After a strong counterattack, the track stocks on February 15 finally breathed a sigh of relief. CXO leader WuXi AppTec up and down, the market stopped falling?
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Medical concept stocks soared, and WuXi AppTec rose and stopped
Yesterday's intraday rally was the most fierce medical concept stocks, especially the CXO plate, Yaoshi Technology, Kanglonghua rose by more than 10%, and the 270 billion-dollar WuXi AppTec Jedi counterattacked, once up and down! Zhaoyan new drugs, Gloria Ying up and down, in addition, 380 billion medical giant Mindray Medical rose more than 6%, Aier Ophthalmology rose more than 5%, Wantai Biologicals rose to a stop.
CRO concept (Source: Snowball)
WuXi AppTec (Source: Snowball)
Celebrant Medical Health, a top-100 billion fund manager, continued to bleed back, and after yesterday's net value rebounded by 1.74%, today's intraday valuation is expected to rise by more than 4%. CXO companies have recently disclosed their 2021 performance forecasts, and the head companies that the market is more concerned about are WuXi Biologics, WuXi AppTec, Kanglong Chemical, Tiger, Gloria Ying and Zhaoyan New Drugs are expected to maintain a high year-on-year growth rate. The average growth rate of net profit of the 6 CXO companies is 65%, and the net profit of Gloria Ying, which has a relatively lower growth rate, is expected to have a rapid growth rate of 41-46% year-on-year; the disclosed revenue growth rate is basically around 40% or even higher.
In this regard, many securities institutions have spoken out. SPDB International said that this reflects that the CXO industry boom is still at a high level, orders are sufficient, and the head CXO enterprises can quickly undertake orders after the release of production capacity, generate revenue, and translate into high-speed performance growth. The latest research report of Soochow Securities said that in 2022, the average price-earnings ratio of domestic mainstream CXO companies is 41 times, and the average PEG value is 0.93, compared with foreign CXO companies, the valuation of A-share CXO has been greatly digested. Zheshang Securities analysis, 2021-2022 CXO sector by policies (medical insurance negotiations, CDE, trade conflicts) and investment and financing impact ushered in the bottom of historical valuation, external catalysis continues, internal business quality and overseas large customer recognition continues to improve the prospect, optimistic about the CXO market.
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Behind the change in stock prices, it is actually moving forward steadily
In fact, contrary to the decline in stock prices, WuXi AppTec's performance has been steady. From 2018 to 2020, the company's revenue increased from 9.614 billion to 16.535 billion, and net profit increased from 2.261 billion to 2.960 billion. On January 18 this year, WuXi AppTec issued a performance forecast, the company expects to achieve operating income of 22.819-22.902 billion yuan in 2021, an increase of 38.0% to 38.5% year-on-year; the net profit attributable to the mother is expected to be 49.73-5.032 billion yuan, an increase of 68.0% to 70.0% year-on-year.
Under the medical insurance control fee and the collection of medicines, the pharmaceutical industry is like a bird of fright, the end of the era of huge profits and the reshaping of valuation logic have made pharmaceutical companies suffer Davis double killing in the capital market, and investors are full of pessimism. Markets tend to overestimate the short term and underestimate the long term. The ultimate goal of collection is not to suppress the normal profits of the pharmaceutical industry, but to reduce the intermediate links and gray areas of pharmaceutical sales, so that pharmaceutical companies can invest more resources in research and development, so that the industry can develop healthier and more quality. After the short-term mud and sand brought about by policy pressures, long-term differentiation within the pharmaceutical industry is inevitable.
Tidy up | Qiao Weijun
Typography | Qiao Weijun
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