Xingke Rong Medical Essentials (6833)
Company Analysis:
Xingke Rong Pharmaceutical Holdings provides integrated marketing, promotion and channel management services to overseas small and medium-sized pharmaceutical manufacturers that do not have independent marketing and promotion strength in the Chinese market. According to the Frost Sullivan report, the group is the third largest provider of marketing, promotion and channel management services in China's pharmaceutical industry by 2014 earnings, with a 6.4% market share. The Group is also the only marketing, promotion and channel management service provider for plasma pharmaceuticals in China.
The Group's services include (I) the development and implementation of marketing and promotion strategies; (ii) channel management services, including warehousing and delivery services, bidding procedures, appointment and management of distributors, and inventory management; and (iii) coordination and management of product update registration and first-time product registration.
Human serum albumin injection is the best-selling product in the group's product portfolio. It is an one-person serum albumin product produced by Okkert Fama. It is used to treat hypovolemic and hypovolemic shock, abnormally high intracranial pressure, edema and ascites. Prevent and cure hypoproteinemia and neonatal hyperbilirubinemia. Human serum albumin injection is the only human serum albumin product that can be used in premature infants. Since November 2012, the Group has become the exclusive service provider of human serum albumin injection in 24 provinces, municipalities and autonomous regions of China. In August 2015, Okkert Fama confirmed the Group's exclusive service right to supply human serum albumin injection in these areas.
Ankexin and McDonnell must be antibiotics produced by McDonald's Gump. Ankexin is used to treat bacterial infections, including respiratory tract, urinary tract, soft tissue, gynecology and obstetrics, gonorrhea and other infections, and to prevent postoperative infections. McDonald's must be used to treat bacterial infections, including lower respiratory tract, urethra, bile duct, peritoneum, skin, soft tissue, pelvic infection and septicemia. In 2014, the group added three new products, which are produced by Besti and are used to treat gallstone diseases. Tate and Essex are produced by Foskama. Tate is used to treat and prevent poisoning caused by alcohol, organophosphorus and certain groups of drugs, cell damage and liver damage caused by radiotherapy. Acetol is the only injection drug approved by the State Food and Drug Administration.
The Group entered into a cooperation agreement with Liaoning Wanjia in September 2015 and became the exclusive service provider for the seventh product Core Energy Q10 (dietary supplements) in China. Q10 contained in core energy Q10 is a necessary fat-soluble antioxidant to promote basic cellular function, especially beneficial to liver, kidney and pancreas.
The net tangible assets per share is HK $0.23-HK $0.31, with a price-to-earnings ratio of 2015 times.
Subscription suggestions:
Xing Ke Rong is a supplier of plasma products in Sichuan, with China Merchants as the exclusive sponsor, and Prestigious Leader, an investment company of Sichuan Huifeng Investment Development and Everbright Holdings (00165), as the foundation investor, with a total investment of HK $89 million, with a lock-up period of 6 months. In China's pharmaceutical market, prescription drugs + OTC is 1.3 trillion, and the medical service market is close to 2 trillion. However, under the influence of anti-corruption control and guiding the reform of drug pricing mechanism, competition in the pharmaceutical industry intensifies and profits become thinner. Pharmaceutical enterprises may experience slow growth in the coming period of time. The application price of this stock is low, there is some room for speculation, and the subscription proposal is neutral.
This equity company does not offer margin subscription.