Pien Tze Huang (600436): Interim report results are in line with expectations
Event: The company released the semi-annual report for 2019, and the company’s operating income in 2019H1 was 28.
94 ppm, an increase of 20 per year.
40%; realize net profit attributable to shareholders of listed companies.
47 ppm, an increase of 20 per year.
89%; Realize net profit attributable to 上海夜网论坛 shareholders of listed companies in place of non-recurring gains and losses7.
45 ppm, an increase of 23 per year.
Reported results are in line with expectations.
Opinion: The growth rate of Pien Tze Huang is relatively stable, and price increases are still expected in the future.
Operating income for the second quarter of 201914.
10 ppm, an increase of 19 in ten years.
33%; net profit after deducting non-attribution to mother 2.
810,000 yuan, an increase of 21 in ten years.
2019Q2 revenue and profit exceeded growth indicators.
The growth rate of 2019Q1 has improved, mainly related to the core product growth indicators.
Reported intermediate pharmaceutical industry revenue was 11.
92 ppm, an increase of 15 in ten years.
01%, accounting for 41 of operating income.
Since the first half of 2018, the revenue growth of the pharmaceutical industry segment has gradually decreased, mainly due to the decline in the revenue growth rate of the Pianzai series products.
During the same period of the previous year, driven by the accelerated development of experience halls and the increase in product prices, the base for revenue growth was higher.
The higher product prices reported are stable, and the company’s experience and expansion in the northern and western regions has expanded prudently and cautiously, thereby reducing the revenue growth rate.
However, based on the attributes of the core product National Treasure Famous Medicine, we believe that there will be price increases expected in the future, and the experience hall layout will also make a breakthrough.
The gross profit margin of the first-class Pien Tze Huang series products was 81.
21%, a decrease of 2.
Due to the increase in natural musk resources, an important raw material for Pien Tze Huang, the supply of bezoar is also susceptible to the impact of supply and market demand. The price of musk has been reported to have risen slightly, and the price of bezoar has continued to increase, leading to a decline in product gross margin.
In the long run, the prices of musk and bezoar are still on the rise, which will put upward pressure on the cost of the Pian Tsai series products in the future.
In this regard, the company also controls future raw material costs through self-built breeding bases, cooperative breeding with farmers, and strategic resource reserve in advance.
Reported revenue of the intermediate pharmaceutical business segment was 13.
870,000 yuan, an increase of 22 in ten years.
22%, accounting for 47 of operating income.
Pharmaceutical business gross margin is 8.
85%, compared with the same period last year 8.
88% is slightly lower.
The tightening of pharmaceutical business revenue and profit is related to the in-depth implementation of the control system of pharmaceutical circulation and the further compression of pharmaceutical circulation.
Innovate the promotion model of the experience hall, and build the time-honored brand power.
On the basis of regional distributors and pharmaceutical retail channels, the company further promoted the sales model of “Pianzaiyu Experience Hall”.
The layout of the experience hall transforms the passive layout of customers beyond the search, into an active layout of going out to accurately select customers.
The company actively opened Pianzai Experience Halls in key and blank markets across the country to screen high-quality customers, increase brand awareness and loyalty, 佛山桑拿网 and expand market growth.
At present, the Pianzaiyu Experience Hall has grown from more than 70 years at the end of 2016 to nearly 200, and its management has become increasingly mature, providing important support for performance growth.
Sales in East China are currently the main source of revenue for the company. In the future, the company will also increase the coverage of the experience hall in Beijing, Tianjin, Hebei, and the two lakes, promote product sales from east to west, and south to north, and expand the brand’s regional popularityLay the foundation for national popularity and performance improvement.
The daily chemical sector performed well and opened up space by brand promotion.
Cosmetics business in the daily chemical sector achieved operating income2.
410,000 yuan, net profit 0.
5.7 billion; toothpaste business achieved operating income of 0.
750,000 yuan, 0 net profit.
20,000 yuan, the total annual growth rate of daily chemical supplies income is 40.
24%, accounting for 10 of operating income.
The rapid growth of daily chemical product revenue was mainly related to the sales volume of the experience hall, the optimization of channel management and control, and the upgrade of product structure.
The reported statutory daily chemical products gross margin was 73.
42%, compared with the same period last year (58.
63%) increased by 14.
79%, indicating that the company’s terminal sales layout has achieved initial results and profitability has improved.
Due to the rapid growth of the performance of cosmetics subsidiaries, the company plans to build new warehouses and improve production workshops in order to meet the industry’s growing demand.
Thanks to the company’s continuous promotion of established brands and the gradual development of the experience hall layout, we believe that the rapid growth of cosmetics, toothpaste and other products can be expected.
Profit forecast and investment grade: Pien Tze Huang’s product is a national “double top secret” formula, with high social recognition and resource scarcity attributes, and has built a natural wide “moat” for the company.
We believe that the product has been a space for price increase for a long time, and through the nationwide coverage of experience stores, markets outside the East China region have opened, and the sales volume of Pianzai products has ample room for growth.
In addition, taking advantage of core products, the company actively expanded daily chemical business.
With the advancement of the company’s market expansion, the daily chemical sector will become another driving force for performance growth.
We expect the company to achieve revenue of 59 in 2019, 2020 and 2021.
82 and 90.
5.5 billion, net profit attributable to mothers is expected to reach 14.
88 and 23.
7.9 billion, with an EPS of 2.
13 and 3.
94 yuan, the current expected corresponding estimate is 41.
55 times, maintaining the “highly recommended” level.
Risk warning: raw material prices rise; product sales fall short of expectations.