Events:
On August 19, 2023, the company released its mid-2023 report that operating income in the first half of 2023 was 39.97 billion yuan, an increase of 7.39% over the same period last year; net profit from home was 2.811 billion yuan, up 8.54% from the same period last year; and net profit from non-return was 2.599 billion yuan, up 12.96% from the same period last year. In the single quarter, 2023Q2 achieved operating income of 18.342 billion yuan, an increase of 9.95% over the same period last year, a net profit of 903 million yuan, an increase of 15.08% over the same period last year, and a net profit of 771 million yuan, an increase of 43.86% over the same period last year.
Comment
The performance growth is in line with expectations, and the four major sectors go hand in hand.
Adhere to the general tone of "seeking progress in the midst of stability", make overall efforts to do a good job in all kinds of operation and management, and all kinds of business are growing steadily. The total operating income of Danan Pharmaceutical Board was 6.311 billion yuan, an increase of 5.98% over the same period last year, of which the income of proprietary Chinese medicine was 3.757 billion yuan, up 23.04% over the same period last year, and that of chemical drugs was 2.555 billion yuan, down 11.96% from the same period last year. The main reason is that the company continues to integrate internal resources, strengthen channel thrust and terminal pull, promote marketing innovation, and increase the support and cultivation of "superstar varieties" and "potential varieties". The sales of products such as Qingkailing series, Angong Niuhuang Pill and Xiaoke Pill grew relatively fast; the income of the Great Health sector reached 7.048 billion yuan, an increase of 8.07% over the same period last year. The large business sector reached 26.215 billion yuan, an increase of 7.63% over the same period last year.
Pay close attention to the theme of "double-effect improvement" and consolidate the development foundation of Danan Pharmaceutical Plate Guangzhou Pharmaceutical, a subsidiary enterprise in Baiyunshan in 2021, became the first pilot unit of state-owned enterprise reform within Baiyunshan, and the company actively expanded the pilot scope of professional manager reform. by the end of 2022, five enterprises had tried out professional manager reform. The company pays close attention to the theme of "double effect" to promote the development of the company, and promotes the high-quality development of the company. 2023H1's gross profit margin is 20.83%, an increase of 0.13pct over the same period last year, of which the gross profit margin of Danan Pharmaceutical Plate is 51.10%, an increase of 2.68pct over the same period last year.
Adhere to "one Core and pluralism" to promote the Innovation and Development of the Great healthy Plate
2023H1, the company further enhanced the momentum of the development of the big health plate. Wang Laoji herbal tea focused on the core channels, vigorously expanded the catering channels, and continued to develop the ready-to-drink market. The subordinate Wang Laoji Da Health Company achieved an income of 6.401 billion yuan and a net profit of 1.256 billion yuan, an increase of 0.71% over the same period last year. In the second half of 2023, the company will continue to consolidate its leading position in the main business and category of herbal tea, strengthen the combined sales model of "bringing the old with the new", further broaden the market base of new products and promote product sales growth.
Profit forecast and rating
The company's business goes hand in hand, and its performance is expected to maintain steady growth. According to the results of the company's mid-2023 report, the operating income forecast for 2023-2025 is expected to maintain 771.01max 842.18max 91.609 billion yuan, and the home net profit forecast to maintain 43.83x03max max 5.329 billion yuan, maintaining the "buy" rating.
Risk tips: product concentration risk; cost increase risk; policy change risk