The pharmaceutical sector is optimistic about 24 years, and is optimistic about opportunities for alternating performance in various main lines, such as innovation, overseas travel, improvement, and undervaluation.
The Zhitong Finance app learned that CITIC Construction Investment released a research report saying that it is optimistic about the pharmaceutical sector in '24 and is optimistic about opportunities for alternating performance in various main lines, such as innovation, overseas travel, improvement, and undervaluation. Policy expectations: purify the environment, raise standards, encourage innovation, push the industry back to basics, and achieve high-quality development. Industry expectations: The overall revenue and profit growth rate of the pharmaceutical manufacturing industry has a good comparative advantage. With the industry base digested, demand side certainty, and stable policy expectations, the bank expects the industry to achieve moderate growth in 2024.
The bank is optimistic about the future:
The main line of innovation: the best way to get through the cycle. Global liquidity is expected to improve marginally, and pricing of innovative assets is more favorable; national policies encourage the development of innovative pharmaceutical devices; and new technology drives the rapid development of the industry. The representative industry segments are innovative drugs and pharmaceutical companies. Among them, the evaluation of differentiation, clinical value, compliance commercialization capabilities, or platform capabilities is the core basis for stock selection.
The main line of overseas travel: reasonable expectations, leading companies should pay a premium. In the long run, the pharmaceutical industry is expected to leave major global companies, but investors also need to fully anticipate the challenges posed by going overseas. This must be a long-term process. The representative industry segment is innovative drug and device companies. Evaluating the international competitiveness of the company's products and teams is the core basis for stock selection. Currently, companies that are already highly competitive should be given a higher premium.
Improve the main line: grasp the pace of changes in business conditions. ① The CXO industry is fully adjusted in the early stages, and the recovery of global investment and financing is expected to drive a gradual recovery in global customer demand. ② High-value consumables companies that collect and gradually clear and build new business capabilities.
Main line of undervaluation: choose a cost-effective company. ① Traditional Chinese medicine: leading OTC brands and leading innovators of traditional Chinese medicine; ② leading pharmacy chains; ③ vaccine leaders with strong commercialization and product selection capabilities; ④ pharmaceutical distribution and comprehensive pharmaceutical companies.
Other main lines: medical services.