Pharmaceutical industry: policy favors attention to jointly push up premium levels

From September 6th, 2010 to September 10th, 2010, pharmaceutical and pharmaceutical stocks have soared by 5.91% this week. All A shares rose by 0.45% last week. The medical sector continued to outperform the broader market.

In the period when the market is repeatedly exploring the path, the good performance of the pharmaceutical sector is expected to become a generally accepted investment logic. The adoption of the "Decision of the State Council on Accelerating the Cultivation and Development of Strategic Emerging Industries " on September 8 also formed a policy-level advantage. At the same time, the two major themes of super bacteria and locust outbreaks also brought market attention and the overall economy of the sector.

We believe that the recent medical stocks can still maintain relative returns. The main reasons are: 1. Drug price reduction may not be as large as expected; 2. Continuing support for follow-up industry policies; 3. Looking at the 11-year forecast price-earnings ratio, the sector The premium is not very high; 4. The defensive attributes of the market environment are still valued.

The top 10 gains last week include: raw material price stabilization: Lukang Pharmaceutical , Health Yuan , Livzon Group ; Good performance expectation: Zhongheng Group , Dong-e-e-Jiao , Tong Ren Tang ; asset injection expectation and valuation security: Renhe Pharmaceuticals ; Right-filling Quotes during the Heat Uptime: Jiaying Pharmaceuticals ;

Rhine creature , Neptune creature .

The key company reports this week are: Shanghai Pharmaceuticals and Health Yuan.

Recommended Companies: 1. Companies that may benefit from the Twelfth Five-Year Plan of the circulation industry: Shanghai Pharmaceuticals (consolidation led to a higher than expected mid-year report and antibiotic asset injection in the second half of the year), and consensus medicine . 2. First-line growth stocks with steady growth in performance: Yunnan Baiyao (toothpaste and transdermal skin have already accounted for a large proportion of net profit, and toothpaste growth rate may reach 60% next year). Dong'e Ejiao (Ejiao's block price difference is already large, price increase is expected to be strong ), Hisun Pharmaceutical (the first generic drug tacrolimus approved by the EU market, will significantly increase profits next year). 3, growth is good, and there is a possible outbreak of performance companies:

Coron Pharmaceuticals (soft plasticizing process of large infusions), Haixiang Pharmaceutical (big performance of leading varieties), Yuheng Pharmaceutical , Shanghai Lai Shi , Renfu Technology, Enhua Pharmaceutical , Zhongheng Group (dominant Variety flexibility, low valuation. .4, with asset integration expectations: Kazakhstan Pharmaceutical shares can also be concerned. 5. The valuation is relatively low: Health Yuan, Huadong Medicine , Yijun Pharmaceutical , Kangyuan Pharmaceutical and Kangmei Pharmaceutical .