After ending the continuous rise in the past few trading days, on October 9, more than ninety percent of the 493 stocks in the A-share pharmaceutical and biological sector fell; Those that fell by more than 10% accounted for more than 40% of the entire sector.

This round of collective rebound in pharmaceutical stocks began on September 27, and as of October 9, there are still 134 stocks whose stock prices have risen by more than 20% after resumption, accounting for nearly 30%.

Looking back at the last round of the big bull market in pharmaceutical stocks, it occurred from 2020 to 2021 during the new crown epidemic, but from 2022 onwards, the stock price of the entire sector has generally entered a correction.

In the past two years from 2022 to the present, there are still nearly seventy percent of the stock prices of pharmaceutical stocks in the pharmaceutical and biological sector that have fallen cumulatively, with a cumulative decline of more than 30%, accounting for nearly half of the entire sector 688202 002750.SZ. SH), CanSino (688185. SH), Puli Pharmaceutical (300630. SZ), Jiankai Technology (688356. SH), Proton Co., Ltd. (300363. SZ), Stellite (603520. SH), Jet Biotech (688026. SH), Novizan (688105. SH), Jindike (688670. SH), all of which fell by more than 75%.

At present, many brokerages are singing about the over-falling rebound of pharmaceutical stocks.

In the weekly report released by Great Wall Guorui Securities, the valuation of the pharmaceutical and biological industry is still at the bottom of the historical valuation, and there is a large room for valuation repair in the systematic rising market.

China Post Securities also believes in the weekly report that from the current PE (TTM) point of view, A-share medicine 32 times, Hong Kong stocks medicine 23 times, the previous continuous decline has been out of the fundamentals, the improvement of market risk appetite will accelerate the repair of the valuation of the sector.

Cinda Securities said that the review of the pharmaceutical bull market from 2014 to 2015 can be divided into 4 up and 3 down, in the first round of the rise, the pharmaceutical business rose the most (up 33.15% during the period); In the second round of rise, the pharmaceutical business rose the most (9.39% during the period); In the third round of gains, the medical services sector rose the most (up 77.9%); In the fourth round of the rise, medical devices rose the most (up 49.23%).

"In the pro-cyclical market, we can focus on investment opportunities related to medical consumption, such as medical services (terminal hospitals), offline pharmacies, consumer devices, etc. In addition, it is expected that from the second half of October, listed companies will gradually release their third quarterly reports, and they can pay attention to the stocks whose performance is expected to exceed expectations. Cinda Securities believes.

AVIC Securities said that the pharmaceutical sector has experienced a long-term correction, has been in the valuation, policy, sentiment bottoming stage, with the intensive introduction of the loose monetary policy, in the short term the sector or fully ushered in a retaliatory rebound, "innovation" and "valuation repair" or become the main keywords. In the medium term, the trend of intra-sector differentiation is obvious, and leading enterprises with strong innovation ability, outstanding core competitiveness and scale advantages will continue to benefit. Follow-up recommendations focus on: first, pharmaceutical companies with rich R&D pipeline reserves and strong commercial execution capabilities in key disease areas; the second is the leading chain pharmacy enterprises that benefit from independent diagnosis and treatment, outpatient co-ordination and market concentration; The third is the medical service industry that has both consumer and hospital needs.

Some pharmaceutical investors told the first financial reporter that in the short term, the rebound of pharmaceutical stocks can be maintained for a period of time, which is more optimistic about the innovative drug segment, the current domestic support for pharmaceutical innovation, coupled with the increasingly mature medical insurance negotiation price system, which has created a good environment for the development of the innovative drug industry, which is good for truly innovative pharmaceutical companies, but it is difficult for the current overall pharmaceutical stocks to return to the high level before 2021, because the current environment is based on the background of the new crown epidemic, and the society's attention to the pharmaceutical industry is unprecedented.

It is worth mentioning that on the evening of October 9, as of the time of the first financial reporter's press release, nine companies in the A-share pharmaceutical and biological sector have issued announcements on abnormal fluctuations in stock trading, some of which are warning of the risk of excessive stock price increases.

As Xiaofang Pharmaceutical stated in the announcement, after the company's board of directors self-examination and sent a letter to inquire about the controlling shareholder and actual controller, as of the disclosure date of this announcement, the company has no material information that should be disclosed but has not been disclosed.

Another example is Innosys, which also said that after the company's self-inspection, the company's current production and operation activities are normal. There has been no major adjustment in the market environment and industry policies, no significant fluctuations in production costs and sales, and the internal production and operation order is normal.