\u3000\u3000 Mayinglong Pharmaceutical Group Co.Ltd(600993) (600993)
Key investment points
Investment logic: the company is a leading enterprise of Chinese patent medicine for anorectal hemorrhoids, with three core highlights: 1) the anorectal hemorrhoids drug market exceeds 5 billion yuan. The company is a leading enterprise in this field, with a high market share. The daily price of the company's products is less than 2 yuan, and there is still room for price increase; 2) Anorectal specialized hospitals operate steadily, and more than 30 anorectal diagnosis and treatment centers have been jointly built, which is expected to bring new growth; 3) The pharmaceutical business continues to explore new models and is expected to maintain steady development.
Anorectal hemorrhoids field leader, brand extension layout, great health. There are a large number of patients with hemorrhoids, and the market space of hemorrhoid drugs is broad. The market scale of hemorrhoids treatment in China has increased sharply from 3.5 billion yuan in 2016 to 5 billion yuan in 2020, with an average annual compound growth rate of 9%. It is expected that the market scale will continue to expand rapidly and reach 10.2 billion yuan in 2030. The company takes the field of anorectal and lower gastrointestinal tract as the core positioning, and has the scarcity of brand value. Mayinglong Pharmaceutical Group Co.Ltd(600993) the terminal sales volume of musk Hemorrhoid Ointment, musk hemorrhoid suppository, Zhiyanxiao tablet and other core products is in a leading position in relevant categories. Mayinglong Pharmaceutical Group Co.Ltd(600993) has occupied an absolute leading position in China's retail terminal hemorrhoids drug market for many years. In 2019, the scale of China's retail terminal hemorrhoids drug market was about 4.12 billion yuan, and the market share of the company's products was the first, more than 2 billion yuan. Mayinglong Pharmaceutical Group Co.Ltd(600993) series products have value scarcity and high market recognition. They are expected to further expand market share and have long-term growth potential under the trend of the new era of pharmaceutical retail. The price of Mayinglong Pharmaceutical Group Co.Ltd(600993) strong brand products is low, and it is expected to increase both volume and price in the future. Mayinglong Pharmaceutical Group Co.Ltd(600993) has a unique first mover advantage. With the continuous expansion of the product line and the innovation of the marketing model, the star brands of musk Hemorrhoid Ointment / suppository series still have the potential to raise prices in the future, with rapid profit growth and great certainty.
The stable operation of anorectal specialized hospital and the joint construction of anorectal diagnosis and treatment center are expected to bring new growth. As of the first half of 2021, Mayinglong Pharmaceutical Group Co.Ltd(600993) has 6 directly operated chain anorectal specialty hospitals, and the overall scale ranks among the forefront of China's anorectal chain hospitals. At the same time, the company has signed a total of 56 joint construction projects of anorectal diagnosis and treatment centers, of which 38 have been opened, in the standardization construction of anorectal specialty, training and standardization of anorectal diagnosis and treatment technology system Provide comprehensive services for county-level hospitals in terms of remote consultation of difficult diseases. It is expected that with the gradual expansion of the company's joint construction of anorectal diagnosis and treatment center, the company's medical service sector is expected to maintain steady growth.
The pharmaceutical business continues to explore new models and is expected to maintain steady development. Pharmaceutical business is the company's traditional business, which has maintained steady development. In 2020, it achieved an income of 1.17 billion yuan, a year-on-year increase of 0.7%. At present, the pharmaceutical business sector of the company integrates offline physical pharmacies, online pharmacies, pharmaceutical logistics and other businesses, transforms and upgrades from traditional drug manufacturers to anorectal health solution providers, and is expected to maintain steady growth in the future.
Profit forecast. It is expected that the growth rate of the company's net profit attributable to its parent company from 2021 to 2023 is expected to reach 15.7%. The company is a leading enterprise in the field of anorectal hemorrhoids medicine, with the first market share and strong brand strength. At the same time, the company relies on its main products to enter the field of general health. After years of training, functional cosmetics and food are expected to usher in rapid growth and is optimistic about the long-term development of the company.
Risk warning: raw material prices may fluctuate sharply, the price increase is less than expected, and the competition intensifies the risk.
