135 biomedical companies forecast nearly 60% year-on-year growth

With the arrival of the semi-annual report disclosure season, a number of Listed Companies in the bio-pharmaceutical industry published their semi-annual report in advance. According to Tonghuashun data, as of July 16, 135 listed companies in the biomedical industry had issued performance forecasts for the first half of 2019 according to Shenwan industry classification. Except for 4 companies that expressed uncertainties in performance, 51 listed companies expected performance to decline year on year, accounting for about 37.8%, which exceeded. Half of the listed companies (27) expect their performance to decline by more than 50% year-on-year in the first half of this year. In addition, 80 listed companies in the biomedical industry are expected to achieve year-on-year growth in the first half of this year, and 35 companies are expected to increase their net profit by 50% or more. For the performance of Listed Companies in the industry, a biomedical industry analyst told reporters that at present, the health insurance fund is tightening, the state has issued a series of price-reduction and fee-control policies, and the continuous adjustment of the industry has led to the performance differentiation of listed companies. In the future, with the gradual fall of policies, this trend will become more obvious.

Recently, East A Jiao issued a semi-annual performance forecast for 2019. The company expects its performance to decline 75% to 79% in the first half of this year compared with the same period last year. The company said that with the gradual expansion of enterprise scale, the overall macro-environment and other factors, as well as the market's expectations of the return of Ejiao value gradually reduced, the company's downstream traditional customers took the initiative to reduce inventory, resulting in the first half of the company's product sales declined year-on-year. Affected by the news, the stock price of East Ajiao dropped on July 15 and dropped again on July 16 by 5.59%. During the two trading days, the company's market value shrank by more than 3.8 billion yuan.

East Asiatic Jiao was once sought after by the market as a white horse stock, and its performance changes also attracted the attention of the market. It is worth mentioning that in the A-share bio-pharmaceutical industry, the performance of the decline is not only East-A-Jiao. According to the data of Tonghuashun, 135 listed companies in biomedical industry have issued performance forecasts for the first half of 2009, of which 51 listed companies are expected to decline year-on-year, accounting for about 37.8%. At the same time, 80 listed companies in the biomedical industry are expected to show year-on-year growth in their performance in the first half of this year. Thirteen companies, such as Tianyu, Enlightenment Guhan, Xingqi Eye Drug, Taihe Health, Hepburn, Guangshengtang, etc., expect net profit to increase by more than 100% in the first half of this year. At the same time of performance differentiation of, the market value of biomedical listed companies is also obviously differentiated. According to the data of Tonghuashun, as of July 16, 96 listed companies in the A-share biomedical industry had a market value of more than 10 billion yuan, of which 4 were Hengrui Medicine, Mairui Medicine, Yaomingkang De and Yunnan Baiyao with a total market value of more than 100 billion yuan. By contrast, the total market value of 205 listed companies is less than 10 billion yuan, of which 126 companies have a total market value of less than 5 billion yuan and 57 companies have a total market value of less than 3 billion yuan.

 Analysis shows that the performance of biomedical industry and market value differentiation trend, and policy adjustment are closely related. Medical insurance control fees, purchasing with quantity and key monitoring of auxiliary drugs will reshape the market structure. It is reported that on July 12, the State Medical Insurance Bureau held a "Symposium on the Enterprises of Drug 4+7 Collection and Expansion Face", which planned to fine-tune the recruitment mechanism, push the first batch of collections and acquisitions from 4+7 cities to the whole country, and launch the second batch of collections and acquisitions under the new mechanism next year. According to the research report issued by Huatai Securities Co., Ltd.

Huatai Securities Co., Ltd., the first batch of supermarket market expansion speed and strength, allowing multiple suppliers to basically meet market expectations, and the second batch of gathering and acquisition launch time is slightly slower than market expectations. The trend of transformation of generic pharmaceutical industry remains unchanged, from high single product to generic pharmaceutical factory, from high gross profit and high cost to low gross profit and low cost.

However, the market also has tremendous opportunities for development. Recently, "Opinions on Implementing Health China Action", "Implementation and Assessment Program of Health China Action Organization", "Health China Action (2019-2030)" was released to the public. These three documents are collectively referred to as the documents related to the Healthy China Action. They can be regarded as the construction plans and road maps of the Healthy China Strategy and the Outline of the Healthy China 2030 Plan. Some analysts believe that under the trend of aging, the promotion of health demand will stimulate the development of related industries, especially the biomedical industry. On May 27 this year, East China Pharmaceutical issued a notice saying that the company signed the Share Transfer Intention Letter with Yu Youqiang, the controlling shareholder of Zuoli Pharmaceutical Company listed on GEM, and Wuling Equity Investment Partnership (Limited Partnership) of Deqing County, the shareholder. The company intends to accept the transferred adjuvant drugs by means of agreement transfer. The total number of shares in the industry is 113 million, accounting for 18.60% of the total shares in the adjuvant pharmaceutical industry, and the total number of transfers will not be higher than RMB 1.06 billion.