The company's Miao medicine (traditional Chinese medicine) heavyweight products are highly competitive, and the brand is deeply rooted in the hearts of the people. Guizhou bailing is the largest manufacturer of Miao medicine in China. From 2007 to 2018, the revenue end (18%) and the profit end (13.5%) maintained steady growth. In the past two years, it has been adjusted under the influence of the market environment, epidemic situation, investment enterprises, and so on, and there is a prospect of rapid growth in the future.
The company deeply ploughs the two main races of Chinese medicine cold and cardio-cerebrovascular. The main product Yindan Xinnaotong soft capsule is an exclusive seedling medicine preparation with comprehensive curative effect, which has maintained rapid growth for a long time, and its future potential is expected to reach 2 billion. Vitamin C Yinqiao tablets have strong price competitiveness, maintain a 50% market share for a long time, and the brand is deeply rooted in the hearts of the people.
Granules (Shuangyanghou Bitong, Xiaoer Chaigui antipyretic granules, etc.) and Huanghua spray have maintained rapid growth in recent years, and the production bottleneck is about to break through. Tangning Tongluo is the potential main product of the company. with the growth of covering hospitals and the deepening of hospital cooperation model, sales will grow in the future.
Equal emphasis is placed on the research and development of Miao medicine and modern medicine, Tangning Tongluo clinical progress is remarkable, the company's research and development system is complete, and equal emphasis is placed on national medicine and modern medicine. Tangning Tongluo has carried out preclinical and clinical trials in the Chinese Academy of Medical Sciences, the University of Hong Kong and 301 Hospital, and achieved good results in reducing blood sugar, protecting islet cells, safety and so on. It is expected to declare national new drugs in the future. Puyilitar has less target competition and strong anti-tumor activity.
The hospital channel covers a wide range, OTC channel and promotion ability are strong, Guizhou lark covers hospitals all over the country, the terminal promotion and channel construction ability of OTC industry is second to none, and it has strategic cooperation and coverage for most large chain retail pharmacies, with an OTC sales team of nearly 5000 people. The policy of OTC channel has strong immunity and is becoming more and more important. The company also promotes the application of Miao medicine through self-built hospitals, in-hospital cooperation, Internet hospitals and so on.
The production capacity of the company is large, and we expect to increase significantly in the future.
The production capacity of the company is among the best, and the production line has been continuously expanded in recent years, and a new 35000-ton capacity expansion project is being built in terms of extraction. We expect the production capacity of all dosage forms of the company to increase significantly in the future. Granules are expected to grow the fastest, followed by sprays, reflecting the company's product power and market demand potential.
Profit forecast and investment rating
We estimate that from 2020 to 2022, the operating income of the company will be 29.33,34.99 and 4.109 billion respectively, and the return net profit will be 2.31,3.20,418 million respectively, the corresponding EPS will be 0.16,0.23,0.30 yuan, and the corresponding PE will be 46.5,33.7 and 25.8 times, respectively. For the first time, coverage gives a "recommended" rating.
Risk tips: fierce market competition, less-than-expected R & D, foreign investment risk, etc.