\u3000\u3 China Vanke Co.Ltd(000002) 728 Teyi Pharmaceutical Group Co.Ltd(002728) )
Regional characteristics, towards the whole country
Teyi Pharmaceutical Group Co.Ltd(002728) is a comprehensive pharmaceutical group company integrating pharmaceutical research and development, pharmaceutical industry and pharmaceutical commerce. The core products are zhikebao tablets. The main products include skin disease Xuedu pills, xiaoerkechuanling granules, Jinguishenqi tablets, jiangtangshu pills, Pudilan anti-inflammatory tablets, Ganmaoling granules, Xuesaitong dispersible tablets, Ginkgo biloba dispersible tablets, Yixinshu granules, magnesium carbonate chewing tablets, Fengliao changweikang tablets, omeprazole enteric coated capsules, etc. The company evolved from Guangdong Taicheng Pharmaceutical Co., Ltd. and was listed on the Shenzhen stock exchange for 14 years. As a family enterprise, the Xu family directly controls nearly 50% of the shares. Xudanqing, the current chairman of the company, has long been engaged in medicine trade and other businesses with profound qualifications. Although the total revenue, net profit and gross profit margin in 2020 were greatly affected by the epidemic, since 2021, they are gradually getting rid of the impact of the epidemic and their financial situation has continued to improve.
With the help of traditional Chinese medicine to develop spring breeze, the core product zhikebao tablets will become bigger and stronger
In 2021, the policy of traditional Chinese medicine ushered in an outbreak period, and relevant heavy policies were implemented one after another. Traditional Chinese medicine industry is an important part of China Meheco Group Co.Ltd(600056) industry, with a large market scale. Among them, the prosperity of Chinese patent medicine market is obviously upward, whether in the output end, hospital end or retail end Teyi Pharmaceutical Group Co.Ltd(002728) zhikebao tablet, as the exclusive product of the company, has a long history of nearly 100 years. It has outstanding curative effect, significant effect on various types of chronic cough and low toxic and side effects. It ranks among the top five Chinese patent medicines for relieving cough and resolving phlegm in China. The gross profit margin of the product has been maintained at about 80%. According to the company’s announcement, it is estimated that 25 million boxes (about 330 million yuan) of zhikebao tablets will be sold in 2022. Under the favorable market space and competition pattern, it is expected to achieve further huge leaps.
Teyi adheres to the common development strategy of multiple varieties and actively creates a “1 + n” product line matrix
In addition to the core product zhikebao tablets, Teyi adheres to the common development strategy of multiple varieties and actively creates a “1 + n” product line matrix. “1” is the main variety of zhikebao tablets. “N”: under the background that the national industrial policy strongly supports the development of traditional Chinese medicine industry, the company plans to follow the general trend of national reform and development, and make efforts in the three directions of Chinese patent medicine, chemical medicine and chemical raw materials at the same time. Focus on the development of Chinese patent medicine varieties, and cultivate dermatosis Xuedu pill and jiangtangshu pill as major varieties after zhikebao tablet; Actively develop chemical drugs, participate in consistency evaluation, centralized procurement and hospital bidding, and increase the company’s product marketing channels. At present, 11 products of the company have passed the consistency evaluation, and other projects are being promoted as planned; At the same time, strengthen the market promotion of API and improve the market share of existing API products.
Investment advice
We expect that the company’s revenue from 2022 to 2024 will be RMB 920 / 11.3 / 1.36 billion respectively, with a year-on-year increase of 21.2% / 22.8% / 20.8% respectively, the net profit attributable to the parent company will be RMB 180 / 2.5 / 330 million respectively, with a year-on-year increase of 42.1% / 36.7% / 35.1% respectively, the corresponding EPS will be RMB 0.81/1.11/1.50, and the corresponding valuation will be 16x / 12x / 9x. For the first time, the “buy” investment rating is given.
Risk tips
Risk of policy change; Risk of drug price reduction; Operational risk.
