to focus on recommending innovative drug brands that are rich in short-term catalysts such as Xiansheng Pharmaceutical (02096), Hehuang Pharmaceutical (00013), Genting Xinyao (01952), Connoa-B (02162), and Kangfang Biology (09926), which are rich in short-term catalysts, have high profit growth or break-even time points, and are highly resilient in valuation. At the same time, it is recommended to focus on private medical services and medical and aesthetic brands with strong consumer attributes, as well as small and medium-sized innovative pharmaceutical companies that deviate greatly from the market value and fundamentals.