This Chinese medicine stock has been surveyed by more than 70 institutions in one month!

【Pharmaceutical Network Pharmaceutical Stock Market】On November 27, Soochow Securities released a research report saying that Zuoli Pharmaceutical's Wuling series, Bailing tablets, and formula granules are driven by multiple varieties, and its performance is expected to maintain a high growth rate, and the net profit CAGR is expected to be about 40%
from 2022 to 2024.
Zuoli Pharmaceutical is a traditional Chinese medicine stock, and top-level policies support the development of traditional Chinese medicine, including traditional Chinese medicine pieces and formula granules are national key support areas
.
The bank believes that Chinese medicine pieces are not affected by the price increase; The company's formula granules have more than 600 enterprise standard records for scientific research projects, and the annual production capacity of 800 tons has been completed by the end of 2021, with a peak output value of about 800 million yuan; At present, the company has 101 varieties of national standard and 29 varieties of provincial standard, and has begun to file in multiple provinces, and it is estimated that it will achieve rapid expansion
in 2023 and 2024.
Public information shows that in the past month, Zuoli Pharmaceutical has been surveyed by more than 70 institutions, including LyGH, Wells Fargo Fund China Life Security Fund, Zhongtian Guofu Securities, etc
.
Among them, on November 11, Zuoli Pharmaceutical was surveyed by 78 institutions
.
In the interactive session, the institution mainly focuses on the sales and planning of the company's products, the impact of centralized procurement on the company, the filing of formula granules and the competitive landscape
.
The company said that in the first three quarters, Chinese medicine pieces and formula granules have achieved good growth, and the business of pieces and formula granules has achieved certain results through market expansion in recent years, and sales have had a good growth momentum in recent years; The company has completed the filing of 130 national and provincial standards, including 101 varieties of Chinese standards and 29 varieties of provincial standards
.
At the same time, the company has also carried out filing work in Hebei, Shandong, Inner Mongolia, Heilongjiang and other provinces to prepare
for the layout of future national sales.
At the same time, the company is one of the four pilot enterprises of Zhejiang Province traditional Chinese medicine formula granule scientific research project, and the company's sales hospital, sales layout and sales volume in Zhejiang Province in the past two years are quite good
.
And with the implementation of the formula granule national standard in the future, the company will not only be limited to the provincial market, this year also introduced a vice president with many years of sales experience in the field of formula granules, the national sales team is also gradually formed in place, planning the layout of formula granules in the national marketing, the company's current priority is to do a good job in the formulation granules national standard and provincial standard varieties of the record.

In terms of the impact of centralized procurement, the company believes that in terms of policy advantages, the country is more friendly to exclusive products and clinically recognized traditional Chinese medicine products, and the Beijing centralized procurement price of Wuling capsules this time has maintained the same
price as the Guangdong Alliance 。 The company plans to use the advantages of centralized procurement to accelerate the coverage of hospitals in these regions next year and consolidate the market share of the Guangdong Alliance and Beijing regions.
When the sales staff develop sales in the centralized procurement area, because of the variety advantage, part of the academic promotion and publicity costs will be reduced, and the packaging specification of Wuling capsules will be increased from 36 capsules / box to 54 capsules / box, further reducing the packaging cost; Before centralized procurement, some hospitals will limit the quantity of drugs with large quantities, and after centralized procurement, hospitals will not limit the number of centralized procurement varieties to a certain extent, so the company hopes to achieve price for quantity through centralized procurement and create a win-win
situation for all parties.
According to the third quarter report of 2022, Zuoli Pharmaceutical achieved main revenue of 1.
344 billion yuan, a year-on-year increase of 24.
66%; net profit attributable to owners was 204 million yuan, up 55.
08% year-on-year; Non-net profit was RMB198 million, up 56.
07%
year-on-year.
As of the close on November 25, Zuoli Pharmaceutical reported 11.
95 yuan, up 1.
36%, with a turnover rate of 7.
15%, a volume of 363,200 lots, and a turnover of 429 million yuan
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.