Jinwu Financial News | China Post Securities said that since the end of September, the pharmaceutical sector has rebounded rapidly by about 29%, under the strong favorable impetus of a package of national incremental policies to solidly improve the upward structure of the economy, reversing the decline that has continued for nearly 4 years. Looking at current PE (TTM), A-share pharmaceuticals is 32 times and Hong Kong stocks are 23 times higher. The bank believes that the increase in market risk appetite will accelerate sector valuation repair. The shareholding ratio of the 2024H1 Pharmaceutical and Biological Sector Fund is 7.3%. Although it has declined from the end of 2023, it is still at a high level in history, indicating that institutions are generally optimistic about the sector's subsequent relative earnings.
Judging from the performance, the overall revenue growth rate of Pharmaceutical Biology in 2024Q2 was -1.26%. Although the performance was poor, one common characteristic of the sectors that were putting pressure on the performance of these sectors, such as vaccines, CXO, ICL, and traditional Chinese medicine, is that the impact of the base figure will gradually be eliminated from the second half of the year; however, the marginal improvement of blood products, medical consumables, and APIs with high revenue growth is expected to continue in the second half of the year. Therefore, the bank believes that the general rise in the sector is expected to continue. Two-wire faucet.
