Kunpeng Project
Produced by |Bullet Finance.
Author |Meng Xiangna.
Edit |Hu Fangjie.
American Editor |Qianqian.
Audit |Ode.
"Viagra" in the left hand, Wang Laoji in the right hand, holding these two cash cows, Baiyun Mountain is far ahead in terms of revenue among listed Chinese medicine companies. In the first three quarters of 2023, Baiyunshan will have a revenue of 581With a performance of 8.5 billion, it ranks first among 69 listed Chinese medicine companies.
Although the revenue scale is large, Baiyunshan's net profit margin is only 675%。In terms of market capitalization, it is also inferior to similar companies. is also the "Three Musketeers" in the field of traditional Chinese medicine FMCG, Pien Tze Huang's market value has already exceeded 100 billion, followed by Yunnan Baiyao, with a market value of more than 80 billion, but Baiyun Mountain is still hovering around 50 billion.
As the culmination of the southern style of traditional Chinese medicine, Baiyunshan has 12 time-honored pharmaceutical companies in China, including Chen Liji Pharmaceutical Factory, Zhongyi Pharmaceutical, Pan Gaoshou Pharmaceutical, Jingxiutang Pharmaceutical, etc., of which 10 are century-old enterprises, and have the most time-honored brands among the "Three Musketeers" in the field of traditional Chinese medicine FMCG.
Baiyunshan, which holds the most time-honored brands and ranks first in terms of revenue scale, why is its revenue rising and its market value falling?
The full name of Baiyunshan is Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd., which was established in 1997, when it was established by 8 traditional Chinese medicine manufacturing enterprises and 3 pharmaceutical enterprises under Guangzhou Pharmaceutical Group after the reorganization, and landed in the capital market in 2001. At present, the major shareholder is Guangzhou Pharmaceutical Group, holding 4504%, the actual controller is the people of Guangzhou**.
Since its establishment, Baiyun Mountain has undergone two transformations. In 2011, Baiyunshan began to lay out the big health industry, and with the help of its well-known brand "Wanglaoji", it began to produce non-pharmaceutical health products such as herbal tea, turtle jelly, and throat lozenges. This transformation was undoubtedly a success, with Baiyunshan's revenue of 120 in 2012600 million yuan, a year-on-year increase of 122%, and the net profit attributable to the parent company was 72.9 billion yuan, a year-on-year increase of 154%.
After two years of rapid growth, Baiyun Mountain's growth began to slow down from 2014 to 2017. Since then, Baiyun Mountain has begun its second transformation.
In 2018, Baiyunshan acquired a 30% stake in Guangzhou Pharmaceutical in cash, making it an 80%-owned subsidiary. Due to the entry of Guangzhou Pharmaceutical Company, the large commercial sector (pharmaceutical circulation business) has become the "pillar" of Baiyunshan's revenue. In addition, it acquired Wanglaoji Pharmaceutical4805% of the shares, Wanglaoji Pharmaceutical then became a 96% holding subsidiary of Baiyunshan.
The results of the acquisition were evident in that year. In 2018, Baiyunshan's revenue and net profit attributable to the parent company were 422300 million yuan, 34400 million yuan, a year-on-year increase.
But the results of this reform did not last long. Baiyunshan's performance growth has begun to slow down since 2019, and in 2020, revenue and net profit attributable to the parent company both declined. Since 2021, Baiyunshan's performance has entered a period of slow growth, with a significant decline compared with 2018. In the first three quarters of 2022 and 2023, Baiyunshan's performance growth rate will fall to single digits.
Specifically, in the first three quarters of 2023, Baiyunshan's revenue and net profit attributable to the parent company will be 58.2 billion yuan and 3.8 billion yuan respectively, only a slight increase year-on-year. From the perspective of a single quarter, in the third quarter, Baiyunshan's revenue was 18.2 billion yuan, a slight increase of 3 year-on-year58%, down 07%。
Compared with Pien Tze Huang and Yunnan Baiyao, the performance growth rate of both is also higher than that of Baiyun Mountain. In the first three quarters of 2023, Pien Tze Huang's revenue and net profit attributable to the parent company will be 7.6 billion yuan and 24 billion yuan respectively0.5 billion yuan, a year-on-year increase. Yunnan Baiyao's revenue and net profit attributable to the parent company were 29.7 billion yuan and 4.1 billion yuan respectively, a year-on-year increase.
So, why can't Baiyun Mountain rise?
Through continuous mergers and acquisitions, Baiyunshan has formed four major business segments: Great Southern Pharmaceutical (pharmaceutical manufacturing business), Great Health (beverages, health care products, etc.), Large Commerce (pharmaceutical circulation business) and Great Medical.
Among them, the main products of the Danan medicine sector include traditional Chinese medicine products Banlangen granules series, Xiaochaihu granules, Xia Sangju series, Huatuo reconstituted pills, etc., chemical drugs cefixime series, sildenafil citrate (trade name Jinge) and amoxicillin, etcThe main products of the big health sector include Wanglaoji herbal tea, Tingningji series, Lixiaoji series, throat lozenges, turtle jelly, etcThe large commercial segment is mainly engaged in the wholesale and retail business of pharmaceutical circulation, and the retail business is carried out through terminals such as "Jianmin" pharmaceutical chain stores, Guangzhou Pharmaceutical Pharmacy chain stores and Guangzhou Pharmaceutical Chenfei Pharmacy, and the production and sales of Chinese herbal medicines and Chinese herbal decoction pieces are carried out through Caizhilin Pharmaceutical.
From the perspective of revenue structure, in the first half of 2023, the large commercial sector will make the largest contribution to Baiyunshan's revenue, accounting for 66%, a slight increase of 5% year-on-year, but it has plummeted compared with the growth rate of 109% in the first half of 2018.
In addition, although the large commercial segment contributes the most to revenue, the gross profit margin is low and the contribution to the company's profit is not high. In the first half of 2023, the total profit of the large business segment will be 41.5 billion yuan, accounting for only 12% of the company's total profit.
Although pharmaceutical circulation is an industry with a very low gross profit margin, the gross profit margin of Baiyunshan's large commercial sector is still low compared with its peers. In the first half of 2023, the gross profit margin of Yifeng Pharmacy will be 40%, and even Jointown, which has low profitability, will have a gross profit margin of 842%。
Wind data shows that from 2018 to 2022, the gross profit margin of Baiyunshan's large commercial sector is as follows: 03%。In the first half of 2023, the gross profit margin of the large commercial segment was 688%, a decrease of 009 percentage points.
The low gross profit margin and the large commercial business segment account for the majority of the revenue, as a result, Baiyunshan is called a pharmaceutical commercial enterprise "dressed in the coat of pharmaceuticals".
In fact, the Great Southern Medicine Sector and the Great Health Sector are the "important contributors" of Baiyun Mountain's profits. In the first half of 2023, the gross profit margin of the above two business segments is %, which is much higher than that of the large commercial segment. Although the revenue of the two segments was 133600 million yuan, accounting for only 34% of the overall revenue, but the profit contribution is more than 70%.
Figure Baiyun Mountain semi-annual report).
However, since 2019, the performance growth of the two businesses of Great Health and Great Southern Medicine has fallen into a bottleneck. In 2022, the revenue of the Great Southern Pharmaceutical segment will be 10.5 billion yuan, down 10% from 2019, and the revenue of the big health segment will be 10.5 billion yuan, down 01%。
In the first half of 2023, the Great Southern Medicine sector only edged up 6% from the same period last year to 6.3 billion yuan, while the big health sector edged up 8% to 7 billion yuan.
Among them, Wanglaoji herbal tea, a pillar product in the big health sector, and Jin Ge, a cash cow in the Da Nan medicine sector, are obviously lacking in stamina.
In 2022, Baiyunshan's first domestic "Viagra" generic drug Jinge will have a gross profit margin of 9128%, comparable to Moutai, is the strongest "gold-absorbing beast" in Baiyun Mountain.
Since Jinge was approved for marketing in 2014, its sales have soared, from 2920,000 pieces all the way to 9,849 in 2021820,000 pieces. According to data from Minenet, in 2021, it is Baiyunshan "Jinge" that tops the list of ED (erectile dysfunction) drugs, with a market share of 206%, ranked first.
However, in 2022, Jinge's sales will be the first time, with a sales volume of 8682910,000 pieces, down 12% year-on-year. In 2022, Baiyun Mountain Jinge's revenue will be 105.2 billion yuan, a year-on-year increase of 643%, the growth rate has slowed down from the previous three years.
CICC pointed out in the research report that the reason for Jinge's poor sales is the fierce competition in the market. In particular, in 2020, the third batch of national centralized drug procurement included "Viagra" in the scope of procurement. Qilu Pharmaceutical's "Viagra" generic drug Qianwei is 208 yuan tablets (25mg) won the bid, bringing "Viagra" into the two-yuan era, and Pfizer and Baiyunshan were both out.
In the face of the pressure of Jinge's slowing growth, in March 2023, Baiyunshan launched the "Iron Horse" - dapoxetine hydrochloride tablets for men, aiming to expand the market segment of men's health, but this track is also highly competitive.
In the State Food and Drug Administration**, 24 products from 19 companies have been approved for marketing. In addition to Baiyun Mountain, there are also well-known pharmaceutical companies such as Kelun, Yangtze River, and Guangshengtang. In a recent survey, Baiyunshan said that the product is still in the cultivation stage.
In addition, in recent years, because of the distribution of interests in Jinge, Baiyunshan and Beijing Kangyeyuan have been in trouble. Beijing Kang Yeyuan believes that he owns 49% of Jinge's equity, and accuses Li Chuyuan, chairman of Baiyunshan, of refusing the company's reasonable dividends, and even questioning the company's financial fraud.
On the other hand, Wanglaoji herbal tea in the big health sector also encountered a similar situation. Wang Laoji and JDB have fought for more than ten years in the trademark battle, and it is still continuing.
On November 16, Baiyunshan announced that it had received a notice of acceptance of the appeal in the second-instance stage of the "Wang Laoji" trademark legal dispute litigation case. The two parties filed a lawsuit with the Supreme People's Court because they were dissatisfied with the first-instance judgment of the Guangdong Provincial High People's Court in the retrial stage.
However, under the "tug-of-war" between the two major herbal tea companies for many years, the herbal tea market has shrunk. According to the "2018 2023 China Tea Beverage Industry Production and Marketing Demand and Investment ** Analysis Report" released by the Prospective Industry Research Institute in 2018, from 2011 to 2015, the market size of China's herbal tea industry continued to maintain a double-digit expansion rate, with an average annual compound growth rate of 1234％；After 2016, the growth rate of the market size dropped to single digits.
From the performance point of view, the revenue of Wanglaoji Health Company has increased from 102 in 20199.6 billion yuan fell to 93 in 20224.9 billion yuan.
At this stage, although Wanglaoji herbal tea has made a large contribution to Baiyunshan's revenue, its growth is weak, and Baiyunshan has launched the Thorn Ningji series and Lixiaoji series, but it is still in the cultivation stage and has made little contribution to the company's performance.
At present, in addition to Jin Ge and Wanglaoji herbal tea, Baiyun Mountain's products with a scale of more than 100 million yuan also include thirst quenching pills, Xiao Chai Hu granules, kidney nourishing pills, Huatuo reconstituted pills, Po Chai series, Angong Niuhuang pills, etc., but there are still no big items like Jin Ge and Wanglaoji herbal tea.
This may be one of the reasons why Baiyun Mountain's market value is at the bottom of the "Three Musketeers" of traditional Chinese medicine FMCG.
Among the "Three Musketeers" in the field of traditional Chinese medicine FMCG, Baiyunshan not only has the lowest market value, but also has low gross profit margin and net profit margin. At present, its gross profit margin has decreased from 37% in the first three quarters of 2017 to 20% in the first three quarters of 2023, and its net profit margin has also decreased from 96% to 675%。
In the first three quarters of 2023, Yunnan Baiyao's gross profit margin was 27% and net profit margin was 14%, and Pien Tze Huang's gross profit margin was 48% and net profit margin was 32%, all of which were significantly higher than Baiyunshan.
In recent years, Baiyunshan's asset-liability ratio has also increased significantly, from 31% in the first three quarters of 2017 to 51% in the first three quarters of 2023.
Specifically, the growth rate of Baiyunshan's liabilities is much higher than the growth rate of assets. In the past six years, Baiyunshan's total liabilities have increased from 82 in the first three quarters of 20178.6 billion yuan, an increase to 37.9 in the first three quarters of 2023800 million yuan, more than quadrupled, assets from 270 in the first three quarters of 2017300 million yuan, an increase to 743 in the first three quarters of 2023500 million yuan, less than three times.
Among the "Three Musketeers", Baiyun Mountain's asset-liability ratio is also the highest. In the first three quarters of 2023, the total liabilities of Pien Tze Huang and Yunnan Baiyao were 253.6 billion yuan, 134400 million yuan, the asset-liability ratio is respectively. 21%, much lower than Baiyun Mountain's 51%.
From the perspective of the type of liabilities, Baiyunshan's short-term borrowings and long-term borrowings account for a relatively large proportion of the total liabilities, reaching 30%. Of this amount, short-term borrowings were 816.1 billion yuan, and long-term borrowings were 313.3 billion yuan.
This also means that in the first half of the year, although Baiyun Mountain has 2700 million yuan in interest income, but the interest expense is also as high as 22.5 billion yuan.
In the semi-annual report, Baiyunshan also warned of interest rate-related risks, saying that as of June 30, 2023, Baiyunshan's long-term interest-bearing liabilities were 29100 million yuan. If the company's annual interest rate rises by 50 basis points, all other factors remain the same, Baiyunshan's net profit will be reduced by 98830,000 yuan.
To sum up, at present, Baiyunshan is facing many problems, the large commercial sector has the most revenue, but the profitability is insufficient, the competition in the Danan medicine sector is fierce, the stamina of the big health sector dominated by Wanglaoji herbal tea is insufficient, and the company's asset-liability ratio is also high.
In recent years, Baiyunshan is also actively looking for new growth points, such as the layout of Baiyun toothpaste, the launch of **male** dapoxetine hydrochloride tablets "Iron Horse", high-thorn Ningji, Lixiaoji and other new products, but the specific effect has not yet appeared. The future development of Baiyun Mountain, whether it will continue to be suppressed or achieve a breakthrough, Interface News Bullet Finance will pay attention to it for a long time.
The title picture in the article comes from: Baiyun Mountain official website.