Main points of investment:
The company has always developed around the strategic goal of "strengthening its leading position in the field of Miao medicine and striving to become an enterprise with core competitiveness in the field of proprietary Chinese medicine". At present, with the exclusive Miao medicine products Yindanxinnaotong soft capsule, Kesuting syrup and capsules and non-Miao medicine exclusive products Jingan capsule and vitamin C Yinqiao tablet as the main profitable products, it is the largest manufacturer of Miao medicine in the country.
The sales revenue of the company's star product Yindan Xinnaotong soft capsule H1 reached 242 million yuan in 2015, an increase of 16.35% over the same period last year. After Yindan was listed in the new base drug catalogue as the company's exclusive product, as the company's marketing resources actively tilted towards Yindan, Yindan's sales volume was growing steadily, growing by 13.17% in 2014 compared with the same period last year. H1 in 2015 increased by 16.35%. In the face of the current situation that the products are in short supply, the company has announced the construction of 5 billion soft capsule production line expansion plans.
Another core product that the company strives to cultivate and develop-Tangning Tongluo capsule has entered the harvest period. As a special medicine for the treatment of diabetes, Tangning Tongluo capsule received the Registration approval of Medical Institution preparation on August 27, 2014, and Guizhou Bailing traditional Chinese Medicine Diabetes Hospital received the Medical Institution practice license on December 30, 2014. The model of "hospital + preparation" has been initially formed. Since the beginning of this year, Tangning Tongluo capsule has been brought into the category of medical insurance and NCMS in Guizhou Province one after another, which has brought positive factors to the company's promotion of Tangning Tongluo capsule. At the same time, by regulating the use of Tangning Tongluo, the company has expanded the scope of use of Tangning Tongluo from its own hospitals to other hospitals in Zunyi Medical College, Guizhou staff and Workers Hospital, Guizhou Zhongjian Hospital and other provincial hospitals, broadening the sales channels of Tangning Tongluo.
The company actively cooperates with universities and other research institutions to carry out further research and development of Tangning Tongluo. The company is currently cooperating with the Institute of Medicinal plants of the Chinese Academy of Medical Sciences, the University of Hong Kong and West China Hospital of Sichuan University to carry out further research and development projects of Tangning Tongluo. At the same time, the "Modern Miao Pharmaceutical Innovation and Technology Research Institute" and the "Guizhou Modern Miao Pharmaceutical Science and Technology Innovation Fund" have been established in cooperation with Sichuan University and Guizhou University to further increase the technical support for the company's products.
Actively embrace "Internet +". In cooperation with Tencent and Guizhou Health Information Center, the company signed the "Guizhou" Internet + chronic Disease Medical Service Strategic Cooperation Agreement on May 25, 2015. And on this basis, and Tencent further signed the "lark doctor-patient management platform technical service agreement" and "blood glucose meter procurement framework agreement", through the procurement of Tencent's "Teng'ai". Sugar doctor "blood glucose meter and combined with the company's own diagnosis and treatment channels, and Tencent has established a deep cooperative relationship in the field of Internet medical treatment." In the aspect of "Internet +", in addition to cooperating with Tencent, the subsidiary Guizhou Bailing traditional Chinese Medicine Diabetes Hospital has also been listed as a telemedicine pilot unit in Guizhou Province.
Actively carry out the research and development of other new drugs. Tifentine, a 1.1 new chemical drug, has been patented in the United States, and epirubicin liposomes (powder injection) are also in the stage of preclinical research. Although new drug research and development has the characteristics of long cycle and high risk, the company actively reserves new drug varieties, which reflects the company's business philosophy of sustainable development.
Investment advice:
Under the premise of the steady growth of the company's existing core variety Yindan Xinnaotong, and regardless of the possible substantial increase in the company's performance caused by Tangning Tongluo capsule in the future, we estimate that the company's EPS in 2015 and 2016 will be 0.27,0.33 yuan, respectively, and the corresponding Pram E will be 94.51,77.33times, respectively. With the current A-share market in the traditional Chinese medicine industry with an average of 25.54 times the Pmax E level, the company's current valuation level is slightly higher. However, taking into account the contribution of Tangning Tongluo capsule, which has been sold as a hospital preparation, to the company's performance in the future, and the fact that there are many catalytic factors in the company's valuation in the future, we continue to maintain its "buy" investment rating.
Risk tips: Yindan Xinnao Tong sales growth rate is not as expected; Tangning Tongluo capsule promotion is not as expected.