The top 10 data of traditional Chinese medicine companies in recent five years are sorted out to grasp the marginal changes
This week, we sorted out the basic financial data of traditional Chinese medicine companies in recent five years and sorted out the top 10 companies: the pattern of revenue and profit scale has been relatively stable, and the top 10 companies have little change; However, in terms of growth rate, due to the different scale and development of each company, the growth rate of the first 10 companies will change every year. Especially in terms of profit growth, the growth rate of top2 in recent five years is higher than 100%. It can be seen that there is enough elastic space in traditional Chinese medicine companies.
In terms of sales expense rate and R & D expense rate, most Chinese traditional medicine enterprises have always been “emphasizing sales and neglecting R & D”. The high sales expense rate is related to the product characteristics, and the sales expense rate of 10 companies in recent five years was basically more than 50%. However, the R & D expense rate is also slowly increasing. In the first three quarters of 2021, there were two listed Chinese medicine companies with R & D expense rate of more than 13% ( Guilin Sanjin Pharmaceutical Co.Ltd(002275) and Jiangsu Kanion Pharmaceutical Co.Ltd(600557) ).
In terms of total market value, in the past 15 years, the total market value of the top 1 Traditional Chinese medicine company has changed from a time-honored brand ( Beijing Tongrentang Co.Ltd(600085) ) of more than 6 billion yuan in 2005 to a “big white horse” ( Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ) of 237.9 billion yuan. Among them, five companies have always been in the top 10, and their market value and volume are increasing, but the ranking will fluctuate during the period, so changes are always happening.
Policies followed, re emphasizing the “3 + 3” investment clue
Our previous series of special reports emphasized that the policy drive in the second half of 2021 may only be the first step and has not been completely completed, and new policies will be introduced at the beginning of 2022 to further strengthen the factors of policy change. Focusing on the current situation, the situation of traditional Chinese medicine industry is changing, and there must be key investment clues. We also re emphasize the “3 + 3” investment clues and pay attention to the three main lines and three themes.
Three main lines: Traditional Chinese medicine brands with time-honored brands, characteristic varieties with the ability to raise prices, and undervalued targets with incentives and guarantees.
Time honored brands: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) , Beijing Tongrentang Co.Ltd(600085) , Yunnan Baiyao Group Co.Ltd(000538) , Guangyuyuan Chinese Herbal Medicine Co.Ltd(600771) etc;
Price increase: Jianmin Pharmaceutical Group Co.Ltd(600976) (covered, buy rating), Dong-E-E-Jiao Co.Ltd(000423) , Chongqing Taiji Industry (Group) Co.Ltd(600129) , Mayinglong Pharmaceutical Group Co.Ltd(600993) , Jiuzhitang Co.Ltd(000989) etc;
There are incentives: China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) (covered, buy rating), Henan Lingrui Pharmaceutical Co.Ltd(600285) , Kpc Pharmaceuticals Inc(600422) , Jiangzhong Pharmaceutical Co.Ltd(600750) , etc.
Three themes: innovation, region and industrial chain.
Innovative traditional Chinese medicine: Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Jiangsu Kanion Pharmaceutical Co.Ltd(600557) , Tasly Pharmaceutical Group Co.Ltd(600535) , Guiyang Xintian Pharmaceutical Co.Ltd(002873) , Hunan Fangsheng Pharmaceutical Co.Ltd(603998) etc.
Regional traditional Chinese medicine brands: Guizhou Sanli Pharmaceutical Co.Ltd(603439) (covered, purchase rating), Guilin Sanjin Pharmaceutical Co.Ltd(002275) , Teyi Pharmaceutical Group Co.Ltd(002728) , Inner Mongolia Furui Medical Science Co.Ltd(300049) , etc.
Traditional Chinese medicine industry chain: upstream planting and breeding industry chain + traditional Chinese medicine material inspection ( Guizhou Xinbang Pharmaceutical Co.Ltd(002390) , Shanxi Zhendong Pharmaceutical Co.Ltd(300158) , Guizhou Bailing Group Pharmaceutical Co.Ltd(002424) , Focused Photonics (Hangzhou) Inc(300203) , Beijing Labtech Instruments Co.Ltd(688056) , Shanghai Runda Medical Technology Co.Ltd(603108) , Tofflon Science And Technology Group Co.Ltd(300171) , Maider Medical Industry Equipment Co.Ltd(688310) , Truking Technology Limited(300358) ); Midstream dealers (Chinese traditional medicine, Heilongjiang Zbd Pharmaceutical Co.Ltd(603567) ); Downstream pharmacies ( Dashenlin Pharmaceutical Group Co.Ltd(603233) , Yixintang Pharmaceutical Group Co.Ltd(002727) , Yifeng Pharmacy Chain Co.Ltd(603939) , Lbx Pharmacy Chain Joint Stock Company(603883) , Yunnan Jianzhijia Health-Chain Co.Ltd(605266) , Shuyu Civilian Pharmacy Corp.Ltd(301017) ); Layout of the whole industrial chain of traditional Chinese medicine (Chinese traditional medicine, Jointown Pharmaceutical Group Co.Ltd(600998) etc.); Chinese medicine services (gushengtang, covered, buy rating)).
Market Review
This week, the pharmaceutical biological index fell 3.94%, about 1.55 percentage points lower than Shanghai and Shenzhen 300, 2.29 percentage points lower than Shanghai Composite Index, and the industry ranked 23rd in terms of rise and fall. As of Friday this week, PE (TTM, excluding negative value) in the pharmaceutical industry was 31.9 times. Among the pharmaceutical level III sub industries, three sub industry sectors rose and 10 sub industry sectors fell this week. Offline pharmacies were the sub industry with the largest increase, up 1.6%. Medical R & D outsourcing was the sub industry with the largest decline, down 11.6%. The sub industry with the highest valuation this week is the hospital, and the PE (TTM) is 85.56 times.
