According to a report issued by CICC, on December 30 last year, National Healthcare Security Administration and the State Administration of traditional Chinese Medicine issued National Healthcare Security Administration's guidance on Medical Insurance supporting the inheritance and innovative Development of traditional Chinese Medicine, giving full play to the advantages of the medical security system and supporting the inheritance and innovative development of traditional Chinese medicine.
It is proposed that traditional Chinese medicine preparations, Internet Chinese medicine services, and appropriate technologies of traditional Chinese medicine should be included in the scope of health insurance, and the reform of the payment mode of Chinese medicine health insurance should be promoted. Chinese medicine medical institutions will not implement DRG payment for the time being. On the other hand, the sales of prepared pieces of traditional Chinese medicine are increased by no more than 25%, and formula particles are encouraged to be collected in various places.
China Gold Index, as of December 30 last year, the traditional Chinese medicine sector 2022 price-to-earnings ratio of 25.8 times, biomedical sector 2022 price-to-earnings ratio of 29.8 times. The bank believes that the mainland policy to encourage the development of Chinese medicine is obvious, compared with the biomedical plate as a whole, the valuation center of the traditional Chinese medicine sector has premium space.
It is recommended to pay attention to proprietary Chinese medicines, including China Resources Sanjiu (000999.SZ), Baiyunshan (00874.HK), Tongrentang (600085.SH), Tongrentang Technology (01666.HK), Tongrentang traditional Chinese Medicine (03613.HK), Dong E E Jiao (000423.SZ) and Pian Tsai Yi (600436.SH). Chinese herbal medicine (00570.HK) is recommended, and TCM service is recommended to focus on JD Health (06618.HK) and Alibaba Health Information Technology (00241.HK).