The Era Of Great Development Of The Healthcare Industry Is Coming

Through the analysis of policy, demand, market capitalization, valuation and investment, we think the long-term investment value of the healthcare industry is significant. On the policy front, the Chinese government has a complete blueprint for health care reform. On the demand side, personal and government medical expenditures continue to grow. In terms of market capitalization, the current market capitalization growth of major domestic pharmaceutical companies is large. On the valuation side, the P / E of the healthcare sector At the historical average; on the investment side, the long-term performance of the medical index is better than the broader market, making it vulnerable to the recognition of the capital market.

Specific to the growth rate of the industry, we believe that in the next few years, the revenue of the medical segment will increase by 20% per annum and the profit growth will reach 30%. Under the condition of rapid growth of the industry, it can support the current 37 times average P / E valuation .