The company started with cement, in the course of 50 years of development, through endogenous growth and extension expansion, has been involved in a number of industries, the company has established a cement and medicine as the leading, communications, trade as the auxiliary development strategy.
The company's pharmaceutical income is mainly contributed by the holding subsidiary Jianfeng Pharmaceutical Co., Ltd., with an income of nearly 630 million yuan in 2009, with a proportion of industrial and commercial income of 1PUR 2.4. Pharmaceutical businesses include Jinhua Pharmaceutical Company and Jianfeng Pharmacy, with an annual income contribution of 450 million yuan and a gross profit margin hovering around 4%, 5%, with a downward trend in the past two years. The pharmaceutical industry is mainly based on general medicine and OTC varieties, and the key products include cefoxime hydrochloride for antibiotic injection, paroxetine, clodipine aspartate tablets, sodium hyaluronate eye drops, sustained-release tablets of acetophenolic acid, Yufeng Ningxin dropping pills and penciclovir for injection, with an annual income contribution of 180 million to 200 million yuan.
The income of Pinnacle cement is 550 million yuan in 2009, which is mainly contributed by Hubei Daye Jianfeng cement Plant with an annual capacity of 2 million tons. In November 2010, the company increased capital to set up Jianfeng Relay cement Plant in Pu'er City, Yunnan Province, to open up the western market. Cement business brings greater performance flexibility to the company.
After nearly five years of integration, the company's loss-making business has basically been compressed or spun off, and so far the asset situation has been greatly improved, and the main business is also concentrated in the pharmaceutical and cement industries, which are a reasonable combination of cycle and non-cycle, and performance complementarity is an incomparable advantage over other companies. We believe that the most difficult time for the company is over, asset quality and profitability have changed greatly, and are in the initial stage of rapid development.
Considering the improvement of the value of the company's pharmaceutical / cement / other shareholding companies and other factors, we think that the reasonable value of the company is 4.7 billion yuan, equivalent to 13.66 yuan per share, which is nearly 20% higher than the current price of 11.4 yuan. the company's core competitive advantage is outstanding, and its profitability is gradually strengthening, so it is given an investment rating of "increasing its holdings".