The index compilation highlights the characteristics of the industry. Most of the sample space for the four major pharmaceutical indices with sufficient components comes from sample stocks in the China Securities Full Index, China Securities 800, and the Shanghai and Shenzhen 300 Index. The base date for each index is December 31, 2004, and there is a wealth of historical data for investors to refer to. In terms of quantitative restrictions, 800 pharmaceuticals (000933.SH) and 300 pharmaceuticals (000913.SH) each correspond to all securities belonging to the medical and health care industry within the sample space, and the rest of the indices have quantitative limits. Judging from the historical quantity of components in each index, it all indicates that pharmaceuticals (000991.SH) are rich in ingredients at the end of each year, but recently it has fluctuated greatly. The number of components in the remaining index fluctuated relatively steadily. Among them, the quantity of 800 pharmaceuticals (000933.SH) ingredients was relatively high (about 50-90), and the overall quantity did not fluctuate much.
Focus on the major medical industry and take into account the balanced allocation of sub-industries
Judging from the distribution of primary industries, the four major pharmaceutical indices all weigh more than 90% in the medical industry. Judging from the healthcare industry, which accounts for a relatively large weight (there is only one first-level industry under the primary health care industry in the Yangtze River: healthcare industry), the first-level industry in the Yangtze River has four secondary industry categories under healthcare: medical services, medical devices II, pharmaceutical distribution and retail, and pharmaceuticals. Taken together, it only indicates that pharmaceuticals (000991.SH) and 800 pharmaceuticals (000933.SH) have a fairly balanced configuration in each sub-industry.
Balanced Market Value Style Balances Value and Flexibility
Judging from the market capitalization distribution, it all indicates that the allocation style of Pharmaceutical (000991.SH) and China Securities Healthcare (399989.SZ) is biased towards small to medium market capitalization; the allocation style of 300 Pharmaceuticals (000913.SH) favors leading stocks with large market capitalization. The 800 Pharmaceuticals (000933.SH) Index has a balanced distribution in most market capitalization ranges, and the style is balanced and stable.
The valuation of the index is low, and the investment value is relatively prominent
Judging from the historical price-earnings ratio range, the price-earnings ratio of all pharmaceutical indices has now fallen back to near a historic low. The margin of safety is sufficient, the valuation of pharmaceutical indices is already attractive, and the investment value is relatively prominent. Among them, 800 pharmaceuticals (000933.SH) and 300 pharmaceuticals (000913.SH) indices currently have historical quantiles of less than 4%, valuations are relatively low, and investment value is relatively high.
High dividends highlight value attributes
The dividend rate of 800 Pharmaceuticals (000933.SH) and the Full Index Pharmaceutical (000991.SH) Index in the past five years is above 63% among individual stocks in the industry. They have the characteristics of high dividends over a long period of time, and are more valuable and stable. The ranking of dividend yield percentages for the rest of the indices changed greatly, and the dividend style continued to change.
Future growth space for the pharmaceutical segment
From the beginning of the “722 storm” in 2015, to the subsequent marketing license holder system (MAH), priority approval and review, national health insurance negotiations (including simple contract renewal), etc., have given birth to a vibrant scene in the domestic innovative drug market. Looking back in 2023, the domestic pharmaceutical sector is undergoing silent changes. Under the four-dimensional resonance of “policy+technology+overseas+demand”, the pharmaceutical sector has ushered in a new growth cycle.
Huitianfu China Securities Healthcare ETF
The Huitianfu China Securities Healthcare ETF (159929) closely tracks the target index, seeking to minimize tracking deviations and tracking errors.
Risk warning
1. The fundamentals and policies of the industry have changed unexpectedly;
2. Quantitative simulation calculation does not guarantee actual benefits.