Liuyao Pharmaceutical Co., Ltd. (603368): The rapid development of Guangxi’s pharmaceutical business leader is at the time

Medicine circulation: The influence of the two-vote system has been eliminated, and the head concentration trend in the province is obvious.

The two-vote system was formally implemented in 17/18, and the policy was adjusted to crack down on overdrafts and other acts. The original issue was cleared, which has 杭州桑拿网 long been positive for the development of the industry. The impact of the two-vote system in the first half of 19 was gradually eliminated, and the revenue growth of some enterprises was significantly increased, and the industry was concentrated.Degree is further improved.

The company is a leading pharmaceutical distribution company in Guangxi Province, with revenue of 61 in 19H1 wholesale business.

3.1 billion, an annual increase of 25.

37%, with a CAGR of 19 in 2013-2018.

twenty one%.

According to data from the Ministry of Commerce, the company’s wholesale business in the province accounted for 25% in 17 years.

58%, state-controlled Guangxi’s market share is 12.

23%, and the company’s growth rate is much higher than the state-controlled Guangxi, the oligopoly competition pattern is clear, which translates into the 天津夜网 company’s supply chain management business development and high equipment growth business growth, the company’s future city share will further increase.

Pharmaceutical retail: endogenous and epitaxial two-way force, DTP pharmacy strongly driven performance.

The company’s pharmaceutical retail business is the leader in Guangxi Province, with a market share of about 10%. The listed entity, such as the common people, does not focus on the business focus of Yixintang and Dashenlin, and its competitive layout is dominant.

19H1 retail business achieved revenue 8.

68ppm, an annual increase of 52.

59%, showing a rapid growth trend in recent years, with a CAGR of 34 in 2013-2018.


The company accelerated the construction of DTP pharmacies. As of 19H1, the company already has 82 DTP pharmacies, with an average single-store revenue of more than 10 million, and DTP business accounted for more than half of the retail business revenue.

As the company ‘s retail business develops new businesses and mergers and acquisitions, the proportion of profits contributed by the retail sector will gradually increase, and the company ‘s estimated advantages are further reflected.

Pharmaceutical industry: driven by troika, contributing to marginal performance for growth.

In recent years, the company has gradually extended to the pharmaceutical industry. This sector mainly includes three subsidiaries of Xianzhu Traditional Chinese Medicine, Wantong Pharmaceutical and Medical University Xiansheng, which basically covers the fine-molecule field of the traditional Chinese medicine industry.

19H1 Pharmaceutical industry realized revenue1.

80 ppm, a 270-year increase.

48%, Medical University Xiansheng began to contribute performance and achieved revenue of 20.

94 million yuan.

Due to the small revenue of the industrial sector and the unique Chinese medicine production resources and consumption advantages of Guangxi Province, the industrial sector aims to maintain rapid growth and contribute to the company’s marginal performance to boost growth.

Financial forecast and investment advice company is the leading pharmaceutical business in Guangxi Province. We are optimistic about its long-term future development. It is predicted that the company’s EPS for 2019-2021 will be 2.



46 yuan, based on a comparable company, giving the company 15 times the 2019 estimate, corresponding to a target price of 41.

10 yuan, the first buy rating.

Risks indicate that the collection of medicines has exceeded expectations; the hospital business account period is too long; the operation of supplementary pharmacies has fallen short of expectations;