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云南白药(000538):四大事业部稳健增长 新兴业务单元深化布局

Yunnan Baiyao (000538): Steady growth of the four major divisions and deepening the layout of emerging business units

海通證券 ·  09/21/2023

Events. The company publishes its 2023 semi-annual report. In the first half of 23, the company realized operating income of 20.309 billion yuan (+ 12.73%), net profit of 2.828 billion yuan (+ 88.47%), net profit of 2.737 billion yuan (+ 65.43%), operating income of 9.797 billion yuan (+ 14.08%), net profit of 1.31 billion yuan (+ 123.51%) and net profit of 1.334 billion yuan (+ 298.52%).

Comments:

Industry and commerce have developed rapidly and their profitability has remained sound. In terms of different industries, the company's industrial sales income in the first half of the year was 7.499 billion yuan, up 7.77% from the same period last year, gross profit margin was 64.26%, down 0.43pct, commercial sales revenue was 12.772 billion yuan, up 15.97% from the same period last year, and gross profit margin was 6.01%, down 0.40pct from the same period last year.

The four major business departments are growing steadily, and the volume of multi-core categories is expanding rapidly.

1) Pharmaceutical Division: the revenue of the Pharmaceutical Division in the first half of the year was 3.852 billion yuan, an increase of 14.63% over the same period last year. Among the core products of Baiyao, the revenue of Yunnan Baiyao aerosol exceeded 900 million yuan, an increase of 18.20% over the same period last year.

The business income of cold products Pudilan anti-inflammatory tablets was over 100 million, an increase of 80% over the same period last year, the business income of Shangfengting capsule increased by 27% over the same period last year, and Huoxiang Zhengqi water, a proprietary Chinese medicine for dispelling summer heat and dampness, increased by more than 260% over the same period last year.

2) Health Division: the revenue of the Health Division in the first half of the year was 3.245 billion yuan, an increase of 0.81% over the same period last year. Yunnan Baiyao toothpaste achieved a market share of 25%, continuing to maintain the first market share in the industry. Revenue of Yangyuan green washing and care products has increased substantially by 90% compared with the same period last year. Oral care plate online and offline two-wheel drive, Yunnan Baiyao health products online channel income proportion further increased to 16%.

3) traditional Chinese Medicine Resources Division: in the first half of the year, the external revenue of the traditional Chinese Medicine Resources Division reached 879 million yuan, an increase of 21% over the same period last year, and the external revenue of the key strategic variety Panax notoginseng increased by 30%.

4) Provincial Pharmaceutical Company: the revenue of Yunnan Pharmaceutical Company in the first half of the year was 12.364 billion yuan, an increase of 13.60% over the same period last year, and the construction of regional platform was strengthened. the time from receiving orders to scheduling in Yunnan Province decreased by 35.2% compared with the same period last year. The ending balance of the provincial pharmaceutical inventory decreased by about 12% compared with the beginning of the year. The company continues to strengthen the overall supply chain management coordination, continue to improve the level of inventory management, combined with fine variety management to achieve dynamic digital inventory management.

Deepen the layout of emerging business units (BU), and continue to advance the digital strategy. The company focuses on cultivating oral smart care, precision medical beauty and Zhiyun Health New Business Unit (BU), and is committed to exploring a new business model of accurate customized comprehensive solution based on big data service background, so as to create a new performance growth point for the company.

In August 2023, the company's Intelligent Technology Business Unit (BU) was officially launched to create a global digital platform for Yunnan Baiyao. We believe that the company continues to deepen the layout of emerging business units, through digital strategy to enable traditional business development, is expected to continue to improve enterprise efficiency and business innovation.

Profit forecast: we expect the company's net profit from 2023 to 2025 to be 4.296 billion yuan, 4.796 billion yuan and 5.295 billion yuan respectively, with a growth rate of 43.1%, 11.6% and 10.4% respectively, corresponding to 2.39,2.67,2.95 yuan in EPS. The company continues to deepen the transformation of digital strategy, the brand value of traditional Chinese medicine resources continues to improve, and the core categories continue to sell. We give the company 30-35X PE in 2023, corresponding to a reasonable value range of 71.70-83.65 yuan, maintaining a "better than the market" rating.

Risk hint: the risk of cost fluctuation of traditional Chinese medicine, the impact of drug collection is intensified, the volume of core products is not as expected, and the promotion of digital strategy is not as expected.

The translation is provided by third-party software.


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