What we want to analyze today is China Resources Shuanghe. Through the articles of the previous two days, I found that in the field of cardiovascular disease treatment, the market share of China Resources Shuanghe Drugs is very high, such as diuretics, peripheral vasodilators, heart disease treatment drugs, antihypertensive drugs and other fields can be seen.
This confirms the impression given by China Resources Shuanghe: it is building a chronic disease business platform. In fact, the revenue of the chronic disease business platform has accounted for 36.97% of its total revenue, and the core product 〇 number is the compound anti-compression agent product with the largest number of people taking drugs in the basic drug.
In addition, CR Shuanghe also has 10 well-known products with more than 100 million yuan; in the specialty business platform, it ranks first in the market share of pediatric amino acids in children's nutrition infusion; and in the infusion business platform, CR's basic infusion market share ranks second.
These labels are like good for China Resources Double Crane, so let's see if it lives up to its name today.
The shareholder background of CR Shuanghe is very hard, it is CR Pharmaceutical (3320. HK) holding a company.
Cr pharma has four A-share listed companies, China Resources Sanjiu, China Resources Shuanghe, Dong'e Ejiao and Jiangzhong Pharmaceutical, which will complete the acquisition.
Let's look at the plate composition of China Resources Pharmaceutical.
CR Sanjiu is mainly engaged in drug development, sales, planting of Chinese herbal medicines, etc.;
East Ejiao is the leading leader in the domestic ejiao industry, with strong brand power and market foundation;
The market share of Jiangzhong Pharmaceutical In the field of stomach digestion has reached about 70%, and the market share of throat lozenges of proprietary Chinese medicines is about 25%;
Crs Shuanghe is a chemical drug manufacturer, which has built its own full-category product line in the field of chronic diseases such as blood pressure reduction and hypoglycemic, and built a platform for specialty business and infusion business.
Let's look at the shareholding structure of China Resources Shuanghe. Cr Resources Shuanghe is directly controlled by Beijing Pharmaceutical Group, which is part of China Resources Pharmaceutical Group Co., Ltd. and is ultimately controlled by the State-owned Assets Supervision and Administration Commission. Shuanghe Pharmaceutical changed its name to China Resources Shuanghe, starting from its history.
Crs Shuanghe was born in Taihang Mountain in 1939 as a military pharmaceutical factory; after moving to Beijing in 1949, it was renamed Beijing Pharmaceutical Factory, and gradually developed into a chemical drug comprehensive preparation enterprise; in 1997 it was listed on the Shanghai Stock Exchange; in 2010, it entered the subsidiary of China Resources with its original shareholder Beijing Pharmaceutical Group, and in 2012 it was renamed China Resources Shuanghe Pharmaceutical Co., Ltd., becoming the pillar enterprise of the chemical drug platform under the pharmaceutical sector of China Resources Group.
With the endorsement of the State-owned Assets Supervision and Administration Commission, Shuanghe will at least not have an incident similar to the fake vaccine of immortal biology. When choosing drugs, try to choose state-owned enterprises, and people in the system generally do not risk money and kill their lives.
Shuanghe is still in a period of business transformation, from the infusion business revenue, gradually increasing the proportion of non-infusion, and improving the level of profitability. In 2017, the contribution of each business segment of Shuanghe to the enterprise was as follows:
1. The chronic disease business platform is the company's largest business platform and the company's main source of profits.
2. Although the scale of the specialty business is not large, the year-on-year increase is close to 50%, which will be the potential source of the company's future growth.
3. The adjustment and transformation of the infusion business has initially achieved results, and the sales scale has stopped slipping and rebounded.
We use the table to briefly introduce the composition of Shuanghe products.
Shuanghe has many items with more than 100 million revenues, including O number, nifedipine sustained-release tablets, glycostepine, pitvastatin calcium, pediatric amino acids and so on.
The infusion field is currently in a cold winter period.
In this environment, the infusion market capacity continues to shrink, coupled with the impact of bidding and bargaining, infusion enterprises have entered the era of low profits, so some small and medium-sized infusion enterprises will be eliminated, and industry concentration will continue to increase.
Cardiovascular and cerebrovascular diseases and the pediatric industry are optimistic.
Chronic diseases will constitute more than 90% of the overall burden of diseases, and in 2016, the market size of chronic disease drugs has reached 794.8 billion yuan. Cardiovascular and cerebrovascular diseases and cancers have become the main killers of human health.
It is predicted that in the future, China's children's drug sales will continue to maintain an average annual double-digit growth rate. Unlike our time, neonatal diseases, digestive, respiratory and neurological diseases have become hot spots, and the cost is huge.
So, in this context, where is the breakthrough point for Shuanghe to improve profitability?
Looking at the business is like looking at people.
Some people will show you all kinds of certificates and all kinds of work experience, so that you feel so good, I have never heard of it. But later, after working, I learned how empty a person has been beautiful on the outside, and how empty he is on the inside; the real rich people do not need to show off, and the performances for others are people who have no money but are vain.
The front sorted out these things like double cranes, which made me think that double cranes are very powerful.
Last year, the revenue of Shuanghe increased by 16.87%, and this growth rate is still OK. But from 2013 to 2015, Shuanghe's revenue was negative, and the main reason for its turnaround came from its acquisitions. And shuanghe in the 2018 development strategy, the epitaxial mergers and acquisitions in the first place.
Strong people such as Hengrui Pharmaceutical currently have three mergers and acquisitions in the implementation. In such an industry background, mergers and acquisitions have their rationality. Shuanghe aims to obtain products, what I want to know is, what is Shuanghe's own research and development capabilities? What products can it produce on its own?
Unfortunately, by comparing the R&D investment of Shuanghe with other enterprises in its peers, I did not find any advantages in Shuanghe's R&D investment: lower than the industry average; not as good as Hengrui, not as good as Fosun, not as good as Xinlitai.
Shuanghe has a number of items with an income of more than 100 million yuan, but it is far from the extent of becoming a blockbuster drug; the birth of a blockbuster drug takes at least 12-13 years, costs at least 2 billion yuan, and is full of various risks and uncertainties, even if it is a company like Hengrui, it also starts from making generic drugs.
However, although the road ahead is difficult, enterprises like Shuanghe, which has an income of more than 6 billion yuan, only take out more than 200 million yuan for research and development, and the proportion is too low.
Shuanghe has many advantages, and it has a single product with an income of more than 100 million yuan in many fields;
Shuanghe has many ways to improve profitability, such as controlling costs and improving efficiency;
Shuanghe can also do a lot of mergers and acquisitions, expand product lines, and seize more markets;
However, Shuanghe himself knows that compared with leveraged companies, its research and development investment is not high. It may be because the effect of research and development is too slow, but the reason why mergers and acquisitions are effective quickly, everyone is reluctant to invest in research and development.
Although the figure of Shuanghe can be seen in many pharmaceutical fields, and its stalls are very large, it always feels that it lacks something that it can rely on for continuous growth. So, when doing analysis, it is best to ask yourself first, will you buy its stock?