Main points of investment
The company has four major business sectors: after the company completed the acquisition of Tongjuntang and the new leading equity. At present, the company has formed four main business sectors: pharmaceutical preparation business based on traditional Chinese medicine oral liquid, traditional Chinese medicine preparation business, pharmaceutical R & D technical services and pharmaceutical business. Among them, Tongjuntang's traditional Chinese medicine business and the new leading pharmaceutical R & D business have maintained a steady development trend and have become the main source of revenue and profit for the company.
Future development plan: in the future, the company will focus on increasing support for Tongjuntang and the new leader. The company will put more resources into these two advantageous sectors, expand the scale of traditional Chinese medicine and drug research and development business as soon as possible, and achieve more sustained and stable profitability.
The company's big health products are officially on the market: in September 2015, the company's two major health products, "Shuanghua herbal tea" and "Huai yam plant beverage" have been officially put on the market. At present, these two products are first promoted and sold in Henan Province, and the market response has just been good. In the early stage, word-of-mouth marketing is the main promotion model, and the company is confident that through a certain period of time to promote the volume, these two drinks into hundreds of millions of large-scale health products.
Tongjuntang-expand the marketing network, focus on the development of Henan market: the company intends to raise 116 million yuan to invest in Tongjuntang Pharmaceutical Co., Ltd., a wholly-owned subsidiary of listed companies to expand the marketing network construction project. The construction of the fried medicine and prepared slices distribution center will be more conducive to improving the company's influence in the field of medical services, practically exploring the mode of improving the terminal value-added services of the company's whole industry chain, and enhancing the competitiveness of the company. and directly drive the company's prepared slices sales business in the region.
New leader-- to enter the clinical CRO business: the company will use the raised funds to invest 20 million yuan to build a clinical CRO project in the Deep Blue Ocean. The company plans to set up a clinical trial technical service platform and a data management center to build Beijing Deep Blue Sea Pharmaceutical Technology Development Co., Ltd. into a research team with a high degree of specialization, operation and management standards and a strong consulting team composed of domestic well-known pharmaceutical experts, extending the industrial chain of the company's CRO business plate.
Profit forecast and investment rating: we expect 2015-2018 company revenue of 1.175 billion, 1.4 billion, 1.614 billion, 1.771 billion (originally forecast for 15-17 years 1.689 billion, 1.933 billion, 2.158 billion), net profit of 0.15 billion, 93 million, 109 million, 122 million (originally forecast of 0.91 million, 110 million, 121 million) EPS 0.03,0.16,0.19,0.21 (originally predicted to be 0.16,0.19,0.21 yuan in 15-17 years), corresponding to 221.3 times, 41.5times, 34.9times and 31.6 times of PE in 2015-2016. In view of the decline in performance caused by the adjustment of the company's product line this year, it is already quite difficult to achieve the performance target of 1.689 billion yuan in operating income and 94 million yuan in net profit for the whole year. Therefore, we downgrade the company to "neutral". But we are still optimistic about the long-term development of the company in the future.
Risk tips: industry policy risk; raw material price fluctuation risk; market risk; R & D failure risk.