[CSI Focus].

Yunnan has introduced a policy of free vaccination of domestic HPV vaccines

The work report of the Yunnan Provincial Government lists the implementation of the "Children's Health Care and Biological Vaccine Benefiting the People Project" as one of the 10 practical things to be done in 2025, and clearly proposes to build 1 provincial-level children's medical treatment center with the level of third-level intensive treatment of children (including neonates), 5 state-level (municipal) children's emergency or intensive care departments with the level of II., and 70 county-level children's first-aid points with the level of level I and above, and establish a children's treatment network covering the whole province; In accordance with the principle of informed and voluntary, the province's eligible girls in the first year of junior high school will be vaccinated with domestic HPV vaccine free of charge.

Comments: With the development and marketing of domestic vaccines, the price of HPV vaccines in the Chinese market has been falling, which has increased the availability of vaccines for women of appropriate age and the possibility of government procurement to a certain extent. So far, more than 10 provinces across the country have introduced policies to benefit the people by providing free vaccination of domestic bivalent HPV vaccine for school-age girls. The government's policy support for HPV vaccination will further promote the increase in the vaccination rate and benefit vaccine manufacturers.

◆Among the A-share companies, Walvax Biopharma (300142) bivalent HPV vaccine was approved for marketing by the State Food and Drug Administration in March 2022. Wantai Biotech (603392) 9-valent HPV vaccine has obtained clinical approval and is carrying out clinical work as planned.

【Highlights of the News】

○ Premier Li Qiang of the State Council presided over an executive meeting of the State Council to listen to the report on optimizing the layout and construction of primary medical and health institutions. The meeting pointed out that primary medical and health institutions are the first line of defense to protect the health of the people. It is necessary to actively promote the construction of a hierarchical diagnosis and treatment system, give full play to the regulatory role of medical insurance payment and price, use telemedicine and other information means to guide patients to receive the first diagnosis at the grassroots level, promote the contracted service of family doctors, and provide residents with all-round health services throughout the life cycle.

○ The General Office of 8 departments including the Ministry of Commerce issued the "Notice on Doing a Good Job in Trade-in of Cars in 2025". In 2025, a one-time subsidy will be given to individual consumers who transfer passenger cars registered in their own names and purchase new passenger cars, with a maximum subsidy of 15,000 yuan for the purchase of new energy passenger vehicles and a maximum of 13,000 yuan for the purchase of fuel passenger vehicles.

○According to data released by the National Bureau of Statistics, preliminary calculations show that the gross domestic product (GDP) in 2024 will be 1349084 billion yuan, an increase of 5% from 2023 at constant prices. In terms of quarters, GDP grew by 5.3% year-on-year in the first quarter of 2024, 4.7% in the second quarter of 2024, 4.6% in the third quarter of 2024, and 5.4% in the fourth quarter of 2024.

○ The Ministry of Industry and Information Technology and 14 other departments recently jointly issued the "Opinions on Strengthening the Capacity Building of Emergency Communications in Extreme Scenarios". It is proposed that by 2027, emergency communications should enter the fast lane of high-quality development, key technologies for the integration of air, space, ground and sea should be innovated and breakthroughs, equipment suitable for extreme conditions should be effectively supplied, and emergency communication services should continue to be expanded. The connection between supply and demand of emergency communication should be clear and smooth, the connection and coordination between departments should be more efficient, and the emergency management of telecommunications enterprises should be reformed and accelerated.

[Sankei perspective].

Medical aesthetic consumption ushered in a small peak

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Before the Spring Festival, the medical cosmetology industry ushered in a wave of consumption peaks, and the customer flow of some institutions increased greatly before the Spring Festival, and some institutions even generated a maximum customer unit price of more than 500,000 yuan. Products with short recovery period and obvious effects, such as hyaluronic acid, youthful injections, and collagen, are the items that consumers choose more. However, the differentiation of institutions of different sizes has further intensified, and small medical aesthetic institutions have been affected by multiple factors such as the change of consumption concepts, which has increased the difficulty of operation.

Comments: Data shows that in the second half of 2024, the total consumption of medical cosmetology in the country will increase by 27.1% year-on-year, and the consumption of medical cosmetology will maintain a growth trend. At present, the medical cosmetology industry will enter a "reshuffle period", a large number of uncompetitive small and medium-sized institutions will withdraw from the market, institutional brands will accelerate integration and concentration, and the head effect will gradually become obvious. Related concept stocks include Aimeike (300896), Bloomage Biotech (688363), etc.

【Company Trends】

○ Dong'e Ejiao (000423) announced that the net profit attributable to shareholders of listed companies in 2024 is expected to be 1.5 billion yuan to 1.6 billion yuan, an increase of 30% to 39% over the same period last year.

○ Tianfu Communication (300394) released a 2024 performance forecast, and it is expected that the net profit attributable to shareholders of listed companies in 2024 will be 1.255 billion yuan - 1.401 billion yuan, an increase of 72% - 92% over the same period last year.

○ Changhong Technology (300151) released a 2024 performance forecast, and it is expected that the net profit attributable to shareholders of listed companies in 2024 will be 90 million yuan - 120 million yuan, an increase of 184.31% - 279.09% over the same period last year; The net profit after deducting non-recurring gains and losses was 67 million yuan to 97 million yuan, an increase of 250.99% to 408.16% over the same period last year. The main reasons for the increase in performance include: the continuous growth of the medical device and polymer consumables business, the commissioning of the polymer medical consumables industrial park (Zhejiang), the breakthrough of the semiconductor business and the generation of revenue, and the impact of non-recurring gains and losses on net profit.

○ Poly Development (600048) announced that it is expected to achieve a net profit attributable to the owners of the parent company of 5.016 billion yuan in 2024, a year-on-year decrease of 58.43%. The year-on-year decline in the company's total operating income was mainly due to the decline in the scale of delivery and carryover of real estate projects during the year; The year-on-year decline in the relevant profit indicators was mainly due to the decline in the carry-over scale and gross profit margin of real estate projects, as well as the company's intention to make impairment provisions for some projects in combination with the current market conditions. The net profit in the third quarter of 2024 will be 393 million yuan, and according to this calculation, the net loss in the fourth quarter of 2024 is expected to be 2.797 billion yuan.

○ According to the performance express report released by CITIC Securities (600030), the operating income in 2024 will be 63.789 billion yuan, a year-on-year increase of 6.19%; net profit attributable to shareholders of the parent company was 21.704 billion yuan, a year-on-year increase of 10.06%; Basic earnings per share was 1.41 yuan.

[Capital Tide].

○ On January 17, the net outflow of main funds in Shanghai and Shenzhen was 14.503 billion yuan. The top three sectors with net inflows of major funds were semiconductors, electronic components and fertilizers, with net inflows of 2.918 billion yuan, 516 million yuan and 474 million yuan respectively. The top three stocks with net inflows of main funds are Julun Intelligence, SMIC and ZTE, with net inflows of 1.064 billion yuan, 775 million yuan and 566 million yuan respectively.

○ Shengbang shares (300661) rose 20.00% on January 17, with a turnover of 1.877 billion yuan. According to the data of the Dragon and Tiger List, Guotai Junan Shanghai Songjiang Zhongshan East Road bought a net of 65.2312 million yuan, the special seats for Shenzhen-Hong Kong Stock Connect sold a net of 47.5081 million yuan, and the two institutions sold a net of 32.6956 million yuan.