Recently, the pharmaceutical sector has continued to strengthen, while the synthetic biology, cellular immunotherapy and other sub sectors have been active. On May 8, the synthetic biological concept stock once again broke out, and many stocks rose by the limit.
In combination with the public offering products and the first quarterly reports of listed companies in 2024, many active equity funds may have gained some profits by virtue of their heavy positions in synthetic biological concept stocks, and many well-known fund managers have already distributed relevant leading stocks. Industry insiders suggest that the core competitiveness of biological manufacturing companies lies in their ability to expand and implement their products. At the same time, they should also pay attention to the fluctuations of raw material prices, the intensification of industrial competition, and the unexpected policies and markets.
Pre ambush trading stocks
On May 9, Ulan Bio released the announcement of abnormal fluctuations in stock trading. From April 26 to May 8, the stock has risen for six consecutive trading days. The stock price has recently fluctuated significantly, with a cumulative increase of 77.26%. There is an overheated market sentiment, which may lead to irrational speculation.
It is worth noting that the Dacheng strategic return mix managed by Xu Yan, a well-known fund manager of Dacheng Fund, began to hold the stock as early as 2022. From the end of 2023 to the end of the first quarter of 2024, the fund has always been one of the top ten shareholders of Ulan Bio, holding 941700 shares. Wind data shows that on May 9, the blue creatures continued to rise by the limit, and the current year's growth has reached 33.51%.
On May 6, Fuji Lai also issued a prompt announcement due to stock price changes, and the deviation value of the closing price of the stock accumulated more than 30% in two consecutive trading days on April 30 and May 6.
Similarly, Galaxy Pharmaceutical Hybrid started to hold Fujilai in 2022 at the earliest, and was one of the top ten shareholders of the stock in each reporting period since the mid report of 2022. From the end of 2023 to the end of the first quarter of 2024, the number of Fujilai shares held by Galaxy Pharmaceuticals remained unchanged at 739100 shares. As of May 9, Fujilai's share price had risen 20.42% in the year.
Inventory difference in warehouse adjustment direction
For the leading companies such as Meihua Biology, Kanghong Pharmaceutical and Puluo Pharmaceutical with relatively large market value in the concept stocks of synthetic biology, the public offering products under several well-known fund managers have also been distributed for a long time. For example, Xing Quan He Run and Xing Quan He Yi managed by Xie Zhiyu, a well-known fund manager, have started to take heavy positions in Meihua Biology and Puluo Pharmaceutical earlier. The positions of the two funds in the 2018 midterm report have already appeared in Puluo Pharmaceutical, while Meihua Biology began to appear in the 2021 midterm report.
By the end of the first quarter of 2024, Xingquan Herun and Xingquan Heyi were among the top ten shareholders of Meihua Biology, holding 114 million shares in total, 9.5235 million shares less than the end of 2023; Xingquan Herun is the ninth largest shareholder of Puluo Pharmaceutical, reducing about 17.35 million shares compared with the end of 2023. Xingquan Heyi withdrew from the top ten shareholders of Puluo Pharmaceutical. On the contrary, in the first quarter of this year, Xu Yan's management of Dacheng Ruixiang Hybrid and Dacheng Strategic Return Hybrid added nearly 5 million shares of Puluo Pharmaceutical.
In the first quarter of this year, Liu Xiao, a well-known pharmaceutical fund manager, conducted reverse operations on Kanghong Pharmaceutical through its different products: on the one hand, Hua'an ingeniously selected and mixed 376900 shares; On the other hand, Hua'an Medical Innovation Co., Ltd. increased its holdings by 109600 shares. Since February 6, the stock price of Kanghong Pharmaceutical has risen by nearly 70% as of May 9.
At the recent performance briefing, Kanghong Pharmaceutical responded to the progress of synthetic biology. The company said that KH617 for injection was a class 1 innovative chemical drug with independent intellectual property rights, which was independently developed by the company to treat patients with advanced solid tumors (including adult diffuse glioma), and it was also the first product of the company's synthetic biology platform to enter clinical trials. This project uses biosynthetic technology to produce high-purity API, and its preparations have shown good tumor inhibition effect on various solid tumors in several preclinical disease models.
In addition, the public offering products of Wan Minyuan, a well-known pharmaceutical fund manager, have long been distributed to synthetic biological concept stocks, including Puluo Pharmaceutical, Chutian Technology, and Kexing Pharmaceutical. By the end of the first quarter of 2024, the financing health industry flexible allocation mix managed by Wanminyuan held 13.3 million shares, 5.3 million shares and 1 million shares respectively. As of May 9, the above stocks have all risen by more than 10% since May.
Policy expectations inject new impetus
According to China Merchants Securities Research News, synthetic biology refers to the use of artificial synthesis methods to redesign and transform existing and naturally existing biological systems, or to create biological structures that exist or do not exist in nature through artificial methods.
Recently, the concept of synthetic biology continues to be active. On the one hand, the analysis of Haitong Securities stems from the cutting-edge technology and broad application prospects. According to the White Paper on China's Synthetic Biology Industry 2024, it is expected that the global synthetic biology market will maintain a rapid development momentum in the visible future, and will grow into a global market with a volume of nearly 50 billion dollars in 2028. On the other hand, it is expected that the policy will inject new impetus into the development of the industry.
From the perspective of industry prospects, Pan Longling, fund manager of CCB Fund, believes that the field of synthetic biology has broad prospects and potential. With the further breakthrough of biotechnology, bio manufacturing is expected to expand to mining, metallurgy, electronic information, environmental protection and other fields, becoming an important engine for economic growth. In addition, synthetic biology has also received attention and support from the national level, and policy documents related to synthetic biology have been intensively issued in many places, providing policy guarantee for the development of the industry.
Pan Longling noted that more and more excellent R&D achievements are expected to emerge in succession, and some enterprises have made significant progress. For example, Huaxi Biology has built the world's largest synthetic biology pilot scale transformation platform, which is expected to further accelerate the transformation of China's synthetic biology industry. At the same time, some enterprises have begun to use synthetic biotechnology. For example, the synthetic biotechnology innovation team of the Future Food Science Center of Jiangnan University has realized the promotion and application of hyaluronic acid in large quantities, reducing costs and promoting the development of related industries.
CITIC Securities Research News pointed out that the core competitiveness of biological manufacturing companies lies in their ability to expand and implement products. They are optimistic about having successful cases (opening up the biological manufacturing process and having the ability to implement products), leading positions (technical advantages or market synergy to increase the probability of landing new products), and high-quality product reserves (having product expansion potential and large potential market space and good pattern) As well as the target of downstream demand boom, but at the same time, we should also pay attention to the fluctuations in raw material prices, the intensification of industrial competition, and the unexpected situation in policy support, new product market development and promotion, downstream demand, etc.
