Kangenbei is the first state-owned enterprise in Zhejiang Province, positioned as the main platform of traditional Chinese medicine health industry in Zhejiang Province, focusing on creating a business layout with OTC and health products as the main, characteristic chemical drugs and traditional Chinese medicine as the two wings, big brands and large varieties of projects have achieved remarkable results, slimming and strong bodies focus on the main business, and issued equity incentive plans after the mixed reform has landed, significantly improving business efficiency, is at the starting point of a new round of growth cycle.
The operation and organization will be adjusted to define the main business of the healthy development of traditional Chinese medicine. Combe is an old pharmaceutical enterprise with a history of more than 50 years. With the release of Beit and the entry of state-owned assets, it has opened a new chapter of development and successively completed the divestiture of inefficient assets and the injection of high-quality assets into ITC. It has formed a "one body and two wings" business layout based on the great health of traditional Chinese medicine, strategically defined the position of becoming the main platform of traditional Chinese medicine health industry in Zhejiang Province, adhered to the strategy of big brands and varieties, and significantly improved its asset structure and management efficiency.
Self-care products business: strategic core, outstanding brand advantages. It includes two major businesses: over-the-counter drugs and health consumer goods. 1) OTC business: it has core brands such as Changyanning, Jindi and Qiankang, among which Kangnbei Changyanning is the first domestic retail brand of intestinal medicine, with sales exceeding 1 billion yuan in 2022. Jindi focuses on respiratory throat medicine, launching new varieties such as small golden flute for children, expanding to healthy consumer goods. Qianlie Kangprian tablet is the first category of prostate OTC, and new products such as Huange capsule are introduced around the prostate field to enrich the brand connotation. 2) Health consumer goods: cherish the list, give priority to Conbel brand health food, the core products include vitamin series, protein powder, calcium supplements and so on, to create the nutrition concept of the whole family.
Prescription drug business: the impact of collection has bottomed out, and innovative varieties have been listed one after another. Including characteristic prescriptions of traditional Chinese medicine and chemical drugs, chemical drugs have the advantages of integration of raw materials and preparations, speed up the pace of consistency evaluation and actively participate in national and provincial collection, and promote the selection of "barefoot" varieties to bring new increments; continuously improve the clinical evidence-based research of characteristic traditional Chinese medicine and explore the second life curve of products by entering the base drug catalogue. In 2022, the total flavonoid extract and oral patch of 1.2 kinds of traditional Chinese medicine were approved, and the innovative business ushered in the harvest time.
Prepared slices of traditional Chinese medicine: in 2022, the company acquired 66% equity in the company of prepared slices of traditional Chinese medicine university, and its market position improved rapidly. The business of prepared slices of traditional Chinese medicine ploughed deep into the Zhejiang market, and the speed of opening new hospitals was constantly increasing. At the same time, it was clear that the prepared slices of traditional Chinese medicine should be developed as a key business sector.
Profit forecast and investment suggestions: we are optimistic that the company will focus on the growth potential of the major health business of traditional Chinese medicine after the landing of the mixed reform. During the "14th five-year Plan" period, we will promote the improvement of quality and efficiency, and our profitability is expected to improve steadily. From 2023 to 2025, the company is expected to achieve revenue of 71.75 yuan 82.18 trillion yuan, an increase of 19.6% 14.5% 12.9% over the same period last year, and the net profit of 7.05%, 8.38%, 968 million yuan, an increase of 97.0%, 18.8%, 15.5%, corresponding to the PE of 18-15-13, with a "highly recommended" rating for the first time.
Risk tips: market and policy risks, intensified competition, price reduction, R & D failure, raw material price fluctuation risk and so on.