As China’s aging population intensifies, more attention is paid to medical care and the income level of residents increases, there is a strong demand for drugs; The continuous deepening of China’s health system reform has put pressure on the short-term operation of pharmaceutical manufacturing enterprises, and the covid-19 epidemic has differentiated the growth trend of various sub industries; However, in the long run, the pharmaceutical manufacturing industrial structure continues to be optimized and upgraded, the overall profitability and cash earning capacity of the industry are at a good level, and the credit fundamentals of the pharmaceutical manufacturing industry remain stable
China Meheco Group Co.Ltd(600056) the outlook of the manufacturing industry is stable. China integrity International believes that the overall credit quality of the industry will not change significantly in the next 12 ~ 18 months.
Abstract
As China’s aging population intensifies, more attention is paid to health care and the income level of residents increases, China Meheco Group Co.Ltd(600056) manufacturing industry revenue and profit scale continue to grow; Since 2021, with the gradual normalization of epidemic prevention and control in China, the production, operation and consumption of the industry have recovered significantly; In the long run, the rigid demand for drugs is strong, and the industry will still maintain a stable development trend.
The health care reform policy continued to be improved and extended, and the overall reform continued to maintain the tone of fee control and price reduction; Under the guidance of the policy of comprehensively encouraging innovation, the industry competition returns to the control of drug cost and the improvement of effectiveness and quality. The credit qualification of pharmaceutical manufacturing enterprises with strong R & D strength, innovation, product competitiveness and cost control ability and complete integration of research, production and marketing is maintained at a good level.
Since 2020, the differentiation of various sub industries in the pharmaceutical manufacturing industry has been obvious. Chemical agents and Chinese patent medicines have been greatly affected by covid-19 epidemic and medical insurance cost control, the profit space of generic drugs has been continuously compressed, the concentration of chemical API industry has been further improved, and the income growth rate of biological products and medical devices industry has maintained a high level.
In 2021, the profitability and cash earning ability of the pharmaceutical manufacturing industry recovered to a good level, and the level of financial leverage was relatively stable. However, in the future, under the environment of industrial intensification and product innovation and upgrading, pharmaceutical manufacturing enterprises will have high capital demand in fixed asset investment, external collection and M & A, R & D investment, or will promote the overall financial leverage level of the industry, and the risk of goodwill impairment and its impact on enterprise profits deserve attention. In addition, there is a certain differentiation in the credit level in the industry, and the profitability and operation of tail enterprises are under pressure, and attention should be paid to their short-term liquidity risk.
