\u3000\u3000 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436)
Main points:
It is a well deserved treasure of Chinese medicine, and its performance has maintained continuous growth
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) has a development history of nearly 500 years and is famous for its excellent curative effect. Its prescription and technology are listed as state secrets and listed as the first-class protected variety of traditional Chinese medicine, which is the highest level of Chinese patent medicine protection in China. In recent years, the company’s revenue and net profit attributable to the parent company have achieved rapid growth. Especially since the “one core and two wings” strategy was put forward in 2014, the growth rate has increased significantly and the revenue structure has become increasingly rich.
Many factors drive Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) both volume and price to rise, and the supply and demand has not reached the balance point
Volume increase: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) as a traditional Chinese medicine enterprise with a history of 500 years, its medical value and health care value have been tested by time. Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) has dual consumption attributes and extends three main use scenarios. 1. Medication for liver diseases: China is a big country in liver diseases. It is estimated that the retail scale of Chinese patent medicine for liver diseases will reach 3.7 billion yuan by 2022. With Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) accounting for half of the retail end, it plays a leading role. 2. Daily health care and alcohol relief: high health care costs are targeted at high net worth people. Driven by the enhancement of health awareness and consumption upgrading of high net worth people, coupled with the laying and recommendation of experience halls, the penetration rate of high net worth people in various regions has gradually increased. Price rise: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) has a double top secret formula protected by the state, with prominent scarcity and sufficient pricing power. Under the pressure of natural raw materials, the price of natural musk increases by 436 {6006} under the price rise of natural raw materials.
The “two wings” are not just derivatives, but complement each other with Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) and expand the border
The strategic development pattern of “one core and two wings” of the company clearly points out that: “Health care drugs, health food, cosmetics with special effects and daily chemical products are the two wings. Health care drugs, health food, cosmetics with special effects and daily chemical products are the two wings of the company. Among them, one wing of cosmetics with special effects and daily chemical products has begun to flourish, providing revenue and profits for the company.
Moreover, the daily chemical and cosmetics businesses are not just derivatives, but complement and complement each other with Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) . Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) provides good formula, good story and good curative effect for the two wings; The two wings improve the awareness of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , reduce the acceptance of the crowd, and expand the boundary of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) . On the one hand, it enriches the source of income of the company. On the other hand, it gives Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) new vitality in another form with the help of traditional Chinese medicine culture. With the development of the market and the promotion of the company, the two wing business will become an important source of income and promote the further development of the company’s big health industry strategy.
Investment advice
We expect that the company’s revenue from 2021 to 2023 will be RMB 8.03/94.0/11.28 billion respectively, with a year-on-year increase of 23.3% / 17.1% / 19.9% respectively, and the net profit attributable to the parent company will be RMB 2.43/29.7/3.69 billion respectively, with a year-on-year increase of 45.6% / 22.0% / 24.3% respectively, corresponding to EPS of RMB 4.03/4.92/6.11 from 2021 to 2023, with a corresponding valuation of 89x / 73x / 59x. For the first time, the “buy” investment rating is given.
Risk tips
The company’s promotion was less than expected, the price of raw materials fluctuated, and the growth rate of daily chemical / cosmetics business was less than expected
