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Data:2009-12-12 2:34
Source: today's investment
According to growth stock selection criteria, G River (600.75 thousand) July 3 re-elected "Today's investment in 66" potential shares. OTC products company with a strong operational capabilities, its main product the river card Jianweixiaoshi films, compound tablet Sarcandra are well-known brand products. Powerful OTC variety of operational capacity has become the undisputed Chinese medicine river core competencies, but also the company to become the North's three fine drug away to the South echoed OTC experts, combined with the split share structure reform and the imminent implementation of the management of close contact with the company's equity incentive performance of growth and management of self-interest in the next two years of rapid growth can be expected.
The company's core competence lies in OTC drug marketing ability, a more accurate grasp of the market. At present company's steady growth in Chinese patent medicine business, gross profit margins high and stable at 70%. Jianweixiaoshi has become the company's most important piece of the profitable varieties, accounting for about 70% market share in 2005 Jianweixiaoshi chip sales increased by nearly 40% in 2006 is also expected to achieve more than 23% growth. At the same time compound grass coral and bright throat due to changes in marketing policy and market positioning, expected to exceed the previous situation of stagflation. Everbright Securities analyst, Wang Xi-expected full-year 2006 the three varieties (stomach, grass and coral, bright throat) after-tax revenue is expected to achieve 1.05 billion, compared with 2005 sales of the three varieties of after-tax income of 807 million yuan year on year growth 30%.
At present the company's future five-year development strategy to focus on OTC variety of operations, in ensuring that OTC sales revenue and net profit steady growth, it is also an active affiliated enterprises Dongfeng Pharmaceutical antibiotics to reverse the loss of business momentum. Dongfeng Pharmaceutical products are now turning to preparations mainly the following three lines for the county market, raw material medicine and dwindling business, possible future transfer. Xi Wang Dongfeng Pharmaceutical Co., is expected in 2006 about a loss of 10 million yuan, with the company's 04 and in 2005 to gradually absorb the burden of Dongfeng Pharmaceutical business, but also a greater extent to reduce the burden on the company's future operations.
Today, investment "online analysts" show, the company 06,07, and in 2008 consolidated earnings per share forecasts were 0.48,0.59 and 0.69 yuan, corresponding to dynamic price-earnings ratio for 19.2,15.6, and 13.3-fold. A total of seven analysts currently follow, we recommend a strong buy, and bought 5 and 2, respectively, integrated rating factor of 1.29,12-month target price of 14 yuan.
Risk Tip: If you have large enterprises to compete with the company's leading product, then the companies face greater market risk; innovation in drug development is uncertain, if it fails, it will affect the company's long-term growth prospects. In addition, the company marketing prescription drugs not currently have an advantage, the future marketing of new drugs is also greater uncertainty.
Historical Information: River Pharmaceutical (600.75 thousand): Future earnings will be significantly enhanced May 31, 2006
Source: and News
At present, Jiang Chinese Medicines Traders (600.75 thousand) for the next five years, the development strategy of focusing OTC variety of operating up. OTC sales in ensuring the steady growth in revenue and net profit, while also actively to reverse the loss of business, Dongfeng Pharmaceutical antibiotics posture, coupled with the imminent implementation of split share structure reform and the management equity incentive closer links between the performance of the company's growth and management of self-interest , expected future sales of the company's gross profit would be steady growth in marketing costs in the control situation, the increase in net profit would be much higher than sales growth.