Jichuan Pharmaceutical (600566): Excellent platform helps brand Chinese medicine companies take off
Key points of investment: The company’s internal operations are stable, and the “wolf culture” has helped the company continue to expand. The company has been established for more than 20 years. The relevant department settings and personnel management are mature, and the core leadership has remained stable.
The company adheres to the management of “wolf culture” and is good at growing in adversity. By correctly grasping the direction of market development, relying on the exclusive agency type accompanied by Pu Dilan, Xiaoer Xiaoqiao, etc., its performance has maintained rapid growth, and it was successfully listed in 2013.Maintain rapid development, and the market scale continues to expand.
Influenza and the development of channels have promoted Pu Dilan and Pediatrica to grow further. After 18 years of high flu, the incidence of influenza is still serious this year, and the demand for antipyretic and detoxifying drugs and pediatric cold medicines has increased.
Pu Dilan oral liquid is the company’s exclusive dosage form, such type in 201724.
800 million US dollars. In the future, through the improvement of hospital and drug store coverage, replacement of traditional Chinese medicine injections, expansion of medical insurance coverage and promotion of adult departments, etc., stable growth is expected. The compound growth rate in the next three years is expected to be nearly 20%.
Xiaoer Qiaoqing Qingre Granules is recommended as a commonly used medicine for the treatment of flu. There is room for improvement 北京桑拿洗浴保健 in hospital and drug store coverage. Conversion and high gross profit of sugar-free dosage forms will further increase profitability.
Relay of second-tier breeds to ensure sustainable growth of the company’s performance The company is currently launching a number of expected products in other areas such as gynecology and digestive medicine.
Rabeprazole uses the latest proton pump inhibitor technology, and its market share in PPI inhibitors continues to expand. The company’s rabeprazole capsule market share is nearly 60%, and it is expected to maintain stable growth in the next 2-3 years; TokeThe pharmaceutical industry channel integration effect is obvious. Through the company’s sales platform, the affiliated Fuyanshu capsules have a significant volume.
In addition, scutellaria tablets and ferrous protein succinate have entered a rapid growth stage, and a number of products under development are steadily advancing.
Earnings forecast and rating are expected to be attributable to net profit of 18/19/20 respectively.
08 billion yuan, EPS is 2 respectively.
96 yuan, corresponding PE is 18/15/12 times.
The company’s performance has grown steadily, and the current industry policy influence factors have increased. It is estimated that the expected average mean value is returned. With reference to comparable companies, the company believes that the company will have a reasonable PE of 20 times in 2019 and a target price of 50 yuan.
Risk warnings 1. Sudden policies lead to major price reductions of major products; 2. Large shareholders continue to reduce their risk.