Main points of investment:
For the first time, the overweight rating is given, with a target price of 29 yuan. It is estimated that the EPS from 2016 to 2018 will be 0.18 RMB 0.28 RMB. Based on the two valuation methods of PE and PEG, the company is given a target price of 29 yuan, corresponding to 160x PE in 2016, giving an "overweight" rating for the first time.
The production capacity has improved in an all-round way, and the performance has ushered in an inflection point. From 2013 to 2014, the company lost money for two years. In 2015, the second pharmaceutical factory successfully passed the GMP transformation and put into production, and the business income of proprietary Chinese medicine products increased significantly compared with the same period last year. In 2015, the company achieved a total operating income of 295 million yuan, an increase of 45.09% over the same period last year, and the net profit belonging to shareholders of listed companies was 22.3723 million yuan, turning losses into profits. In the context of the continuous improvement of production capacity and marketing ability, the company's performance is expected to continue to grow at a high speed.
Social health problems are highlighted, and the market demand for OTC is increasing rapidly. The increase of the elderly population, the extension of life expectancy and the increasing prevalence of sub-health phenomenon have gradually enhanced the health awareness of Chinese residents, and consumers' understanding of health has changed from passive treatment to active prevention and recuperation. Benefiting from the improvement of the prosperity of the industry, the company has a bright future.
With the support of enlightening and powerful resource capacity, the extension of science and technology plus great health can be expected. Tsinghua University and Enlightenment are rich in Internet industry resources. With the continuous penetration of the Internet into the large health industry, as the only listed pharmaceutical company in Tsinghua, the company is expected to usher in the asset injection of Internet and science and technology, or to upgrade the traditional pharmaceutical industry through epitaxial mergers and acquisitions. At the same time, with reference to the partial equity transfer of enlightening technology and the increased subscription price in the future, we believe that the company's current stock price has a high margin of safety.
Risk hint: policy risk; new capacity and marketing system construction progress is not as expected.
