The industry is picking up and many pharmaceutical companies are happy with their performance.


Release time:

2012-08-29

2007 the latest developments in the pharmaceutical industry-the industry rebounded a number of pharmaceutical companies pre-happy performance.
China Economic Network recently released operating data for the pharmaceutical industry and its sub-sectors for the first five months of this year. In the first five months of this year, the revenue and total profit of the pharmaceutical industry increased by 22% and 37% year-on-year, respectively, which was better than the situation in the first two months of this year (the revenue and total profit in the first two months increased by 18% and 30% year-on-year, respectively). It is also better than the situation in the same period last year (the revenue and total profit in the first five months of 2006 increased by 21% and 8% year respectively). The analysis shows that the business situation of the pharmaceutical industry has further improved, which is fully in line with our previous judgment that the industry was at a low point in 2006 and gradually improved in 2007.
The operation of each sub-industry is satisfactory. Judging from the data of the first five months of this year, the operation of each sub-industry is also good: among them, the improvement of four sub-industries, such as chemical raw materials, is more optimistic; the revenue growth of the biopharmaceutical sub-industry is still relatively fast, but the growth of total profits has slowed down on the basis of last year's higher profits; the operation of the medical device sub-industry is similar to that of the previous two months, and still maintaining a rapid growth rate.
We forecast the results of major listed companies in mid -2007. Among the listed companies we are focusing on, those that are expected to report growth of more than 50 percent include Shuanglu Pharmaceutical (up 150 percent), Shuanghe Pharmaceutical (up 51 percent) and Huadong Pharmaceutical (up 89 percent); companies that are expected to report performance growth of 30% ~ 50% include Kehua Biology (up 45%), Dong 'e Ejiao (up 36%), Pien Tze Huang (up 31%), Qianjin Pharmaceutical (up 37%), Jiangzhong Pharmaceutical (up 31%), Hengrui Pharmaceutical (up 32%), Shanghai Pharmaceutical (up 30%), and Guobao Stock (up 41%); the companies that are expected to report 10% ~ 30% growth include Guangzhou Pharmaceutical (13% growth), Kangyuan Pharmaceutical (22% growth), Kangmei Pharmaceutical (25% growth), Huahai Pharmaceutical (13% growth), Haizheng Pharmaceutical (22% growth); companies that are expected to report growth of less than 10% include Hualan Biology (up 3%), Yunnan Baiyao (up 8%), Tongrentang (up 7%), Tianshili (up 8%) and Wandong Medical (up 9%).
Shuanghe Pharmaceuticals: The company's 1H20 performance was better than we expected. Benefiting from the medical reform and the increase in industry concentration, the company's main products, Beijing Buck No. 0 and Lifuxing, have grown at a faster rate. The half-year performance may exceed our expectations. The performance of this year is also very worth looking forward.
The company's latest issuance project has attracted much attention from the market. The company will issue no more than 40 million shares in a non-public offering, of which no more than 30 million shares will be subscribed by the major shareholder Beiyao Group. The funds raised are mainly used to purchase the real estate of Beiyao Group leased by listed companies, acquire the equity of subsidiaries of Beiyao Group, and invest in new plastic bottle infusion, plastic cap and non-PVC soft bag infusion production line projects.
As the controlling shareholder, Beijing Pharmaceutical Group is optimistic about the development of Shuanghe Pharmaceutical for a long time. It plans to increase its equity in Shuanghe Pharmaceutical by subscribing for non-public shares, which will further enhance the confidence of the general public investors in the future of Shuanghe Pharmaceutical. Of course, the additional North Pharmaceutical Group did not inject other major profitable assets into Double Crane Pharmaceuticals. In the long run, the final outcome is not yet conclusive, and while we know that there are many ideas and possibilities, we place more emphasis on the company's endogenous growth.
Sinophharm: In the first half of this year, the company's main business was still very stable: the year-on-year growth rate of revenue maintained a consistent ratio of 20% to 30%, cost control was better, and the operating conditions of subsidiaries improved, and net profit increased at More than 40%. We expect the company to maintain this growth rate throughout the year. In addition, the company recently divested the loss-making National Pharmacy, which is undoubtedly a positive for the company's performance.
The performance in the first half of this year may exceed expectations mainly due to the company's expense control and the better operation of subsidiaries.
Shanghai Pharmaceuticals: In the first half of this year, the company's sales scale and profitability have further improved. We expect its semi-annual report to increase by about 30% year-on-year.
The company announced its joint venture with Japan on May 17. Judging from our tracking, since Shanghai Lingqian Huzhong, a joint venture pharmaceutical commercial company with Japan, has not been officially listed, the investment income obtained by the joint venture is not reflected in the semi-annual report. This part of the income may be reflected from the third quarter report, which will have a greater positive impact on the annual net profit.
From the analysis of the announcement of the joint venture, we believe that the joint venture has the following positive effects on the company: ① the joint venture will bring a greater contribution to the investment income of Shanghai medicine in 2007, and the expected increase in earnings per share is about 0.13 yuan; ② The service fees agreed in the contract bring stable income to the company every year, and the expected increase in earnings per share in 2007 and 2008 is 0.01 yuan and 0.05 yuan (calculated on a quarterly basis in 2007); ③The Japanese side will introduce high-margin varieties, value-added services and distribution management technology to the joint venture. In the long run, we believe that this will promote the development of Shanghai's pharmaceutical distribution business. This information is from: Kangjia Medical Health Forum http://bbs.konjia.com.