At present, the lukewarm performance of the primary market and the volatility of the secondary market in the medical industry have had a certain impact on the medical capital environment and enterprise prices. However, due to the continuous development of medical technology and people's increasing emphasis on health, the innovative pharmaceutical field is still trusted by capital as a cross-cycle industry.
Based on the recent performance of the medical industry, General Manager Zhao Wen of the Strategic Investment Department of Huaxi Yinfeng Investment Co., Ltd. put forward several viewpoints and thoughts starting from the capital market data at the Western Hospital Management and Medical Innovation Development Conference and the Chengdu Biomedical Innovation Achievements Roadshow Sub-venue on June 21st. 01 The Industry Bears Pressure and Forges Ahead Judging from the data of the primary and secondary markets and IPOs, the industry may be in a stage of bearing pressure in the short term and still needs to consolidate the foundation and forge ahead. As shown in the following table, only a small number of enterprises in some sectors achieved profit growth, among which the innovative drug preparations and traditional Chinese medicine sectors performed relatively prominently, while the medical device, medical anti-corruption, and retail pharmacy sectors were under pressure. Regarding the 2023 IPO data, a total of 313 new shares were listed in 2023, with a financing amount of 356.4 billion yuan. Compared with the same period of the previous year, the number of new shares decreased by 26%, and the financing amount declined by 39%. Against this background, the situation of biomedical listing and financing was also not optimistic. Among them, 21 biomedical enterprises were listed on the A-share market, and the number of listings and the total amount of fundraising decreased by 57.4% and 70.15% respectively year-on-year. For the 13 biomedical companies listed on the Hong Kong stock market, although the number decreased by 43% compared to the previous year, the fundraising amount increased by 5% year-on-year. 02 Firm Confidence and a Firm Future The current hot investment tracks in the pharmaceutical field are mostly the following: synthetic biology, nuclear medicine, nucleic acid drugs, polypeptide APIs, high-end scientific instruments, and the upstream of the life science industry chain. In the investment process, it is still necessary to calmly consider the balance point of the primary and secondary markets and carefully identify the "bubbles" in the biomedical industry.
The following viewpoints may help enhance the vitality of enterprises at this stage:
First, shift the focus of enterprises.
In the current capital market, the technical concepts and growth stories of enterprises are no longer attractive. In contrast, more emphasis is placed on whether enterprises can launch more market-competitive products as soon as possible, and whether they have broad marketing channels to drive the growth of product sales, thereby achieving a substantial improvement in profitability.
Second, listing in Hong Kong may be more popular this year.
At present, more and more global capital is optimistic about China's economic fundamentals and the appreciation space of Chinese assets, leading investors to go to Hong Kong to look for high-quality investment targets. Secondly, due to the interest rate cut by the Federal Reserve within the year, this phenomenon is bound to drive more capital to return to emerging markets, thereby bringing more incremental funds to the Hong Kong IPO market. Moreover, the dividend yield of Hong Kong stocks is relatively high, and red-chip stocks with higher dividends and repurchase efforts may attract more capital attention. Finally, because the valuation of Hong Kong stocks is relatively low, the IPO valuation of related domestic enterprises is also relatively low.
