On September 9, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (600436. SH) announced that it had received a written resignation report submitted by Chairman Pan Jie. Due to work adjustment, pan Jie resigned from the company’s director, chairman and members of special committees under the board of directors. After his resignation, pan Jie will no longer hold any position in the company, and Lin Weiqi will take over the post of chairman of the company.
Pan Jie just took over the former chairman Liu Jianshun in April this year, so he held the post of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) chairman for only eight months.
But it is not just the short term of Pan Jie’s tenure that has attracted investors’ attention.
You know, pan Jiesu was regarded by the market as a chairman who supported the price increase, but he suddenly left the market when the expectation of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ingot price increase was getting stronger and stronger.
So, can Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) still raise the price?
price increase or delay
On April 8 this year, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) announced that Mr. Liu Jianshun, the former chairman of the company, applied to the board of directors for early retirement due to personal physical reasons, and pan Jie took over the post of chairman.
Pan Jie can be called a Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) veteran. He has worked in the company for 15 years. He has successively served as a director, deputy general manager, party secretary and general manager of the company. He has also served as the chairman of Zhangzhou Jiulongjiang group (100% controlled by Zhangzhou SASAC), the controlling shareholder of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) .
Pan Jie’s return was also “warmly welcomed” by the market.
“There was a rumor that Chairman Pan would return at the end of last year, and because he wanted to return, the market thought Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) had a great possibility of raising the price, because everyone thought he was more recognized for raising the price.” An investor who has followed the company once told the reporter of science and Innovation Board daily.
It is precisely because of the expectation of Pan Jie’s return and Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) price increase that Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) share price remains strong in the overall weak environment of the pharmaceutical market this year.
At the same time, it can be seen that after pan Jie’s return, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) seems to have made repeated actions in terms of sales policy. Including the news of the market in late April, it is said that the most stringent purchase order in history will be implemented after May. Consumers will purchase 2 yuan of medicines per person per month for their purchase of ingot tablets with personal ID number and prescription. And this restriction will be implemented online and offline (Experience Hall).
Under the influence of the purchase restriction order, the sales of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) at that time suddenly became extremely tight. Consumers not only need to queue up to buy, but their prices are also rising. Although the official guidance price is still 590 yuan / tablet (pastille), the price of e-commerce platform is generally more than 1000 yuan per tablet, and the black market price is as high as 1600-1800 yuan / tablet.
Therefore, in addition to being regarded as a blow to “scalpers”, this paper purchase restriction order is also interpreted by others as a prelude to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) price increase.
It is worth mentioning that it is affected by the continuous rise in the prices of raw materials, natural musk and natural bezoar. Recently, Beijing Tongrentang Co.Ltd(600085) (600085. SH) issued a price adjustment notice to raise the double natural gold coating specification of Angong Niuhuang Pill (the main specification of Angong Niuhuang Series) from the current 780 yuan / pill to 860 yuan / pill, an increase of about 10%. The price will be implemented from December 1.
According to Beijing Tongrentang Co.Ltd(600085) insiders, “since the last price adjustment of Angong Niuhuang Pill (December 2019), the price of natural musk has increased by 94% and the price of natural bezoar has increased by 15%
Since natural musk and natural bezoar are also used as raw materials, when the news of the price increase of Beijing Tongrentang Co.Ltd(600085) Angong Bezoar Pill comes out, the market expects Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) tablets to follow up soon. For example, before and after the first two price increases of Beijing Tongrentang Co.Ltd(600085) Angong Niuhuang Pill, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) also increased the price in July 2012 and January 2020 respectively.
However, although the price increase is expected to be very strong, it has remained unchanged throughout Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) 2021, which shows the cautious price increase of the company.
“In the face of the rising prices of raw materials, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) has responded by hoarding raw materials and adding ‘moderate price increases’. Historically, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) has always been a steady and non radical price increase style, and the overall price increase trend and speed are consistent with GDP growth. Before the price increase, the company will confirm that the channel inventory level is low and there is no problem in price transmission.” A buyer who has been paying attention to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) told the reporter of science and Innovation Board daily.
According to statistics, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) generally increases the price once every two years, with a price increase range of about 10%. The data displayed by the buyer showed that the retail price of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) increased from 280 yuan / grain in 2005 to 590 yuan / grain in 2020, and the CAGR (compound annual growth rate) was 5.09%; The ex factory price increased from 140 yuan / grain in 2005 to 399 yuan / grain in 2020, with a CAGR of 7.23%, slightly faster than the growth rate of GDP.
The company’s original attitude towards price increase was cautious. Now there is no chairman who supports price increase. Can Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) still increase the price? In this regard, the buyer’s view is that ” Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) price increase may be delayed”.
behind the “willfulness” of stock price
2021 can be called the “eventful year” of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) .
In addition to the “two changes” of the chairman in one year, in July this year, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) was suddenly reduced by major shareholders, which is the first time since the company was listed for 18 years, which is very rare.
On July 21, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) announced that Zhangzhou Jiulongjiang group, the controlling shareholder of the company, plans to reduce its holdings of no more than 6033200 shares. If calculated at the closing price at that time, the market value of the reduction is as high as 3 billion yuan.
Affected by this, the previous Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) with continuous sharp rise in share price also ushered in a long lost decline. After the limit on July 22, it continued to fall sharply for three consecutive trading days, with a cumulative decline of nearly 30% in four trading days.
Affected by the news of Chairman Pan Jie’s resignation, today’s (10th) Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) share price also opened low and closed at 455 yuan / share, down 2.36%.
However, if we lengthen the cycle, we can find that although the pharmaceutical stocks are almost “what to buy and what to lose” this year, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) is another anomaly other than CXO. Since the beginning of the year, the company has gained an increase of more than 70%. The adjustment brought by the first reduction of major shareholders finally proved to be just a “golden pit”.
Why is the stock price so tenacious? “From the financial report, the company’s fundamentals are indeed OK.” Some investors said to the reporter of science and Innovation Board daily.
According to the third quarterly report, in the first three quarters of this year, the company achieved an operating revenue of 6.11 billion yuan, a year-on-year increase of 20.6%; The net profit attributable to the parent company was 2.01 billion yuan, a year-on-year increase of 51.4%; Net profit deducted from non parent company was RMB 2.01 billion, with a year-on-year increase of 51.9%. The analysis shows that the overall performance of the company greatly exceeds the market expectation.
According to public information, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) implements the great healthy development strategy of “one core and two wings”. Among them, “one core” refers to the pharmaceutical manufacturing industry with Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) drug ingot as the core; “Two wings” respectively refer to the two wings of “cosmetics, daily chemical products” and “health products and health food”. In addition, the company also expands the pharmaceutical circulation industry as a supplement.
At present, among the above business segments, the revenue of pharmaceutical manufacturing industry accounts for the highest, reaching 47.6%; Followed by the pharmaceutical circulation sector, accounting for about 40%. From the third quarterly report, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) core product Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ingot continued to grow at a high rate. During the reporting period, the income from liver disease drugs (mainly Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ) was 3 billion yuan, a year-on-year increase of 33.9%.
In addition, it is worth mentioning that because Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) price increases have always been moderate and moderate, the market generally believes that there is still some room for price increases. “From 2004 to 2020, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) price increases 19 times, the retail price rises from 325 yuan / grain to 590 yuan / grain, and the annual compound growth rate is only 3.8%, far below the inflation rate.” This is the view of many people.
At the same time, from the results of previous price increases, since Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) customers are mostly high net worth people and have low price sensitivity, the moderate price increase will not affect the growth of product sales. For example, in 2016 and 2017, Chinese prices were raised twice (within 10%), but the sales volume of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) from 2015 to 2018 still maintained an increase of more than 30%, realizing the simultaneous rise of volume and price.
In addition to Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , the “cosmetics and daily chemicals” business is also one of the highlights of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , and the proportion of revenue of this business segment is increasing year by year.
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) accelerating the development of daily chemical line is after the launch of the great healthy development strategy of “one core and two wings” in 2014. After the reconstruction of the channel system in the middle years, the growth rate of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) cosmetics revenue in 2018 and 2019 exceeded 50%, and the net profit doubled in 2018 and nearly doubled in 2019.
In 2020, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) cosmetics’ total revenue reached 611 million yuan, a year-on-year increase of 42%. In the first three quarters of this year, the revenue was 560 million yuan, a year-on-year decrease of 13.9%. However, due to the sharp year-on-year decrease of 33% in operating costs, the gross profit margin increased by 8.3% to 71.1%. The analysis predicts that with the vigorous development of online channels in the fourth quarter, the business situation of this sector will improve.
However, although the performance has been praised, the valuation differences for Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) continue, “good, but expensive”, which is likely to block out many investors.
Where will the ceiling of “Maotai in medicine” Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ? And let’s try.
(Financial Associated Press)
