The Analysis On Investment Value Of Chinese Listed Companies In Biomedical Industry

China's economic development has entered a new era,and the demand of ordinary residents for investment and financial management is increasing.In his report to the 19 th national congress of the communist party of China(CPC),general secretary Xi Jinping said that the channels of property income should be expanded.At present,the main investment targets of Chinese residents include investment real estate,stocks,bonds and various types of financial products.However,at present,the threshold of real estate investment is high,and local governments throughout the country have adopted various policies to constantly strengthen the regulation of real estate.At the same time,bond investment requires a high level of professional investment for investors,while the yield of financial products is low and rigid redemption is broken.Compared with the above investment types,stock is still one of the most important investment channels for Chinese residents.However,the development of China's capital market is still not mature,the stock market mechanisms and systems are still not sound.Speculation still prevails in China's stock market.Among stock investors,most are retail investors.In recent years,influenced by a series of macroeconomic uncertainties,such as China's macroeconomic pressure,steady economic growth and structural adjustment,and Trade friction between China and the United States,investment risks in the stock market have increased.Meanwhile,pharmaceutical stocks are favored by investors for their high growth,innovation and low elasticity of pharmaceutical products.Pharmaceutical stocks havelong been considered high value investments.In the pharmaceutical industry,biomedicine is favored by the market because of its high technical content,high growth potential and broad market prospect.Biomedical enterprises will have great investment potential by virtue of their advanced technological advantages,broad market space in the future and a series of national policies.Due to the outbreak of2019-nCoV in 2020,the pharmaceutical industry is less affected by the epidemic than other industries due to its rigid demand.In addition,with the development of2019-nCoVvaccine,the successful launch of it in the future will bring huge market value and investment value to the biomedical industry.Based on the investment value theory of listed companies and the current situation of China's biomedicine industry,this paper analyzes the factors that influence the investment value of listed companies of China's biomedicine from three aspects of macro,meso and micro by using qualitative analysis method.After that,quantitative analysis method was adopted and the factor analysis model was applied.Starting from the company's microscopic influencing factors,18 financial indicators and non-financial indicators were selected,and the index data of the three years from 2016 to 2018 were taken as sample data to construct the index evaluation system of investment value of listed biomedical companies in China.Through factor analysis,the comprehensive score of listed biomedical companies is calculated,and combined with the comprehensive ranking of them in three years,this paper tries to find out the companies with stable performance and relatively more investment value for investors.Finally,the annual return rate of Shanghai composite index is selected as the market return rate,and the effectiveness of the model is tested through comparative analysis with the market return rate of 30 stocks selected according to the comprehensive ranking.This paper through the macro environment and industry analysis to explore the strategic emerging industry of biological medicine and its future development potential and space.From the perspective of macro environment,the national policy gives strong support to the biomedicine industry,and the medical care expenditure has a large room for improvement with the increase of per capita disposable income.At the same time,rapid aging causes the demand for biomedical services to rise,andthe transformation of residents' health concept provides impetus for the sustainable development of the biomedical industry.With the continuous improvement of the medical insurance system,the demand for high-end innovative drugs will further increase.In addition,it cannot be ignored that breakthroughs in biotechnology bring innovation in biological drugs and services,and the transformation of diagnosis and treatment models brought by artificial intelligence and big data bring development opportunities to the biomedical industry.The above factors indicate that the biomedical industry will have a long-term development space and a huge product market.From the perspective of the industry,since 2000,the development of China's biomedical industry is very rapid,the scale of the biomedical market continues to expand,the total profit continued to increase.The fixed investment in biomedicine industry continues to increase while maintaining a relatively stable and high return on assets.Based on the development trend of the global pharmaceutical market and the favorable policies on the biomedical industry in China at the macro level,it is concluded that the biomedical industry in China is in its growth stage.Based on the above analysis of macro environment and industry,the biomedical industry has a good development prospect and investment value.Then,this paper selects financial indicators and non-financial indicators from the micro level of the company to build the investment value evaluation system,and uses factor analysis to obtain the comprehensive scores of listed biomedical companies in the three years from 2016 to2018,and finds out the top 30 listed companies each year.Combined with the performance of three consecutive years,it was found that nine listed companies ranked in the top 30 for three consecutive years.They are Hengrui Medicine Corporation,Tigermed Consulting Corporation,Wolwo BioPharmaceutical company,Autobio Diagnostics Corporation,Salubris Pharmaceut Corporation,Tibet Cheezheng Tibetan Medicine Company,Jafron Biomedical Company,Xinguang Pharmaceutical Corporation,Guilin Sanjin Pharmaceutical Corporation.Among them,the three listed companies,Tigermed Consulting Company,Wolwo Bio-Pharmaceutical Corporation,and Salubris Pharmaceut Corporation,have remained in the top 10 for three consecutive years.This article suggests that investors can focus on.Finally,according to the model,more than half of the stocks ranked among the top 30 in 2016,2017 and2018 outperformed the annual return rate of the Shanghai composite index in thesame period and obtained excess market return,which verified the effectiveness of factor analysis method in evaluating the investment value of listed companies.