Jinwu Financial News | CMB International said that since the beginning of the year, the MSCI China Healthcare Index has fallen 22.7%, outperforming the MSCI China Index by 23.3%. Looking ahead to 2024, China's pharmaceutical industry is expected to return to healthy growth as industry regulation is normalized and the impact of the COVID-19 base gradually subsides. The bank continues to be optimistic about BeiGene (06160), Cinda Biotech (01801), Columbotai (06990), Giant Biotech (02367), Gushengtang (02273), and Mindray Healthcare (300760). In addition, it is recommended to focus on high-dividend stocks with steady performance, such as Lizhu Pharmaceutical (01513), Shanghai Pharmaceuticals (02607), Sinopharm Holdings (01099), and China Resources Healthcare (01515).
According to the bank, it is expected that support policies for innovative drugs and innovative devices will continue to be strengthened. In an increasingly complex international situation, due to the important strategic importance of the innovative drugs/innovative device industry, the bank expects that the country may promote the development of the innovative pharmaceutical industry in various directions such as review and approval, medical insurance payment, commercial insurance coverage, and corporate financing.
Furthermore, industry regulation continues to show a high pressure trend, and it is expected that in-hospital demand will recover in the second half of the year. The bank believes that the industry will be strictly regulated or normalized; however, the order of diagnosis and treatment will gradually normalize, and demand for in-hospital products and services will remain healthy. For base reasons, the bank expects the industry to accelerate growth in the second half of this year.