From January to September 2014, the company achieved an operating income of 254 million yuan, an increase of 1.85%, and a net profit of 64.36 million yuan, an increase of 1.79%. The company's products are mainly general medicine, among which the main products are: Zhike Bao tablet, Golden Chamber Shenqi tablet, Erythromycin enteric-coated tablet, Erythromycin tablet, nystatin tablet and Akafen Powder and so on. At present, the company is mainly aimed at urban communities, small and medium-sized cities, rural and other grass-roots medical markets, sales areas are mainly concentrated in South and East China with high population density.
The growth rate of operating income slowed. The company's revenue grew slowly from 305 million in 2011 to 342 million in 2013. Mainly because: 1 due to the impact of production capacity and limited resistance policy, the sales of anti-infective drugs are not good; 2 the company improved the production process of oxytetracycline tablets, but did not produce and sell oxytetracycline tablets in 2013.
Transition to high gross margin proprietary Chinese medicine products. The company actively promotes proprietary Chinese medicine products, cough and expectorant products and kidney-tonifying products account for a gradual increase in the proportion of the company's income. Among them, the sales revenue of cough tablets in 2013 was 81.21 million yuan, which is the company's largest annual sales of a single product; the Golden Chamber Shenqi tablets in 2013 sales revenue of 39.08 million yuan.
Triple advantages promote the growth of Zhike Bao tablets. The company's Zhikebao tablet belongs to a century-old brand heritage, which has a high degree of recognition in Lingnan and has a group of loyal users; at the same time, affected by the policy, it rules out the possibility of other companies imitating the product; clinical results show that Zhikebao tablet has a good curative effect; at the same time, the company set up an OTC team to promote it. In 2012, the average growth rate of the top 10 brands in the antitussive and expectorant drug market was very high, indicating the good growth of the cough and expectorant market, while the company's Zhike Bao ranked first among the top 10 brands with a growth rate of 24.4%.
Earnings forecast: we forecast that the company's earnings per share from 2014 to 2015 will be 0.82,0.85,0.91 yuan respectively. At present, the stock price is 41.76 yuan per share, and the corresponding price-to-earnings ratio is 50.95,48.91,46.03 respectively, which tends to be reasonable, so it will not be rated.