1. Performance:
The company released its quarterly report for 2017 and reported revenue of about 159755000 yuan in the current quarter, up about 12.34 percent from about 142213000 yuan in the same period last year. Of the income, about 109017000 yuan comes from the production and sale of drugs, accounting for about 68.24% of the income; about 50738000 yuan comes from the purchase and sale of drugs and health food, accounting for about 31.76% of the income. The net profit was 11.95 million yuan, an increase of 19% over the same period last year. The company has Haiwang Fuyao, Haiwang Changjian and other subsidiaries.
The main source of income is Haiwang Fu Medicine (including its subsidiary) Haiwang Changjian, whose main varieties are cardiovascular drugs, tumor drugs, traditional Chinese medicine, large infusion, basic drugs and so on.
2. The performance continues to improve:
The company achieved a net profit of 62.69 million yuan in 2016, an increase of 197.8% over the same period last year. After strategic adjustments in 2015 and 2016, including the sale of loss-making subsidiaries, the company's fundamentals have improved in an all-round way. The company's operation has continued to improve this year, with operating profits in 2017. Both the profit after the period and the profit attributable to the owners have increased steadily.
3. Hai Wang Changjian
At present, Hai Wang Changjian's ginkgo biloba sales are also the company's main sales products. After the domestic ginkgo biloba incident in 2015, the company's ginkgo biloba product sales have gradually recovered in 2016, showing a good sales growth trend. The sales of large and medium-sized pharmaceutical chains in China have also continued to grow steadily in recent years.
4. Amaranth berberine:
The company has an exclusive variety of traditional Chinese medicine amaranth berberine, the curative effect is very good, can quickly relieve pain and diarrhea, in the current controlled use of antibiotics, this product as a traditional Chinese medicine product can become a good alternative product, and the side effects are far less than antibiotics.
5. Tijiao tablets have definite curative effect.
Due to the delay in bidding in most provinces and regions, sales of the national three new antineoplastic drugs Tijiao tablets have not increased significantly. This quarter, the Geo film won the second prize of the 2016 Fuzhou Science and Technology Progress Award awarded by the Fuyaozhou Municipal people's Government.
Tegio is an oral anticancer agent of fluorouracil derivatives, which includes tegafur, gem and otelaxi. It is the only compound oral preparation that simulates the effect of intravenous drip. At present, the indication of Tijiao tablets is for advanced or metastatic gastric cancer.
6. It takes time to promote Tijiao tablets:
Tigio is the fastest growing oncology drug, with the current market size estimated by sample hospitals at 2 billion. Tigio is currently in the category B health insurance catalogue, and there are four production enterprises, and their respective shares in 2012 are: Hengrui Pharmaceutical 18.5%, Qilu Pharmaceutical 9.92%, Dapeng Pharmaceutical 15.4%, Shandong New era 60% (first imitation). At present, most of the market is in the form of capsules, and the company's Tijiao tablets have certain bidding advantages. Giorgio tablets are listed in the tender catalogue in some provinces. In the long run, there are broad prospects, but it takes a certain amount of time to cultivate the market.
7. Sales expense rate:
Because after the implementation of the one-ticket system of drug circulation in Fujian Province, manufacturing enterprises can directly sell some drugs to terminal medical institutions, the sales volume and gross profit margin of some of the company's products have increased, and the sales expenses have also increased accordingly.
The sales expense rate in the first quarter of 2017 was 26.06%, up slightly from 24.34% in the same period last year. The net interest rate maintained an upward trend of 8.9%, up from 8.32% in the same period last year.
8. Summary and suggestions:
The company operates steadily, and there are bright spots in the product line, especially with the promotion of bidding, the future growth space is broad, and the development prospect of the company is promising. The current valuation is 10 times, it is recommended to pay active attention.