Despite the sharp decline in the broader market yesterday, the defensive medicine sector showed signs of activity under the heavy volume limit of Jincheng Pharmaceutical (300233). As of the close, Eternal Investment (600613) daily limit, Ruikang Pharmaceutical (002589), Foci Pharmaceutical (002644) The gains were all over 4%, and over 20 stocks in the pharmaceutical sector rose against the trend.

The subsidy for medical assistance has pushed the pharmaceutical sector into a correction last week after experiencing a surge. Last week, the entire sector fell by 0.11%, outperforming the broader market by 2.07 percentage points. For individual stocks, Zuoli Pharmaceutical (300181) performed the best this week with a cumulative increase of 23.15%; Zhongzhu Holdings (600568) performed poorly, with a cumulative decrease of 12.36%. The static valuation of the pharmaceutical and biotechnology industry is 30.59 times, and the valuation has slightly recovered from the previous week, but it is still at a historically high level.

Yesterday, on the secondary market, Jincheng Pharmaceutical and Eternal Investment rose higher in early trading yesterday, accelerated after 10:00, and quickly closed to daily limit, reporting 12.21 yuan and 15.77 yuan respectively. Other pharmaceutical stocks were boosted by this boost, with shares in Foci Medicine, Tian Lishi, and Shuanglu Pharmaceutical (002038) rising to varying degrees. It is worth noting that close to the close, Jincheng Pharmaceuticals suffered large orders to flee, once a weak open limit, closing the limit to close the limit has been consumed very little, there are also chips to choose to flee at the end of the game.

Public trading information shows that the daily limit of Jincheng Pharmaceutical was completely a hot money investee, and there was no one in the Longhu List. Changjiang Securities Co., Ltd. Foshan Pu'er Second Road Securities Sales Department was the first to buy at the daily limit and the purchase amount was as high as 11.76 million.

Decision direction of the financial report Guotai Junan Securities analyst Li Qiushi believes that after the pharmaceutical stocks rose sharply, they will face the middle report time window. The good performance of the first-tier companies' mid-term report will help stabilize market confidence, and the next wave will be even more lasting. If the trend rises, if some important representative companies have lower-than-expected results, they will have a certain impact on market sentiment.

In terms of industry segmentation, this person believes that it is recommended to focus on growth backbones whose performance continues to grow rapidly: Tasly (600535), Hengrui Pharmaceutical (600276), East China Pharmaceutical (000963); our definition of a borderless expansion industry company will continue To maintain a growth rate much higher than the industry, it is recommended to pay attention to: Kangmei Pharmaceutical (600518), Ercon Pharmaceutical (300267), Hongri Pharmaceutical (300026); meanwhile, we recommend to pay attention to the turning point of performance: Zhongxin Pharmaceutical (600329) HTC Hi-Tech (002144).

Guodu Securities believes that last week was affected by the systematic decline in the broader market, the industry slightly recovered but still outperformed the broader market, and the defensive characteristics continued to show. The top gainers were mainly low-valuation stocks and second-line stocks with high-yield growth. The major declines were mainly due to stocks that had gained too much in the previous period. Since the beginning of June, the trend of the industry has been relatively strong. Although the market has been slightly repeated, the upward trend has been established. The mid-quarter season is coming. It may be possible to pay attention to the results ahead of schedule.