Summary of the report:
Company profile: double-track operation of medicine and pesticide, which is in the critical period of transformation.
The company is mainly engaged in pharmaceuticals, pesticides and API business, and its strategic focus has gradually shifted to health care since 2015. The company has carried out a series of layouts in the field of large health, successively acquired German Rheinland Hospital, Zhenen Hospital, Swiss Biology and Life Origin, and expanded its business to the field of rehabilitation and anti-tumor.
Industry analysis: the market of medicine and pesticide is leading in the industry, and the prospect of rehabilitation is optimistic.
Huabang Pharmaceutical, a subsidiary, is the leader of skin medicine, with the fourth market share. The company's tuberculosis products cover first-and second-line treatments, ranking second in market share. Pesticide income industry ranks second, with good growth. The domestic rehabilitation market is in short supply, with a scale of 20 billion yuan, and the company is actively laying it out.
Pharmaceutical preparations: to achieve efficient coordination of production and marketing through integration
Huabang Pharmaceutical and Parkson Pharmaceutical can fully realize the sharing of marketing channels and regional complementarity in the pharmaceutical field, laying the foundation for future development and performance growth. The sales of the exclusive product Denide Cream is expected to be about 250 million yuan in 2015. in addition, a number of important new varieties are expected to be on the market this year, bringing considerable profits.
Medical and health: rehabilitation projects continue to land, and the health industry is advancing steadily.
The company is vigorously implementing the "Great China Health and Medical Alliance", focusing on the layout of rehabilitation medicine, as well as in anti-tumor therapy, Internet medical platform, medical cosmetology and other fields. The company will gradually achieve "medicine" and "medical" dual-engine-driven situation, performance will also be further improved.
Pesticides and API: Yingtai Biology benefits from policy support, Hanjiang Pharmaceutical Co., Ltd. "domestic sales + Export" to develop comprehensive pesticide plate subsidiary Yingtai Biological R & D capability is outstanding, and overseas channel advantages are obvious. and the policy direction of beneficiary countries to develop "large-scale, multi-variety" pesticide enterprises will get more rare development opportunities. Hanjiang Pharmaceutical Co., Ltd., a subsidiary of API plate, has a reasonable product structure, and its products are exported to more than 40 countries and regions, such as Europe and the United States, Asia-Pacific, Australia and so on.
Investment strategies and suggestions
We are optimistic about the company's layout and development in the field of health care, as well as the company's leading position in skin and tuberculosis medications. We expect the company's EPS to be RMB 0.32,0.39,0.49 in 2015-2017, and maintain a "highly recommended" rating corresponding to PE of 31,26,20.
Risk hint
The progress of rehabilitation projects is lower than expected and national policy changes.