On December 22, the traditional Chinese medicine sector (bk1040) rose by 3.55%. With the continuous rise of this sector, the price rise of traditional Chinese medicine in the upper reaches of the industrial chain has become the focus of investors. According to the data of yaotong.com, as of December 22, the prices of more than 50 kinds of traditional Chinese medicine had increased by more than 100% over the same period last year, of which white lentils ranked first in the year, with a year-on-year increase of 847%.
Zheng Zhiwen, a senior analyst at yaotong.com, believes that since 2020, the prices of more and more Chinese herbal medicines have increased, some because of the reduction of seeds and prices for many years, and some have suffered natural production reduction and price increase. With the development of social economy, Chinese herbal medicines may usher in an era of high prices.
In this context, how will the listed companies of traditional Chinese medicine "see the moves"?
the price of some Chinese herbal medicines doubled in one month
According to the data of yaotong.com, as of December 22, the top three Chinese herbal medicines with annual growth were white lentils, Eclipta and raw land, with an increase of 847%, 400% and 395% respectively compared with the same period last year. In November alone, Achyranthes bidentata, Cortex Phellodendri and glutinous rice roots increased by more than 100% every month.
Hunan Fangsheng Pharmaceutical Co.Ltd(603998) the relevant person in charge told the reporter of Securities Daily: "the general rise in the price of traditional Chinese medicine this year is mainly due to the reduction in the production of some traditional Chinese medicine and the shortage of some traditional Chinese medicine due to the impact of natural disasters such as heavy rainfall in many parts of China; at the same time, the continuous rebound of the epidemic situation has increased consumers' demand for health preserving medicine and food by 40% compared with previous years."
Zheng Zhiwen further pointed out that the increase in the price of traditional Chinese medicine is related to many factors, such as the increase in planting costs, the increase in processing and collection costs, and the strengthening of quality supervision of traditional Chinese medicine. "The planting cost of Chinese medicinal materials includes seeds, chemical fertilizers, pesticides, harvesting and primary processing. Large-scale planting also requires land contracting fees and labor fees. Taking Angelica dahurica as an example, the seeds were only 10 yuan / kg - 12 yuan / kg at a low price a few years ago, and now it costs 30 yuan / kg; fertilizer is indispensable for planting medicinal materials, and compound fertilizer has increased from 60 yuan to 180 yuan now; labor fees are required for harvesting and primary processing In the past few years, the employee fee for collecting safflower is 30 yuan / kg - 40 yuan / kg, and now it has risen to 50 yuan / kg - 60 yuan / kg. "
"The introduction of the 2020 Pharmacopoeia has stricter quality requirements for traditional Chinese medicine varieties, which not only increases the planting cost, but also increases the cost of transportation, preservation and other links; the state has vigorously cracked down on the quality and safety of traditional Chinese medicine decoction pieces, forcing enterprises and growers to control the product quality in every link. All kinds of costs will be integrated, and the price flowing into the market will naturally increase." Hunan Fangsheng Pharmaceutical Co.Ltd(603998) the person in charge added.
how do relevant listed companies respond to
Facing the era of low price of traditional Chinese medicine is gone forever, how can listed companies of traditional Chinese medicine deal with the new normal of the industry?
The cost is transmitted to the downstream by raising the price, which has become the first choice for many listed companies with strong voice in the product side to deal with this wave of price rise of traditional Chinese medicine.
Beijing Tongrentang Co.Ltd(600085) announced that from December 1, the selling price of Angong Niuhuang Pill (3G * pill / box) was increased from 780 yuan to 860 yuan, an increase of about 10%. Since then, China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) also publicly said that the ex factory price of Angong Niuhuang Pill has increased this year. In an interview with the Securities Daily, Han Chenxiao, the board secretary, also said that based on the continuous rise in raw material prices and labor costs, the company is considering adopting different market price strategies for different products.
Secondly, reducing production costs from strategic reserves and process improvement is the midline strategy for some listed companies to deal with the era of high price of traditional Chinese medicine.
"On the one hand, the company continues to monitor the market and judge the price fluctuation of key bulk materials and varieties with large price fluctuation, and timely carry out strategic reserve and inventory management to reduce the risk of price fluctuation. On the other hand, the company continues to improve the product production technology level, optimize the product process and reduce the production cost." Han Chenxiao said.
The relevant person in charge of Hunan Fangsheng Pharmaceutical Co.Ltd(603998) said: "considering the pressure of downstream and terminal, the company is more cautious about price increase. At present, only some varieties have a small price increase. We usually have a strategic inventory for commonly used Chinese herbal medicines."
In addition, a number of listed companies have arranged Chinese herbal medicine bases in advance to solve the problem of rising prices of Chinese herbal medicine from the source.
Hunan Hansen Pharmaceutical Co.Ltd(002412) the relevant person in charge told the reporter of Securities Daily: "Yunnan Zhaotong Gastrodia elata base is a stable source of raw materials for yongzhitang, a subsidiary. It is also in line with the company's business philosophy of using genuine medicinal materials and using good materials to make drugs. At present, the enterprise does not have its own traditional Chinese medicine base. In case of price fluctuations, drought, flood and insect disasters, it is unable to ensure the output and quality of drugs, so it is easy to enter a passive situation. Building a base in the origin is to secure the core resources Hold it in your own hands. "
"The company has a thousand mu base in Longxi, mainly planting dangshen, angelica and Astragalus." He Yu, director of the party masses work department of Hunan Qianjin medicinal materials Co., Ltd., told the Securities Daily that at present, the company has 9 dangshen bases, 3 Astragalus bases and 2 Angelica bases, which fundamentally ensures the self-sufficiency of the company's raw materials and traditional Chinese medicinal materials.
With the popularity of the primary market of traditional Chinese medicine, the capital market has gradually paid attention to the layout opportunities of listed companies of traditional Chinese medicine. From October 28 to December 22, the biggest increase in the traditional Chinese medicine sector reached 22%.
In an interview with the reporter of Securities Daily, a pharmaceutical analyst of a securities firm believed that: "On the one hand, traditional Chinese medicine has been encouraged and supported by national policies, most of which are exclusive varieties or varieties with good competition pattern, so they are not afraid of centralized purchase. At the same time, OTC varieties have strong consumption attributes. On the other hand, affected by the rise of traditional Chinese medicine price index, listed companies of traditional Chinese medicine have product price increase or price increase expectations, and the customer unit price will be increased. In addition, the average valuation of traditional Chinese medicine is low, which is lower than that of many consumer banks Industry valuation, based on the above factors, the mainstream funds of the pharmaceutical sector may prefer the traditional Chinese medicine sector. "
(voice of Securities Daily)
