Taiantang: "first look at the characteristic Chinese medicine, then taste the rare ginseng"

On December 26, 2013, we went to taiantang to have in-depth exchanges with the company's management on the sales status of "characteristic traditional Chinese medicine" products, ginseng business progress and future development strategy Now we introduce the core points as follows: 1 About ginseng: the company has been selling ginseng under the forest for more than 15 years since 2013, all of which are planted by itself Now they are still sold as precious medicinal materials, sold by grams, The company's ginseng planting bases are all in Fusong At present, there are two pieces of land, covering an area of about several thousand mu Others are in talks with the government The plan is 50000 mu The company is named taiantang "Jishen" (Kangmei pharmaceutical has applied for "Guoshen"), one part of which is sold through its own drugstore channel, the other part is sold through the cooperative golden drugstore channel It is estimated that the sales will start from June to July 2014, and the annual sales is expected to exceed ten million yuan 2 The company's strategic goal is to achieve a sales volume of 3 billion yuan of brand characteristic Chinese patent medicine in 2017, but only 518 million yuan in 2012, with a compound growth rate of 40% - 50% The pharmaceutical business should always maintain the proportion of 60% - 70%, and the ginseng + decoction pieces business is about 30% - 40% The company will not deviate from the main business of characteristic Chinese patent medicine Qilin pill, Xinxin pill and Dantian Jiangzhi pill will contribute 2 billion yuan, mainly in the hospital market "Xinbaowan" has always been sold at retail terminals, and the price is low, so it will continue to be sold at OTC and third retail terminals in the future If it enters into the base drug in the future, it will expand the market scope, and cooperate with other products to achieve a total of 1 billion 3 The company will seize the opportunity to build 100 pharmacies in Shanghai In addition to the planned acquisition of pharmacies, it will also build more than 60 "Tai'an Tang" pharmacies through leasing Other provinces will build retail channels in the form of "National Medical Center" (the scale of national medical center is larger, In addition to selling drugs, we also need to sell health care products, equipment, precious herbs, famous doctors and skin physiotherapy It is planned to establish the brand of "Tai'an Tang" in Shanghai and other provinces through self built chain drugstores to sell the company's whole medicine and precious medicine product lines It is expected to open 3 national medical centers in Shanghai, 1 in other provincial capitals, and 30 in the next 3-5 years The company will not exclude the form of franchising to speed up the opening 4 We believe that it is promising for the company to achieve 50% of its revenue next year However, due to the trade of Chinese herbal pieces and the release of some new production capacity, the gross profit margin will decrease At the same time, it's difficult to reduce the sales and management costs, although the company will strengthen the cost control We expect that the company's earnings per share in 2013 and 2014 will be RMB 0.49 and RMB 0.68 (the fixed increase of 100 million shares will not be considered temporarily in 2014) Based on the comprehensive analysis, we give the company a "prudent recommendation" rating (please pay attention to our investment risk).