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【东方证券】英特集团:软硬件实力较强,力争区域领先

東方證券 ·  May 3, 2011 00:00  · Researches

The study concluded that the region has strong advantages, and the main business is growing rapidly. Intel Group is one of the leading pharmaceutical business enterprises in Zhejiang Province. The company completed the restructuring of Kaidi Silk in 2001, invested in Inter Pharmaceutical's assets, and is mainly engaged in pharmaceutical business. Over the next 10 years, along with the rapid growth of the hospital drug market in Zhejiang Province, Intel Group's revenue and profit both showed rapid growth. In 2003-2010, Intel Group achieved a compound increase in operating income of more than 20%. In particular, since 2007, the company's growth rate has accelerated markedly; the compound growth rate of total profit from 2003-2010 has exceeded 30%. Both endogenesis and extension will be a strategy for the company's growth. Our analysis believes that at present, competition in the industry is becoming more and more intense, and integration in the domestic pharmaceutical distribution sector will continue; leading regional enterprises are also partial integrators. As a pharmaceutical distribution enterprise with rich heritage, Intel Group has a competitive advantage in Zhejiang Province; its sales network coverage is extensive and the professional logistics base is strong. These competitive advantages are expected to guarantee the company's relatively rapid endogenous growth. Epitaxial expansion has also become an important strategy for the company's development. Since last year, the company has completed a number of provincial acquisitions and has further extended its own sales network. It is expected that the company will continue to adopt an epitaxial development strategy in the future. The Group's support and financial strength will also affect the development of pharmaceutical distribution companies. Our analysis believes that in the context of a fiercely competitive industry in the pharmaceutical distribution field, the strength of the group's support and the company's financial strength have a great influence on the competitive advantage of pharmaceutical distribution companies. The expansion and endogenous growth of pharmaceutical distribution companies both require greater financial support. In the current financial tightening environment, capital strength will undoubtedly play an important role in the company's strategic development. The Intel Group completed the auction of its subsidiary Intel Properties for around 450 million yuan this year, enhancing the company's financial strength. Our analysis believes that the company is one of the leading pharmaceutical distribution enterprises in Zhejiang Province. It has strong sales network accumulation and strong logistics infrastructure support in Zhejiang Province, and the business prospects are good; in the current trend of integration in the pharmaceutical business sector, continuous expansion and strength should become the final choice in the game. In its 2010 annual report, the company also stated that with “becoming the largest pharmaceutical distribution enterprise in Zhejiang Province and entering the top ten in the country” and “becoming the best professional pharmaceutical distribution and logistics provider in China,” its strategy for vigorously developing its main business is clear. Currently, the company's stock price has risen quite a bit, and factors other than at the management level are difficult to grasp, so we will keep an eye on it.

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