Category: Money Tips Date: 2006-09-28
Very prominent company's strong product
Baiyun Mountain is a very rare medical companies are 8 product sales Guoyi enterprises (groups of similar enterprises, only 4 products Livzon Guoyi, Hengrui Medicine Guoyi only three products), the current compound Danshen tablets have been become a super 200 million in sales of products, and to 300 million goal, Banlangen, Qing Kai Ling series, ceftriaxone series and amoxicillin series are also close to 200 million, a good product base allows the company has grown into a domestic pharmaceutical giant foundation.
Integration effect gradually.
Baiyun Mountain has been established the previous two years, will be formed antibiotic, OTC and joint venture strategy for the three major tectonic plates, in the new general manager Xie Bin, under the leadership of these three plates are being gradually integrated effect.
Venture areas:
A joint venture with Hutchison Whampoa and Hutchison Whampoa Baiyun Mountain leading products such as Danshen tablets and Banlangen maintained a very good growth momentum in 2006 is expected to compound Danshen tablets reach 240 million in sales, Banlangen series can be up to 1.8 billion yuan, 2006 profit is expected to grow about 20% year on year, in 2007 the company will vigorously promote stomatitis clear Xiaoyanlidan two series, and product sales, does not rule out the possibility of the future of millions.
In the first half of 2007, Baxter jacob will be formally established. By the State in 2006 to combat commercial bribery, fat emulsion product protection period has expired, the product prices and other such factors, jacob emerged in 2006 about 14 million loss, but after a joint venture of Baxter jacob will occur in two areas major change: 1, Baxter will transform jacob production process, the introduction of new enteral nutrition products, changes in product mix jacob. 2, Baxter jacob would be transformed in line with European GMP standards form a production system, as Baxter in Asia and the Latin American production base. Through these changes, Baxter jacob After 07-08 years of adjustment and reform after around 2011 are likely to form more than 1 billion sales volume.
Antibiotics areas:
Antibiotics is a strong tradition of Baiyun Mountain area, "anti-hegemony of the" brand has been formed, under the control of national policy, Baiyun Mountain appeared in increments of a fall in price of antibiotics business profits fall. Antibiotics in low-profit structure is taking shape, Baiyun Mountain relying on its own advantages in the antibiotic itself in this regard will be solid.
In the antibiotic plate, 2007 Baiyunshan Pharmaceutical Factory, and Tien-hsin, laboratories will gradually merge the company's production, supply and integration of related systems, the progressive realization of the procurement, management, sales integration, to achieve economies of scale, the future will be merged Baiyun Mountain Chemical pharmaceutical companies, the business and stronger antibiotics.
Baiyunshan Pharmaceutical Factory in 2006 to achieve about 10% profit growth, chemical pharmaceutical meager profits, Tien-hsin to achieve 7 million profit.
OTC areas:
OTC medication outside the field of Baiyun Mountain in the integration has already begun, Eisai, and Baiyun Mountain topical pharmaceutical companies have been merged in 2007 will also work with Ho Chi Kung pharmaceutical merger, the future will be in the field of integrated marketing OTC advertising resources to achieve platform sharing.
Ho Chi Kung in 2006 a slight increase in profits.
In addition to these plates, the Ming Xing Qing Kai Ling series of national policies by the impact of slower growth. Guanghua is only a small profit in 2006, but recently replaced the general manager, is reshaping the marketing, in 2007 there will be a big change.
Performance in 2007 turning point is a foregone conclusion
Baiyun Mountain in 2006 sales are still about 10% growth, reaching around 3.0 billion, but the environmental impact in the industry, under the influence of jacob, and Guanghua two subsidiaries sharp drop in the performance of the year is expected net profit fell more than 50% and net profit will be only 20 million or so, EPS 0.04 yuan.
The performance of Baiyun Mountain in 2007 will be profound changes, this change occurred mainly in the following areas:
1, the difference between amortization of 37 million equity investment under the new accounting standards will no longer amortized, forming 37 million incremental net profit (net of income taxes previously have been).
2, the original no longer have the right to use trademark amortization, adding 13 million net profit.
3, the company will be short-term financing through the issuance of certificates, land cash, orientation, etc. to reduce the additional financial costs, at present six more than 10 million in 2007 if the financial cost can compress 1 / 3 is more than 2000 million.
4, jacob's loss in 2007 will be halted, even if the continued loss of interest on only half of the joint venture, while the company may also enjoy two exemptions and three reductions of the tax incentives are expected to increase by 10 million net profit.
5, in operation, the state community services has expanded rapidly brought to the White Cloud Mountain centralized purchasing this kind of "branded generics" large enterprises opportunities.
According to our rough calculation, Baiyun Mountain in 2007 net profit will reach about 100 million, according to the total share capital of 469.05 million calculations will achieve EPS0.21 yuan.
From the longer term, Baiyun Mountain in 2008's turnover will reach around 3.6 billion, if the future can be achieved through the integration of chemical medicine preparation industry, the industry average of 5-8% of the net profit margin, net profit will reach 185 million more than All EPS0.39 yuan.
Of a large land reserves to provide a valuation of the bottom line
Historical reasons, the formation of Baiyun Mountain makes a great deal of land assets, Baiyun Mountain has 1,000 acres of land surrounding the urban area of 300 acres of land, with a total value of 20-30 billion, while the Baiyun Mountain is currently around 2.16 billion of market value, thus to see, a lot of land assets, the reserves for the Baiyun Mountain valuation constitutes a solid bottom line.
The bottom line may be positive in value around the holdings of
Although the short-term valuation of Baiyun Mountain high, but the performance inflection point to the formation and growth expectations of future performance and brings a growth momentum, we believe that can be 25-30 times more in 2007 for the valuation of the target price is expected to 5.25-6.3 yuan.
