Low Valuation TCM Themed Healthcare Stocks

[Barefoot]

I did a research into the products of some of these protected national TCM brands. The bold-faced are in my watch list. 云南白药 and 片仔癀 are two well recognized and are already valued at more than 100 billions. The next tier which are still at rock bottom valuation with less than 10 billions valuation are obviously 中新药业, 千金药业, [b]马应龙 ,[b]康缘药业[/b][/b]etc. These still have PE ratio less than 20. Those that I have not chosen are either they already have rich valuation or that I have not researched into their products yet or that they are not even listed. 4 years ago,low valuation mass consumer companies like Gree Electric, Maotai, insurance have had a run; two years ago it was mainstream core high technology like Inspur elctronics, Fujian Starnet etc (i discussed in another thread already) that have a run. We think this sector will be the main actors going into second halve of this year.

云南白药：  云南白药系列       绝密    一级       独家     独家     50     国家驰名商标保护

片仔癀：    片仔癀          　 绝密    一级                独家            原产地标记保护

雷允上药业：    六神丸        绝密    一级                                国家级非物质文化遗产 

中新药业：    速效救心丸       机密    二级       独家     独家     32

千金药业： 妇科千金（片胶囊）  秘密    二级       独家     独家     69

沃华药业：     脑血疏          秘密                        独家            我国唯一批准脑出血药物

               心可舒                  二级                独家     

和黄药业：   麝香保心丸        秘密               独家     独家    

武汉健民：  龙牡壮骨颗粒               一级                        

             体外培育牛黄                                  独家

东阿阿胶：      阿胶                                                       国家级非物质文化遗产

天士力：    复方丹参滴丸               二级       独家     独家     72

中恒集团：  血栓通注射剂               二级       独家     独家     51 

             龟苓膏（饮料）                                                 老中华产品

马应龙：     麝香痔疮膏                           独家     独家     48      国家驰名商标保护

广州药业：消渴丸、华佗再造丸                      独家     独家     36

三九医药：   三九胃泰颗粒                         独家     独家    

            正天丸（及胶囊）                      独家     独家    共16

康恩贝：    牛黄上清胶囊                          独家     独家    

汉森制药：   缩泉胶囊                             独家     独家

金陵药业：  脉络宁注射液                          独家     独家     29

美罗药业：   伤科接骨片                           独家     独家

精华制药：   季德胜蛇药片      绝密               独家     独家     

             王氏保赤丸        秘密    二级                独家

太龙药业：   双黄连合剂                           独家     独家

人福科技：    芬太尼                              独家     独家     15

双鹤药业：    降压0号                             独家     独家     31

上海凯宝    痰热清注射液                                   独家             09年国家医保目录乙类 
康缘药业:   热毒宁注射液                                   独家             09年国家医保目录乙类
昆明制药：  血塞通冻干粉针                               2家生产            进入国家基本药物目录
太安堂：    消炎癣湿药膏                                   独家             核心产品没进医保目录
             解毒烧伤膏                                    独家            
              麒麟丸                 二级                  独家
            祛痹舒肩丸               二级

[Barefoot]

Just in case some of you are reading and notice a significant price dip in 600750. It is because the company just issued 2 shares for every 10 shares and have also just paid out a dividend of RMB 0.3 /share. Taking all these into account, this one is more than 10% up.

[Barefoot]

Today, 600993's share price rises a maximum 10% to trading stop with no apparent reasons. The sector's bull market is very much alive.

[Barefoot]

Today, 600993's share price rises a maximum 10% to trading stop with no apparent reasons. The sector's bull market is very much alive.

Today, this 400 years old brand name shot up another maximum 10% TS limit. This sector is on track for a good second half year good performance as initially expected. It has gone into cosmetic, eye/skin care cream business with its 400 years old secret chinese herbal recipe and seeing good market response.

[Barefoot]

Last Friday, even Yunnan Baiyao (000538) , the TCM behemoth that already boast a huge market cap of more than 130 billions, woke up with bang, 10% TS. Big fund is into this sector.

There are still some laggards with increasing trading volume that are worth looking into or add position at this moment. examples are 600566, 002737, 600557, 600285. 600557 was already in my watch list. I have added 600566 to my portfolio last Friday.

[Barefoot]

I would like to share that on TCM quest in modernization, it has stride out its important step. 600535's T89 (an extract of 3 TCM herbs for treating angina) is the first in the world to complete FDA double blind phase 3 clinical trial. However, due to some defects in trial data, phase 3 clinical trial may yet be conducted for the second time.

Several other TCM formula from a few other companies have also completed FDA phase 2 clinical trial.

Here I share an investor's attempt in analyzing T89 results but it is in Chinese. You may also google for T89 clinical trial at FDA's website in English language.

https://mp.weixin.qq.com/s?__biz=MzUyODA...t_redirect

[Barefoot]

Today, even 002020 which was a laggard woke up with a 9% rise. many other laggards in the sector has rose 4, 5, 6 percents today. I think this a preview of the bull market that is coming in this sector. Although, China's general stock market is in tear recently, we believe a broad base bull market is still abit slightly early. We believe that by the end of the year, this sector will be one of the best performing.

[Barefoot]

002020 is 10% TS today with many in the sector including those in my initial list rising 3-10% today. 002020 has a novel insomnia drug EVT-201 under third stage clinical trial. Unlike many insomnia drugs that come with many side effects, EVT-201 has been tested in stage 1 and stage 2 clinical trials to have very mild side effects compared to conventional drugs that we have today.

Judging from the scale and broadness that big fund has built its position since April this year, we think the sector bull market rise is only in its nascent stage.