Aphid stocks abandoned, super bacteria stocks come back

Yesterday, Lier Chemicals and Sihuan Co., Ltd. released an announcement that they "bounced off" the locusts and then they fell, dropping by 5.51% and 1.99%, respectively. The “predecessor” super bacteria concept shares Rheinland, Lukang Pharmaceutical and Lianhuan Pharmaceutical led the decline in the pharmaceutical plate yesterday, and ended 3.05%, 3.12% and 3.42% respectively. It was Guangzhou Pharmaceutical Co., Ltd. and Baiyunshan A that took the super bacteria baton. After the Group announced that it would develop drugs against super bacteria, its two listed companies rose sharply, ranking the top two gainers in pharmaceutical stocks yesterday.

Lier Chemicals, Tetracyclic "Exterminator"

Lier's chemistry in the locust concept stock has experienced ice and fire for two days in the past three months. In the middle of July, Lier Chemicals hit a record 7.49% of the next week, ranking the top 50 in the two cities. The company said in the performance report that due to the fierce price war caused by new domestic competitors, adjustments were made to the prices of some products, resulting in a 9.69% drop in the gross sales rate of the main business's integrated sales.

Affected by such factors as the decline in gross margins, Lier Chemical's operating income rose 8.79% year-on-year in the first half of this year, but net profit of 414.4424 million yuan and earnings per share of 0.2074 yuan, all dropped 35.95% year-on-year. Analysts believe that Lire Chemical's actual profit margin is far from the previous assumption that profit margins for 2009 to 2012 will remain stable, and therefore it is expected that the company's profit margin will remain at a low level.

Under the guidance of the concept of locusts, Lier Chemical, which manufactures and sells "Chlorpyrifos", has reached daily limit on September 9th and 10th. Yesterday, Lier Chemical released a verification case. Its “chlorpyrifos” products were mainly targeted at rice fields and fruit tree pests. They accounted for only a small proportion of the total sales revenue, accounting for less than 3% of the total sales revenue in 2009, and the company’s original drug for chlorpyrifos. The project is still under construction. Lier Chemical believes that the recent outbreak of locusts will not have a major impact on the company's performance. Yesterday, Lier Chemicals fell 5.51%, closing at 21.93 yuan per share.

Tetracyclic Biosciences is directly indicating that the company does not produce medical products related to aphids. Although the move caused the company to lose the locust concept, the super bacteria concept still exists. A few days ago, the media reported that superbugs showed signs of expanding infection in Japan. The hospital attached to the medical department of Teikyo University in Japan was suspected of reporting a large-scale infection of super bacteria in hospitalized patients. Four-ring creatures have just been normal for a while, they will reproduce the trend of soaring. "Bounced" locusts caused investors to greatly reduce their enthusiasm for Sihuan. Yesterday, Sihuan closed at 7.37 yuan, down 1.99%.

Super bacteria stocks are again in sharp contrast with theirs. Yesterday, Guangzhou Pharmaceutical and Baiyunshan A topped the pack with 9.40% and 8.27% respectively. This is almost synchronized with the high-profile announcement of the GP Group to start research and development of anti-"super bacteria" drugs. As the two subsidiary companies of the GP Group, Guangzhou Pharmaceutical and Baiyun Mountain A naturally have "a good wind frequency".

It is reported that the research and development projects of GPHL include three major topics: the development of antibacterial properties of 10 major antibacterial and anti-inflammatory Chinese medicines such as Banlangen of Baiyun Mountain, the screening of antibacterial and anti-inflammatory Chinese medicines and Western medicine antibiotics combination drug plans, and the development of new drugs for “Chinese medicine anti-hegemony”. The first batch of investment is 50 million yuan, the purpose is "to deal with the growing number of 'super bacteria' in the world."

On the other hand, the locust concept may be transformed into the concept of Bunia virus. According to the latest news, the relevant department of China CDC has already isolated a "new type of Bunia virus" from patients. Aphids themselves are not pathogenic, and the viruses they carry and spread are the culprits of illness and death. The data show that the Buani virus causes human-like illnesses such as flu or dengue fever, hemorrhagic fever (Lift Valley fever and Crimean-Congo haemorrhagic fever, etc.) and encephalitis (Cerebritis encephalitis).

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