Pianzai (600436) company comment: rapid growth in performance is worth looking forward to 2020

The 2019 performance newsletter increased by 20.

24%, achieving rapid growth The company announced the results of its 2019 report: 57 revenue.

45 ppm, an increase of 20 in ten years.

54%; net profit attributable to mother 13.

74 ppm, an increase of 20 in ten years.

24%, realizing net profit after deductions to mothers13.

6 billion, an annual increase of 21.

01%, continued the steady growth trend of the three quarterly report, and the overall performance of the market is in line with market expectations.

The company’s core products, Pien Tze Huang series products, the subsidiary Fujian Pien Tze Huang Cosmetics Co., Ltd. (merger) and Zhangzhou Pian Tsai Feng Shanghai Jahwa Dental Care Co., Ltd. sales growth led to steady and rapid growth in performance.

Looking forward to 2020, the core Pien Tze Huang series is expected to continue to grow rapidly. At the same time, the rise of the daily chemical business is expected to contribute to the company’s performance growth, and the development trend is more worth looking forward to.

It is expected that the core Pianzai series revenue will increase by more than 20%, and the daily chemical sector revenue will exceed 30%. We expect the core product Pianzai sales to continue the good growth trend of the first three quarters, and it is expected that the revenue growth is expected to exceed 20%. The company Pianzai continues to make breakthroughs in 2019.The future development prospects are also worth looking forward to. According to the company’s 2019 semi-annual report: 1, the company continued to sort out channels, improve the experience hall layout, accurately locate high-end customers, and expand market growth. Nearly 200 companies were launched at the end of every half year, and the number maintained a good growth.The experience hall has achieved zero breakthroughs from the core areas of Fujian, Guangdong, and overseas development. Qinghai, Gansu and other provinces have achieved zero breakthroughs. The continuous expansion of the experience hall has been a continuous increase in the amount of Pianzai. 2. The company is expanding the vitality of terminal sales.Actively participate in meetings of high-end customer communication and promotion chambers of commerce, industry associations, etc .; organize terminal activities such as large-scale outdoor publicity and terminal business chain store training, and continue to drive the continuous growth of terminal pure sales; 3, the company continues to promote the second development research of Pianzai and increase academicPromotion, let more consumers understand the function of PianzaiyuEfficiency and increase stickiness. From the third quarter report of 2019, R & D expenses increased by 88.

6%; 4, overseas business is expected to continue a good momentum of development, the company continues to deepen the “Fujian Sanbao” Pien Tze Huang concept, successfully held an academic promotion meeting in Macau and set up the Pien Tze Huang Macau National Medicine Hall, to promote overseas Chinese to the Chinese excellent medical culture and “national treasure”Recognition of “Gui Yao” Pian Tsai.

At the same time, the company actively explores the national market on the “Belt and Road”.

The overseas market is expected to continue to grow.

It is expected that the daily income of cosmetics business in 2019 will increase by more than 30%.

In 2018, the cosmetics brand strategy was further upgraded. Through the continuous development of the company’s channels (continuous layout of the cosmetics experience hall, etc.), the promotion of experiential marketing, the improvement of terminal vitality, the cosmetics business gradually surpassed the remarkable development momentum.

Pianzai Jiehuahua, which operates toothpaste, has achieved profitability in the first half of 2019.

The continuous development of daily chemical products and cosmetics will become more 青岛夜网 and more obvious to the company’s performance.

The revenue of the pharmaceutical business is expected to increase by 10% -20%. The integration effect of Xiamen Hongren continues to manifest, and the subsequent advancement maintains a steady growth.

The cost pressure is high, and there is a strong price increase. The company’s gross profit margin for liver disease drug products in 2018 is expected to decrease3.

45% to 83.

02%, the gross profit margin of liver disease medication in the first three quarters of 2019 decreased by 2.

03% to 81.

26%, the decline in gross profit margin is expected to be mainly due to the impact of rising raw material prices such as upstream bezoar.

In the long run, the prices of core raw materials of musk, bezoar and snake bile are on the rise, which will put upward pressure on the 杭州桑拿洗浴会所 cost of Pien Tze Huang and a series of products in the future.

The company will lay out ahead of time, continue to pay attention to the way of the market of important medicinal materials, timely purchase, control the cost of raw materials, and at the same time, based on cost pressure and the scarcity and pricing power of the company’s products, Pianzai has expectations of price increases.

We are optimistic about the company’s continued development and maintain a “buy rating”. According to the company’s performance report, we adjust the company’s profit forecast. It is expected that the company’s EPS for 2019-2021 will be 2 respectively.

29, 2.

84, 3.

51 yuan, corresponding PE is 54, 43, 35 times, respectively. The company will continue to develop and develop channels to promote the growth of Pianzai in 2020. Pianzai is expected to increase prices. At the same time, the contribution of daily chemical growth will become a new engine of growth. We are optimistic about the company’s sustainable development, Maintain “Buy Rating”.

Risk warning: the weak economic environment leads to the expected end-consumer demand; the sales expansion exceeds the expected sales; the daily chemical business development gradually reaches the expected performance and the performance is less than expected