Summary of the report:
The company achieved 340 million yuan in revenue in the first half of this year, an increase of 8.9% over the same period last year, and the net profit attributed to listed companies was 48.82 million yuan, an increase of 2.1% over the same period last year.
The main pharmaceutical industry is growing steadily. In the pharmaceutical industry, the company continues to deepen the reform of marketing operations and constantly improve the level of marketing management. In the first half of this year, the company's leading products Zhenyuan capsule and Xinyue capsule achieved sales revenue of 128 million yuan and 20.05 million yuan respectively, an increase of 26.94% and 27.08% respectively over the same period last year.
The acquisition of Huangfeng participates in the industry to complete the complementary technology and expand the downstream industrial chain. Huangfeng ginseng industry has 1000 mu of woodland ginseng, and the technology has passed the organic certification at home and abroad, which is well complementary with the planting technology of non-woodland ginseng certified by Yisheng Pharmaceutical Co., Ltd. (GAP). Huangfeng ginseng has an advantage in the development and sales of terminal downstream products such as ginseng food, health products and cosmetics, so that the company can improve its own industrial chain and improve the competitiveness of the industry.
The government controls supply, demand continues to expand, and ginseng prices are about to usher in spring. In 2014, the Jilin provincial government launched the "100 billion Ginseng Industry Revitalization Plan" to control the annual supply of 1000 hectares of ginseng land. on the other hand, in addition to traditional medicine, the demand for food, health products, makeup and beauty has also been gradually tapped. In the long run, the company will benefit from the price rise caused by the imbalance between supply and demand.
Profit forecast: we expect the company's 14-16-year EPS 0.30,0.37 and 0.43 yuan to give an overweight rating.
