Review secondary market performance.

As of the past five trading days on April 22, the pharmaceutical biotechnology sector gained 3.91 percent, the Shanghai and Shenzhen 300 Index rose 7.86%, pharmaceutical and biotech sectors underperformed the index 3.95 points, at 28 SW level in the industry rose ranked section 2. Medical equipment sub-sector rose 2.92 percent, in six two sub-sectors rose No. 5. Week or front of the main CRC Wandong, Tung Fu Long, Qianshan medicine machine, diving medical, Shandong Pharmaceutical Glass and so on.

Sector valuation and investment strategies

Medical Devices segment currently TTM earnings ratio of 90 times, compared to the Shanghai and Shenzhen 300 and the pharmaceutical and biotech sector valuation premium rates were 437% and 60%, respectively, the latest book value of 9.57 times, compared to the Shanghai and Shenzhen 300 valuation and pharmaceutical biotechnology sector premium rates were 306% and 52%, respectively. Valuation premium rates slightly last week callback.

Recently, the market research firm Research and Markets in Asia survey ranking the top 100 after the medical equipment business trends forecast released report stated that the Asian region (excluding Japan) in the medical equipment market in the coming years will be massive growth, bio-medical device market growth will exceed 10%. Projections indicate that by 2017 the Asian medical device market will reach $ 15 billion.

China's medical equipment consumption share is significantly lower than the international average, the future of the medical device industry has vast room for growth, we maintain the industry "good" rating. Stock recommendations: a strong strategic execution, set up industries in the cardiovascular healthcare platform for the whole industry chain, and actively layout telemedicine medical Dunlop; the full range of medical products, home medical equipment channel advantages, and Ali healthy development strategy diving medical cooperation; mobile medical field is currently in a more intelligent hardware leading companies Andon Health; the layout of the high-end ultrasound, POCT blood gas analyzer, POCT cardiac magnetic field was beginning to bear signs of Edan instruments.