The market share of the national vaccine supply chain ranks first. Supply chain services include customs clearance, warehousing, delivery, invoicing, collection of receivables and other value-added services. According to the Frost & Sullivan report, the company's market share grew to 23.4% in 2009, 10.7% ahead of the second place. The operating profit of this part increased at a compound annual growth rate of 28%.
China's vaccine market is growing rapidly. The company's vaccine service focuses on II-type self-financed vaccines. Such vaccines are more expensive than class I vaccines and accounted for more than 64 per cent of China's vaccine market by value in 2009. The market for II vaccines grew at a compound annual rate of 24.4% in value terms between 2006 and 2009.
Promotion and sales services distinguish the company from other supply chain service suppliers. Promotion and sales services include advising medical practitioners on the clinical uses, benefits, side effects and other features of the company's product portfolio, organizing clinical seminars, sponsoring industry conferences and other promotional activities. The company is also the largest third-party supplier in providing promotional services to vaccine manufacturers in China, with a market share of 8.7% in 2009. The operating profit of this part grew at a compound annual growth rate of 47.6%.
The company's customers include four of the world's top five vaccine manufacturers and three of the largest domestic vaccine manufacturers. These manufacturers supplied more than 54 per cent of II vaccines sold in China in 2009.
The sales network is vast. As of December 31, 2010, the company directly covered about 97% of China's centers for disease control and prevention and 72% of urban immunization sites.
The company is the second largest third-party drug product promotion and sales service provider in China.
The company mainly provides promotion and sales to the products of the world's leading drug manufacturers, focusing on anti-infective and central nervous system drugs. The supply chain and promotional sales services of third-party pharmaceutical products grew at a compound annual growth rate of 53.8% and 86.3%, respectively.
The promotion network is huge. By the end of 2010, the company's promotion network covered more than 900tertiary hospitals (the highest-level regional hospital of the Ministry of Health) and more than 1250 secondary hospitals.
Experienced management and sales representative team. The company has two independent teams of managers and sales representatives to promote vaccine and drug products. The sales team is highly educated and experienced, and is good at mastering and promoting the clinical data of vaccine and drug products.
Short-term speculative subscription is recommended. The company is the largest vaccine distributor and promotion and sales service provider in China, leading in the growing market share of II vaccines. The company is in line with the national conditions of domestic medical demand and consumption increasing year by year, and the compound growth rate is relatively high. Goldman Sachs Group, one of the arrangers, expects Tailing's profit margins to improve further with the introduction of new products and increased economies of scale, while its profit and income will grow at a compound (adjusted) rate of 49 per cent and 26 per cent, respectively, from 2010 to 2012. According to sources, the offering price is equivalent to 17-22 times the 2011 forecast price-to-earnings ratio, and the valuation is more attractive than that of the industry.