For the recent price rise of traditional Chinese medicine products, many institutions investigate and track traditional Chinese medicine enterprises. According to the reporter of red weekly, the primary catalytic factor for the price rise of traditional Chinese medicine comes from the price rise of traditional Chinese medicine. When the price of main raw materials does not rise, traditional Chinese medicine enterprises actually have no impulse to rise.
Since December 2021, led by the price rise of Beijing Tongrentang Co.Ltd(600085) Angong Niuhuang Pill, many A-share traditional Chinese medicine enterprises such as Chongqing Taiji Industry (Group) Co.Ltd(600129) and China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) have raised the prices of their main products one after another. Behind this round of intensive price adjustment of traditional Chinese medicine enterprises, precious traditional Chinese medicine and ordinary traditional Chinese medicine are facing a completely different situation. Among them, precious traditional Chinese medicine grasps the right to raise prices, while low-cost drugs in ordinary traditional Chinese medicine also have room to raise prices, but there are some “high or low” in the middle layer.
At the market level, the share prices of the above three price raising enterprises rose one after another. The price increase expectation failed, and the share price of Pian Ziguang fluctuated at a high level and fell by the limit.
Beijing Tongrentang Co.Ltd(600085) leads the price increase of products
several pharmaceutical companies follow up
Recently, traditional Chinese medicine enterprises have set off a round of “price rise tide”. According to the incomplete combing by the reporter of red weekly, many traditional Chinese medicine enterprises, including Beijing Tongrentang Co.Ltd(600085) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , have issued product price increase notices. For example, Beijing Tongrentang Co.Ltd(600085) , the price of Angong Niuhuang Pill will be increased from 780 yuan / box to 860 yuan / box from December 1, 2021; Chongqing Taiji Industry (Group) Co.Ltd(600129) said that the ex factory price of Huoxiang Zhengqi oral liquid was increased by 12% on average; China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) said on the investor interaction platform that the ex factory price of Angong Niuhuang Pill has increased.
The reporter of red weekly noted that most of the listed companies of traditional Chinese medicine that have raised the price of their products or released the information of raising the price of their products have ushered in a significant rise in their share prices. For example, Beijing Tongrentang Co.Ltd(600085) , after the announcement of the price increase, the company’s share price hit an all-time high on December 24, 2021; Chongqing Taiji Industry (Group) Co.Ltd(600129) also rose 28.17% in the four trading days since the announcement of the price increase.
The reporter of red Weekly called Beijing Tongrentang Co.Ltd(600085) Beijing Fenglian Plaza store as a consumer and asked whether Angong Niuhuang Pill had any preferential activities. The salesperson said, “Angong Niuhuang Pill had a discount with points deducted before the price adjustment, but now it doesn’t.” For the sales of this product, the clerk said, “Angong Niuhuang Pill is still in high volume, and the price will be higher and higher in the future. After all, raw materials continue to rise and are very scarce. In addition, there are reasons for high prices.”
In addition to Beijing Tongrentang Co.Ltd(600085) producing Angong Niuhuang Pill, many traditional Chinese medicine enterprises also produce this product. The reporter inquired about the price of Yifeng Pharmacy Chain Co.Ltd(603939) Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) Angong Niuhuang Pill. At present, the price of 3G * 2 pills / box of Angong Niuhuang Pill is 298.00 yuan, which is maintained within the price fluctuation range of nearly one year. Sealand Securities Co.Ltd(000750) Zhou Xiaogang, chief of medicine, told red weekly, “the price adjustment of traditional Chinese medicine enterprises is largely affected by the price increase of upstream raw materials. In addition, after the price increase of Angong Niuhuang Pill of dual nature (natural bezoar and natural musk), unnatural Angong Niuhuang Pill products may also maintain a relatively appropriate price comparison relationship.”
Among the main raw materials of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) Angong Niuhuang Pill, there are artificial musk and cultured Niuhuang in vitro. The reporter called Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited(600332) as an ordinary investor, but the other party did not reply to the price increase of the product.
The reporter of red weekly also noted that since the fourth quarter of 2021, the market has paid more and more attention to the price rise of raw materials of traditional Chinese medicine and the price adjustment plan of traditional Chinese medicine enterprises. According to the data, since October 2021, a total of 15 traditional Chinese medicine enterprises in the two cities have obtained institutional research. Among them, many traditional Chinese medicine enterprises have been asked about the price increase or price increase plans of raw materials, such as Yunnan Baiyao Group Co.Ltd(000538) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Jiuzhitang Co.Ltd(000989) , etc.
When accepting the institutional survey on December 13, 2021, Yunnan Baiyao Group Co.Ltd(000538) said that “there is no price increase plan at present”; On December 17, Guiyang Xintian Pharmaceutical Co.Ltd(002873) said that it would prepare goods in advance according to the prediction results, and the price rise of some raw materials would not have a great impact on the company in the short term.
the price of traditional Chinese medicine rises sharply some enterprises
even if the price is increased, the cost
According to a statistical data of tiandi.com, as of December 25, 2021, the Chinese herbal medicine composite 200 index (200 constituent varieties) closed at 2710.04, up 10.28% compared with the same period in 2020. This increase is not high, but specific to the varieties of traditional Chinese medicine, the reporter found that the price increase of some traditional Chinese medicine was more than 50%, or even doubled.
Mr. Shen, the boss of a traditional Chinese medicine dealer in Bozhou, Anhui Province, told red weekly that the reasons for the rise in the price of traditional Chinese medicine mainly include labor costs, natural disasters, as well as man-made operations. The typical example is hoarding, resulting in a shortage in the market, and the price will naturally rise. Mr. Shen told reporters that the price of Angelica dahurica has doubled. In addition, raw Rehmannia glutinosa and cooked Rehmannia glutinosa have increased several times. “Even if the price increases, except for individual varieties, the sales of most of our traditional Chinese medicine varieties are relatively stable.”
The staff of a drugstore in Changying, Beijing, told red weekly, “there has been some rise in traditional Chinese medicine for clearing away heat and detoxification. In addition, such as scarce musk and bezoar, these have always been in shortage and are basically replaced by manpower.” “Due to the role of traditional Chinese medicine in the epidemic situation, the overall price of medicinal materials has increased in the past two years, and the medicinal materials related to cold, cough and fever have also increased.”
The “imbalance” in the price rise of traditional Chinese medicine has led to the recent price increase of pharmaceutical enterprises. Some have increased their income due to the price increase, and some are difficult to cover the cost of raw materials even if the product price is increased.
The reporter of red weekly learned that the main components of Chongqing Taiji Industry (Group) Co.Ltd(600129) Huoxiang Zhengqi oral liquid include Angelica dahurica, Poria cocos, Atractylodes rhizome, Pinellia ternata, tangerine peel, Magnolia officinalis, etc. most of these medicinal materials will increase in price in 2021. The reporter called Chongqing Taiji Industry (Group) Co.Ltd(600129) as an ordinary investor. The relevant person in charge of the other party’s board secretary office said, “in three years, the cost of medicinal materials, production and labor costs are rising.” The 12% price increase of Huoxiang Zhengqi oral liquid can basically cover the cost increase. “Because Huoxiang Zhengqi oral liquid itself is a low-cost drug, the price adjustment will not be limited by the policy, and the price can be raised independently.”
However, the price increase of Beijing Tongrentang Co.Ltd(600085) Angong Niuhuang Pill is still difficult to beat the increase of raw material prices. The price of natural bezoar and natural musk, the main raw materials of Angong Niuhuang Pill, has risen sharply in recent years. For example, the price of natural bezoar has increased three times in five years. At present, the price of natural bezoar has reached 550000 yuan / kg (angoo pharmaceutical city).
The reporter called Beijing Tongrentang Co.Ltd(600085) as an ordinary investor, and the relevant person in charge of the other party’s board secretary office also confirmed this. He said that the price increase of Angong Niuhuang Pill could not cover the increase of raw materials. “Because of natural bezoar and natural musk, these two important raw materials have increased greatly. The price of Angong Bezoar Pill has only increased by 10%, and the price increase has not exceeded the price increase of raw materials.”
The main raw materials of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) also include natural musk and natural bezoar. After Beijing Tongrentang Co.Ltd(600085) raised the price of Angong Niuhuang Pill, the market is also paying more attention to the price increase of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) . The last price increase of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) was in early 2020, and the ex factory price was 590 yuan / grain. However, when the reporter called Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , he did not disclose the price increase information. He only said that because the price is not only related to the cost, but also related to other factors such as the market and macro policies, there is no price increase plan for the time being.
the “price rise” in the field of traditional Chinese medicine is the norm
This is very “friendly” to valuable traditional Chinese medicine
The reporter of red weekly noted that under the background of rising prices of traditional Chinese medicine, many heavy products of traditional Chinese medicine enterprises may be under the pressure of rising raw material costs.
For example, the raw materials of Xiaoyao Pill, such as white peony, Poria cocos and mint, have increased sharply in 2021; The keel, calcined oyster and poria cocos in the main materials of Longmu Zhuanggu granules increased significantly; The contents of Atractylodes macrocephala, Angelica sinensis, Radix Paeoniae Alba and Radix Bupleuri in Niuhuang Qingxin pill increased significantly; The prices of Danpi, yam, cooked land and poria cocos in the main raw materials of Liuwei Dihuang Pill increased significantly.
Moreover, the prices of several Chinese herbal medicines have reached a new high in recent five years. The reporter of red weekly consulted the data of tiandi.com of traditional Chinese medicine. According to the data, on December 31, 2021, the price of Poria Cocos (central Ding) (Bozhou pharmaceutical market) closed at 45 yuan / kg, up 25% from 36 yuan / kg in early January 2021; The latest price of Danpi (70-80% of scraping Dan and core pulling in Anhui) was 35 yuan / kg, an increase of 75% compared with 20 yuan / kg at the beginning of 2021. The prices of these two products have reached a new high in recent five years.
At present, Jiuzhitang Co.Ltd(000989) , Tasly Pharmaceutical Group Co.Ltd(600535) , Beijing Tongrentang Co.Ltd(600085) and other Xiaoyao Pill products are on sale. According to the reporter of red weekly who visited many retail pharmacies such as Chaoyang Gate in Beijing and Beiguan in Tongzhou, these brands of Xiaoyao Pill products have no notice of price increase in the near future.
Longmu Zhuanggu Granule is one of the main products of Jianmin Pharmaceutical Group Co.Ltd(600976) . The reporter called Jianmin Pharmaceutical Group Co.Ltd(600976) , and the company said that “there is no price increase plan for the time being”.
For Liuwei Dihuang pill, at present Beijing Tongrentang Co.Ltd(600085) , Jiuzhitang Co.Ltd(000989) and other companies have such products. In the online flagship store of people’s pharmacy, the reporter learned that the price of Beijing Beijing Tongrentang Co.Ltd(600085) brand Liuwei Dihuang Pill (water honey pill) 360 pills is 78 yuan / 6 boxes. The salesperson told reporters that the product has not raised the price, has been sold according to the ex factory price, and now there is a discount.
However, Beijing Tongrentang Co.Ltd(600085) the relevant person of the board secretary office said that there is no relevant price increase information for other products except Angong Niuhuang Pill, but there may be a price increase plan in the future.
So, can the rising prices of traditional Chinese medicine continue to rise by 2022? The above manager Shen told reporters that due to multiple factors, it is not easy to predict whether the price of traditional Chinese medicine will rise in the future, “because we also need to see the variety and quality of traditional Chinese medicine, whether the origin is out of stock, the speed of sales, etc.”
However, in Zhou Xiaogang’s view, the price raising behavior in the field of traditional Chinese medicine, including traditional Chinese medicine, is similar to that in food and beverage, and may still appear one after another in the future. However, it needs to be observed in two categories. One is Beijing Tongrentang Co.Ltd(600085) , Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) OTC, which has strong pricing power; The other is OTC of common brand Chinese patent medicine, such as Huoxiang Zhengqi oral liquid of Chongqing Taiji Industry (Group) Co.Ltd(600129) . However, the price increase of the latter varieties will consider more factors such as market share and competitive products. Therefore, compared with precious Chinese patent medicine OTC, the price increase sustainability of ordinary brand products may be relatively poor.
(stock market red weekly)
