From Yunnan Baiyao to Huadong Medicine, will investing in "not doing a good job" wrong?

The 2021 annual reports of listed pharmaceutical companies have entered a period of intensive disclosure, and the profitability of major listed companies has naturally become the focus of market attention
.
The reporter of "Pharmaceutical Economic News" found that the driving factors for the growth of listed pharmaceutical companies in 2021 are as follows: First, it is related to the demand for new crown epidemic prevention and control, especially in the field of in vitro diagnosis, in the face of overseas markets, the new crown antigen detection With the increasing demand for test kits, the performance of stocks benefiting from the epidemic has increased significantly.
For example, listed machinery companies such as Kaipu Bio and Wantai Bio will double their net profit in 2021.
Second, with the normalization of epidemic prevention and control in China, the domestic economy recovers.
The overall recovery of the pharmaceutical manufacturing industry has accelerated, and the demand for the pharmaceutical consumer market has resumed growth, enabling traditional Chinese medicine companies that were greatly affected by the epidemic to achieve good results, such as Dong'e Ejiao, Tasly, Jianmin Group, Teyi Pharmaceutical and other companies.
Net profit have achieved more than doubled growth
.
Of course, there are not a few listed pharmaceutical companies with thunderous performance in 2021
.
However, similar to the reasons for the increase in performance, the reasons for the decline in performance are various: some are caused by the increase in raw material prices, which increases the company's manufacturing costs and increases the pressure on the company's operating performance; In response to the new pharmaceutical policy regulatory environment and fierce market competition; others are dragged down by the sharp decline in non-main business profits
.
Then, under the influence of the global economy, under the background that the diversified operation of pharmaceutical companies has gradually become the norm, will "not doing the right job" be wrong? How to avoid the risks brought by cross-border investment? According to the data of Oriental Fortune.
com, as of April 5, a total of 136 listed pharmaceutical companies have released their 2021 annual reports
.
With the disclosure of annual report performance, the "transcripts" of various companies in the biopharmaceutical sub-track gradually surfaced
.
Judging from the disclosed performance, nearly 20 companies will achieve a total operating income of more than 10 billion yuan in 2021
.
Among them, the total revenue of Shanghai Pharmaceuticals, Baiyunshan and Sinopharm Accord will all exceed 50 billion yuan in 2021, 215.
8 billion yuan, 69.
01 billion yuan and 68.
36 billion yuan respectively.

.
Net profit is the main indicator to measure the operating efficiency of an enterprise
.
In terms of net profit, there are 10 pharmaceutical companies whose net profit attributable to the parent exceeds 1 billion yuan
.
Among them, the net profit of Fosun Pharma, Baiyunshan and Daan Gene all exceeded 2 billion yuan, 4.
735 billion yuan, 3.
720 billion yuan and 3.
618 billion yuan respectively
.
Surprisingly, Jimin Pharmaceutical and Lisheng Pharmaceutical increased their net profit by 2206% and 1317.
3% respectively, ranking first or second in the 2021 net profit growth list
.
Affected by the epidemic, the companies with the highest net profit growth are also the epitome of a large number of "new crown dividend stocks"
.
Another nearly 30 pharmaceutical companies are showing a loss of net profit, including Taiji Group, Yunnan Baiyao, Jiaying Pharmaceutical, Watson Bio, Yiqiao Shenzhou and other companies
.
It can be seen that, affected by many factors such as the epidemic and medical policies, the performance of listed pharmaceutical companies in 2021 will show a state of "several joys and sorrows"
.
However, the core competitiveness of the pharmaceutical industry lies in the product
.
As the saying goes, "Western medicine looks at the patent, Chinese medicine looks at the secret recipe"
.
Due to the high cost, risk and difficulty of new drug research and development, from the perspective of the global market, factors such as the expiration of patented drugs, difficulties in new drug research and development, and decline in drug profits have prompted large pharmaceutical companies to diversify their businesses and seek new profit growth points.

.
The diversified business model also brings certain uncertainty to the company's performance
.
Cross-border success or failure theory, "medical beauty" is the best solution? Under the pressure of centralized procurement, many pharmaceutical companies are flooding into the research and development of innovative drugs and looking for the second curve of performance growth, but the development of innovative drugs is not a one-day achievement
.
With the rise of the "face value economy", it seems that the cross-border entry into medical beauty has become the optimal solution for traditional pharmaceutical companies to expand their business scope
.
The good performance of Huadong Medicine and Sihuan Medicine after their transformation into the field of medical beauty has given pharmaceutical companies a "reassuring pill"
.
In the first half of 2021, Huadong Medicine’s medical beauty business achieved revenue of 565 million yuan, of which international medical beauty business revenue was 276 million yuan, a year-on-year increase of 111.
28%
.
Sihuan Pharmaceutical uses the newly launched botulinum toxin brand Letibao in 2021 as a growth engine for its performance.
From February to June last year alone, the revenue of Letibao, which sold more than 200,000 bottles, reached 258 million yuan
.
Affected by the medical beauty business, Sihuan Pharmaceutical's revenue and net profit in 2021 will increase by 1383.
3% and 971.
1% respectively compared with the previous year
.
In such a complex industry background of cross-border medical and aesthetic companies, the proportion of pharmaceutical companies is quite high
.
In addition to Huadong Medicine and Sihuan Medicine, which are already well-known in the field of medical beauty, the newly entered Teyi Pharmaceutical, Yunnan Baiyao, Jiangsu Wuzhong, Xingkerong Pharmaceutical and other companies also have a background in the pharmaceutical industry
.
Compared with individual companies in other industries, which are independent in medical beauty, pharmaceutical companies appear to be prepared and have a tendency to compete for the first place
.
However, not all pharmaceutical companies have performed well in cross-border medical aesthetics
.
Yunnan Baiyao's 2021 annual report shows that medical cosmetology is the second curve of its new business development.
The company concentrates advantageous resources and actively promotes the ecological layout of the medical cosmetology industry chain
.
Among them, Shanghai Yunzhen Medical Technology Co.
, Ltd.
, as the setting unit of Yunnan Baiyao Skin Comprehensive Solution Medical Center, takes the opening of the outpatient department as the entry point
.
However, judging from the performance report card, its layout in the medical beauty track still lacks substantial progress
.
In addition, in 2021, Yunnan Baiyao's revenue will increase by 11.
09% year-on-year, but both total profit and net profit attributable to the parent have experienced a sharp decline
.
According to the annual report, in 2021, Yunnan Baiyao lost as much as 1.
929 billion yuan in fair value changes due to its equity investment failure, which means that it lost nearly 2 billion yuan in stock trading, which has become a direct factor in the cliff-like decline of its profit index
.
This is the first loss in its net profit attributable to its parent in 20 years, and the accusation of "not doing a proper job" swept up
.
For Yunnan Baiyao, its market value was overtaken by Pien Tze Huang.
In addition to the failure of stock speculation and the lack of substantial progress in business diversification, the lack of R&D investment and innovation quality are also factors that cannot be ignored
.
The data shows that from 2017 to 2020, the R&D expenses of Yunnan Baiyao were 84.
0354 million yuan, 110 million yuan, 174 million yuan, 181 million yuan and 331 million yuan respectively, accounting for 0.
35%, 0.
41%, 0.
59% and 0.
55% of the current operating income respectively.
% and 0.
91%, still lower than 1% of revenue
.
Investment is risky, and speculating in stocks is a "double-edged sword".
In the past, there were Yunnan Baiyao, Pien Tze Huang, Harbin Pharmaceutical Group and other companies that made mid-end toothpaste, and then there were Tai Chi Water from Tai Chi Group, Jiangzhong Pharmaceutical's stomach-nourishing monkey mushroom biscuits, and various other companies.
A wide variety of functional botanical beverages
.
Under the strategy of diversification, pharmaceutical companies are not only focusing on drug business, but also cross-border daily chemicals, food, medical beauty and other fields, and constantly expand their profit sources
.
It is undeniable that when pharmaceutical companies enter the daily chemical and food industries, they value the broad market prospects in these fields.
bring stress
.
In addition, even though medicine and medical cosmetology are closely related, they belong to two completely different tracks
.
Some experts pointed out that the medical beauty industry with a high degree of marketization focuses more on consumer-oriented marketing and publicity.
If cross-border pharmaceutical companies ignore the characteristics of medical beauty and apply the drug management thinking to the medical beauty industry, no matter how powerful the company is Will come back in vain
.
During the interview, some experts emphasized that stock trading is a "double-edged sword" to the performance of listed companies, and that listed companies are very risky in the stock market
.
In his view, stock price fluctuations will affect the profit and loss of listed companies, thereby amplifying the volatility of listed companies' performance
.
"Listed companies speculate in stocks outside their main business, which means that a very large risk of performance fluctuations has been exposed.
Investors should maintain high vigilance against companies that rely on stock speculation to maintain profits.

.
In addition, investors can compare the profit of the listed company's main business or the deduction of non-net profit with the investment income.
If the investment income is much greater than the deduction of non-net profit, it can almost be concluded that the company is not in business
.
"