The broader market took a sharp dive in July, with all sectors in a significant decline. Among the relatively small declines were the agriculture, forestry and fishing, and defence and military sectors, followed by the banking, leisure services and extractive sectors. In July the small cap stocks fell more, while the large cap stocks fell relatively little. Although the pharmaceutical industry had a certain increase, but in view of China's imminent entry into an aging society, coupled with pharmaceutical stocks have performance support, investors are still bullish on pharmaceutical stocks, so the decline in pharmaceutical stocks is not large. And the pharmaceutical industry may follow the introduction of good, investors can still bullish pharmaceutical industry.
In the pharmaceutical sub-sector, medical devices and chemical raw materials lost the CSI 300 index. Among them, medical devices fell. The smaller decline is biological products and medical services.
On individual stocks, the top gainers were Jiangzhong Pharmaceutical, Shanghai Laishi, Kang'enbei and Zhongheng Group. In these shares, Jiangzhong Pharmaceuticals was affected by the positive impact of cross-border development finally turned, the share price rose 34.33%, listed in the list of gainers. At the same time, Shanghai Laishi by the interim net profit of 833 million, an increase of 380% year-on-year good news impact, the share price rose 30.70%, listed in the second place. In addition, Kang Enbei by the first half of the net profit increased by more than 50% year-on-year good news, the share price rose 15.06%, ranked third in the list of gainers. At the end of the list are Changshan Pharmaceutical, Jiangsu Wuzhong, Yingte Group, Xinhua Medical.
From the valuation point of view, after a sharp adjustment in the early period, the P/E ratios of various industries have declined, although the valuation of the GEM is still on the high side. The PE of defense and military stocks is relatively high, with a forecast overall method of 103.81 times and a TTM overall method PE of 168.18 times. Other TTM overall method valuations higher than the pharmaceutical and biological sectors are computer, media, machinery and equipment, general and electronics sectors. From the ranking, the valuation of pharmaceutical stocks is in the forefront. Although the pharmaceutical sector has not risen much, but the valuation is still not low. Its forecast overall method of PE is 38.66 times, from the TTM perspective, the pharmaceutical sector PE level in 51.06 times, the valuation is relatively high, relative to all A shares premium over, sub-sector valuation, the valuation of the top two is still medical services and medical devices, in addition, the valuation of higher and chemical raw materials and biological products. The lower valuation is Chinese medicine and pharmaceutical business.
At present, there are 48 A-share listed pharmaceutical companies with state-owned enterprise background, generally with resources and brand advantages, the upcoming reform of state-owned enterprises will promote enterprises to accelerate the release of business vitality. Concerned about the reform of state-owned enterprises, the first concern is the high-quality state-owned enterprises, high-quality state-owned enterprises have adapted to the fierce market competition, and the formation of the core competitiveness, the later is expected to further grow stronger. For example, Dong Ah Giao and China Resources Sanjiu. The second concern is potential SOEs, which generally have large revenues and assets, or have invisible resources, but have certain defects in corporate governance and profitability models. For example, China Resources Shuanghe. In the current context of SOE reform, investors can focus on these SOE reforms.
Yeast can be used not only to make flour and steam buns, but also to make painkillers. A study published in Science recently describes a method of producing a class of painkillers from genetically modified yeast. According to the researchers