The three star listed Chinese medicine companies have all announced that their performance will achieve high growth in 2023, and the stock prices in the secondary market will also perform well; The performance growth of the three pharmaceutical companies is mainly due to the continuous development of the main business, and the future growth prospects are still optimistic by the market. From the perspective of the industry, with the strong support of policies and the continuous expansion of medical resources, the penetration rate of traditional Chinese medicine is expected to continue to increase, and the industry will usher in rapid development.
Du Pengwen. Recently, Taiji Group, Tasly, and China Resources Sanjiu have issued performance forecasts, and it is expected that the year-on-year increase in non-net profit in 2023 will be69%-30.15%。
According to the ** price on January 26, the total market value of the three listed pharmaceutical companies is 2004.6 billion yuan, 23.4 billion yuan, and 55 billion yuan.
High growth in performance
On January 25, Taiji Group released an announcement on the expected increase in performance in 2023, and it is expected that the net profit in 2023 will be about 8300 million yuan, an increase of about 4 percent year-on-year800 million yuan, a year-on-year increase of about 13734%；The net profit after deduction is about 7600 million yuan, an increase of about 3 year-on-year9.3 billion yuan, a year-on-year increase of about 10729%。
Taiji Group focuses on the intelligent manufacturing of modern Chinese medicine, supplemented by the characteristic chemical medicine of hemp essence, and its business covers pharmaceutical research and development, industrial production, pharmaceutical business, health industry and other fields.
According to the 2022 annual report, the company's revenue in the pharmaceutical industry, pharmaceutical business, and "service industry and others" was 878.5 billion yuan, 800.6 billion yuan, 45.1 million yuan, gross profit margin was .31%；The company's consolidated offsetting operating income in 2022 was 1405.1 billion yuan, net profit of 3500 million yuan.
Before Sinopharm Group became the owner, Taiji Group's performance had declined for many years, and the non-net profit deducted from 2018 to 2021 decreased year-on-year respectively6%。After Sinopharm Group became the owner, the company's performance began to bottom out, and its operating income in 2022 increased by 15% year-on-year65%, net profit increased by 166% year-on-year84%, deducting non-net profit increased by 152 year-on-year59%。The company's net profit in 2023 increased by about 137 year-on-year34%, which is the second consecutive year of high growth since the company's strategic restructuring.
Benefiting from strategic restructuring and high performance growth, Taiji Group's share price in the secondary market performed well. So far in 2021, the company's stock price has gone from a low of 119 yuan shares, up to 6844 yuan shares, the maximum increase during the period was 475%. On January 26, 2024, the company's ** price is 3599 yuan shares, although down from the highest point, but still up 202% from the low. According to the ** price on January 26, the current total market value of Taiji Group is 2004.6 billion yuan.
Tasly, as another star listed Chinese medicine company, released its 2023 performance forecast on January 19, achieving a net profit of 11 that year$2.7 billion to $131.7 billion yuan, a year-on-year increase of 539% to 613%; Deduct non-net profit of 115.6 billion yuan to 127.6 billion yuan, an increase of 60%-77% year-on-year.
Tasly continues to focus on the three major disease areas of cardiovascular and cerebrovascular, digestion and metabolism, and tumor, and Tasly Holding Group holds 45% of the shares of the listed company57%。
In 2022, Tasly achieved an operating income of 859.3 billion yuan, of which the commercial revenue of traditional Chinese medicine, chemical preparation drugs, chemical raw materials, biological drugs and pharmaceuticals was 555.7 billion yuan, 12700 million yuan, 71.12 million yuan, 24.8 billion yuan, 141.7 billion yuan, gross profit margin was .25%。The company's operating income and non-net profit in 2022 increased respectively57%, and the non-net profit deducted in 2023 will increase by 60%-77% year-on-year, which means that the company's performance is accelerating.
From the perspective of secondary market performance, since September 2022, Tasly's share price has risen from a low of 9 yuan to a maximum of 18 yuan, with a maximum increase of 100% during the period. On January 26, 2024, Tasly's share price closed at 156 yuan shares, with a total market value of 23.4 billion yuan.
CR Sanjiu expects to achieve a net profit of 28 in 2023$1.8 billion to $306.5 billion yuan, a year-on-year increase of 1508% -25.16%；Deduct non-net profit of 26$7.8 billion to $288.8 billion yuan, a year-on-year increase of 2069% -30.15%。
China Resources Sanjiu is a large state-controlled pharmaceutical listed company, mainly engaged in the research and development, production, sales and related health services of pharmaceutical products, the main core business is positioned in the field of CHC consumer health and prescription drugs, China Resources Pharmaceutical Holdings*** holds 63% of the equity of China Resources Sanjiu, and the actual controller is China Resources *** China Resources *** is subordinate to the State-owned Assets Supervision and Administration Commission.
CR Sanjiu will achieve operating income of 180 in 20227.9 billion yuan, of which the revenue of the pharmaceutical industry - self-diagnosis and treatment (CHC), pharmaceutical industry - prescription drugs, packaging and printing, and retail industry was 1138.4 billion yuan, 597.6 billion yuan, 5600 million yuan, 13.8 billion yuan, the gross profit margin of the first two businesses was .83%。
The year-on-year growth rate of non-net profit deducted by China Resources Sanjiu from 2020 to 2022 was .75%, and its non-net profit is expected to increase by more than 20% in 2023, which means that the company has maintained rapid growth in performance for four consecutive years. Since April 2021, the share price of China Resources Sanjiu has risen from a low of 224 yuan shares rose as high as 6785 yuan shares, the maximum increase during the period was 203%. On January 26, 2024, the company's stock price closed at 5565 yuan shares, with a total market value of 55 billion yuan.
Benefit from the main business
The performance growth of the above three star Chinese medicine listed companies has benefited from the development of the main business.
Taiji Group's 2023 performance forecast explains the performance growth, saying that the company has made every effort to expand the market, strengthened the main product strategy and continued to make efforts, increased the sales of key products such as Taiji Huoxiang Zhengqi Oral Liquid, and drove the sales growth of other products.
Huoxiang Zhengqi Oral Liquid is the main variety of Taiji Group and is widely recognized by the market. In 2022, the company's Huoxiang Zhengqi Oral Liquid achieved sales revenue of 156.7 billion yuan, a year-on-year increase of 70%; In the first half of 2023, the product achieved revenue of 181.3 billion yuan, a year-on-year increase of 82%.
From the perspective of the competitive landscape, the Guangdong Pharmaceutical Retail Industry Association cited data from Minenet in November 2022 showing that in terms of retail, Tai Chi Herb aroma series accounted for 6978% market share, dominant. Guojin ** believes that Tai Chi Huoxiang Zhengqi Oral Liquid has advantages in brand power, product effect and channel end, and the product competitiveness will continue to lead; The company's sales channels nationwide are gradually maturing, and the volume of Huoxiang Zhengqi Oral Liquid nationwide will be smoother in the future.
In addition to Huoxiang Zhengqi oral liquid, emergency syrup is a variety that Taiji Group is focusing on promoting.
Emergency syrup is the exclusive variety of Taiji Group, and it is also the national medical insurance category B and the national basic drug catalog. The product has good antitussive, antiasthmatic, anti-inflammatory effects, and antibacterial and antiviral effects are also very clear; At the same time, Tai Chi Rapid Syrup has a clear dosage for infants and young children, has a good taste and low adverse reaction rate, which can meet the needs of children for safe medication.
Taiji Group's emergency syrup will achieve sales revenue of 52.6 billion yuan, a year-on-year increase of 89%; In the first half of 2023, the sales revenue will be 52.8 billion yuan, a year-on-year increase of 149%. IFC believes that with the close cooperation of Taiji Group's various marketing actions and the exploration of new models in key markets, emergency syrup is expected to continue to grow at a high rate.
At the same time, with the improvement of its core products, Huoxiang Zhengqi and Acute Syrup**, as well as the product integration of its subsidiaries, Taiji Group's gross profit margin in the first three quarters of 2023 was 4899%, an increase of 3 year-on-year99 percentage points. In addition, in 2023, the company will receive about 70 million yuan in non-recurring gains and losses such as subsidies, market value change gains and asset disposal gains, which will also contribute to performance growth.
For the future prospects of Taiji Group, Debang ** believes that the company has established the strategic goal of focusing on the intelligent manufacturing of modern Chinese medicine, supplemented by hemp essence characteristic chemical drugs and regional commercial leaders, and the operating efficiency continues to improve significantly, and the room for improvement is still huge; At the same time, the company started the industrialization of Cordyceps, and established a "wild tending" and "simulated tending" planting base for Cordyceps with a combination of high and low, indoor and outdoor dual modes, which is expected to provide a new growth pole for the company's development.
The performance growth of Tasly and China Resources Sanjiu also mainly benefited from the development of their main businesses.
Tasly's 2023 performance forecast said that the company made every effort to expand the product market, increase product sales, increase sales revenue compared with the previous year, increase profits accordingly, and reduce the asset impairment loss compared with the previous year. In addition, the fair value of the main financial assets held by Tasly in 2023 decreased by about 40 million yuan, a decrease of 110.4 billion yuan, the fair value change profit and loss for the period increased by 10 over the same period last year6.4 billion yuan.
According to the 2023 performance forecast of China Resources Sanjiu, the company conforms to the development trend of the industry, actively responds to market changes, continuously strengthens brand building, and optimizes product structure; At the same time, KPC will be included in the company's consolidated financial statements from January 19, 2023 to promote the improvement of profitability. According to the CITIC ** research report, benefiting from the increase in demand for cold products in 2023 and the impact of the consolidation of KPC, the company's performance in 2023 is in line with the expected high growth.
For the future prospects, SDIC believes that Tasly's performance has bottomed out since 2022, the trend of various operating indicators is improving, and the company's development has entered a new era, which is expected to usher in the opportunity of asset value revaluation. CITIC** believes that CR Sanjiu's CHC business matrix will be further enriched in the future, and the marginal improvement of prescription drugs and formula granules in the hospital is expected to drive the company's good growth.
The above three companies are all traditional Chinese medicine enterprises. The "14th Five-Year Plan" for the Development of Traditional Chinese Medicine and the Implementation Plan for Major Projects for the Revitalization and Development of Traditional Chinese Medicine have pointed out the goals, tasks and action roadmaps for the development of the industry, and promoted the revitalization and development of traditional Chinese medicine in an all-round way from the aspects of medical treatment, education, scientific research, industry, culture, and internationalization. With the continuous expansion of medical resources, the penetration rate of traditional Chinese medicine is expected to increase, and the industry will usher in rapid development.