Large group M & A strategy, the road of transformation is smooth: in order to reduce the proportion of anti-infective drugs, the company has acquired Hailisheng Pharmaceutical, Hangzhou Baoling Group, Enshi Gene and other enterprises. to create an industrial pattern covering maternal health care, child medication, gene preservation and other fields. Qianyuan Pharmaceutical achieved a total operating income of 476 million yuan in the first three quarters of 2015, an increase of 3.28 percent over the same period last year, and the net profit belonging to shareholders of listed companies was 30.29 million yuan, down 3.45 percent from the same period last year. 2015H1 urinary system drugs, health food, children's medicine business revenue and gross profit of 121 million yuan, 94.76 million yuan, respectively, revenue and gross profit accounted for 39%, 45.8%, the company has achieved business transformation.
The gross profit of the anti-infective drug business has improved steadily, and the performance of characteristic drugs in the urinary system is outstanding: the company's strategy of promoting penicillin compound preparation with high gross profit margin of minoxicillin sodium and sulbactam sodium to the hospital has been successful. The gross profit margin of the company's anti-infective drugs rose steadily to 62-65% in 2013-2014, and the sales revenue of the anti-infective drug sector stabilized at 210 million yuan in 2014. In 2014, the company's sales of urinary drugs based on tamoxin hydrochloride sustained-release capsules and fosfomycin tromethamine powder accounted for 20% of the total sales revenue, reaching 130 million yuan. Qianyuan Pharmaceutical's fosfomycin tromethamine powder market share is about 69%, the market competitive advantage is obvious.
Nuggets second child policy dividend, mergers and acquisitions into pregnant women, child health business: the company has acquired Hailisheng Pharmaceutical, Hangzhou Baoling Group, Enshi Gene and other enterprises, to create a coverage of maternal health care, children's medicine, gene preservation and other areas of industrial pattern. In 2014, Zhejiang Hailisheng Pharmaceutical and Hangzhou Baoling Group (including Hangzhou Australian Medical Baoling) achieved operating income of 230 million yuan and 174 million yuan respectively, and corresponding net profits of 17.44 million yuan and 16.18 million yuan respectively. With the implementation of the two-child policy, the company develops maternal and child health industry based on key varieties such as vitamin AD drops and Baolingyunbao oral liquid, and gene preservation and environmental pollutant detection have become new growth points.
Profit forecast and investment advice: after the completion of a series of acquisitions, the company will lay out maternal and infant health care products and technical services on the basis of the original business, and can provide pregnant women and infants with a full range of health solutions from pregnancy to infancy. It is estimated that from 2015 to 2017, the EPS of the company will be 0.23,0.26,0.31 respectively, corresponding to 148.9 times, 128.9 times and 111.1 times of PE.
Risk hints: (1) the risk of corporate governance structure; (2) the risk of product price reduction caused by fierce market competition.