Producer: Sina Finance Listed Company Research Institute
Author: Kun
In just half a year after its listing, the stock price and market value of the Pharmacist Gang have repeatedly experienced ups and downs.
In June 2023, after submitting the form several times, Yaoshibang finally landed on the Hong Kong stock market with an issue price of HK$20 per share, and the company's market value was HK$13.4 billion at the time of listing. With the rise in stock prices after listing, the share price of Yaoshibang once came to HK$64.5 per share, with a market value of more than HK$40 billion at that time.
But without the support of excellent performance, the rise in stock prices is obviously unsustainable. After ups and downs along the way, on December 13, the shares held by the pre-IPO shareholders of the Pharmacist Gang ushered in the lifting of the ban, and also ushered in the cliff-like decline of the company's stock price. Although before the lifting of the ban, the company had tried to stabilize the stock price by issuing multiple share repurchase announcements and extending the share lock-up period by senior executives, but it failed to do so.
Since the lifting of the ban, every trading day has basically been falling. As of today's close, the share price of the Pharmacist Gang is only HK$9.98 per share, which has been "cut in half" compared with its issue price. Its market capitalization is only HK$6.4 billion, which has shrunk by more than 80% compared with its previous prosperity of more than HK$40 billion.
The overall revenue scale is facing a sharp slowdown in growth, and the business profit model has not yet stabilized.
The main business of the majority is not profitable, and the money-making business has no scale and depends on subsidies The performance growth rate of the pharmacist gang has slowed down significantly
Since Yaoshibang did not disclose the financial data of the company's third quarterly report, we selected the financial data for the first half of 2023 for analysis. In the first half of the year, Pharmacist Bang achieved operating income of 7.97 billion yuan, a year-on-year increase of 18.56%. Although it has maintained growth in recent years, the growth rate of the Pharmacist Gang has slowed significantly compared to the growth of nearly 90% in 2020. In the same period, the loss during the period was 3.177 billion yuan, an increase of 393.0% year-on-year compared with 644 million yuan in the first half of last year, and the adjusted net profit was 70.17 million yuan, which was better than the loss in the same period last year.
From a business point of view, Pharmacist, founded in 2015, started as an Internet platform business, building a trading platform for sellers and buyers of registered drugs to solve the problem of imbalance between supply and demand in China's out-of-hospital pharmaceutical market, and Pharmacist Bang can charge a certain percentage of commission according to the seller's sales amount during the transaction. The original intention of this operation is the platform business of the Pharmacist Gang. Since 2019, Pharmacist has also developed its own business, that is, "middlemen in the drug supply chain", purchasing from upstream pharmaceutical companies, and then selling to downstream pharmacies and grassroots medical institutions after warehousing and distribution.
It should be noted that the above two businesses of the Pharmacist Gang have significant characteristics. Among them, the revenue scale and revenue proportion of self-operated business are very high, and the revenue in the first half of 2020-2023 will be 5.691 billion yuan, 9.590 billion yuan, 13.519 billion yuan and 7.522 billion yuan respectively, accounting for about 95% of the overall revenue each year, which is the absolute support for the company's performance. But at the same time, it is also the main reason for the slowdown in the company's overall performance growth, and the revenue growth of the self-operated business has decreased from 88.93% in 2020 to 17.37% in the first half of 2023. What's more, the self-operated business has always been empty in scale, and it is difficult to broaden the profit margin, in recent years, the gross profit margin of this business has been in single digits, resulting in the company's overall gross profit margin is only around 10%.
However, the platform business, which is more in line with the original business logic of the Pharmacist, is high GMV and low income. In the first half of 2023, the GMV from the platform business will reach 13.5 billion yuan, but due to the commission ratio problem, the revenue scale realized by Pharmacist is only 417 million yuan. For a long time, the revenue scale of this business has been about hundreds of millions of yuan, although it has maintained a relatively sustained growth, and the gross profit margin of this business is high, but the contribution to the company's overall performance is still limited. What's more, behind the high GMV is the subsidy of real money from the pharmacist gang. According to the calculation of the subsidy rate in the financial report, in the first half of 2022 and the first half of 2023, the subsidy amount of the pharmacist gang will be 64.673 million yuan and 67.705 million yuan respectively, so the amount for the whole year may exceed 100 million yuan.
In addition, in recent years, Pharmacist Gang has also invested heavily in marketing, and its sales expenses have been high year after year, with 726 million yuan, 1.064 billion yuan, 1.326 billion yuan, and 635 million yuan respectively in the first half of 2020-2023.
From this point of view, the main business that accounts for the majority of the revenue is not profitable, the relatively profitable business income scale is extremely limited and needs high subsidies, or it is one of the important reasons why the Pharmacist Gang is still difficult to get rid of losses, the stock market has been smashed for several days after the ban is lifted, and the market value has evaporated by more than 30 billion Hong Kong dollars.
The stock price has plummeted for many days, and the market value has shrunk by more than 80% Repurchases and extended lock-up periods have not helped the market
After submitting prospectuses several times and going public several times, the share price of the Pharmacist Gang can be described as ups and downs.
At the time of listing, the issue price of Yaoshibang was HK$20 per share, and then it reached an all-time high of HK$64.5 per share, and the company's market value exceeded HK$40 billion at that time. But the good times did not last long, and since the fourth quarter of this year, the share price of Pharmacist Gang has begun to fall one after another, once falling all the way below HK$15.
On December 13, the shares held by the shareholders before the listing of the pharmacist gang ushered in the lifting of the ban, and also ushered in the "cliff-like" decline of the company's stock price. On the day of the lifting of the ban, the pharmacist gang opened at HK$24.25 per share and closed at HK$14.62 per share, down as much as 46.04%. In the next few days, the Pharmacist Gang did not see a rebound inflection point. On December 18, the Pharmacist Gang fell another 28.30%, with a closing price of only HK$9.98 per share, and a market value of less than HK$6.4 billion, which has shrunk by more than 80% compared with the previous grand occasion of more than HK$40 billion.
Source: wind
It should be noted that perhaps the current situation was expected before the stock ban was lifted, and the pharmacist gang did not do nothing, but tried to stabilize the stock price by buying back shares and the management voluntarily extending the lock-up period. In November 2023, Pharmacist Bang issued three share repurchase announcements. In order to meet the incentives granted under the incentive plan, 30,000, 120,000 and 120,000 shares were repurchased respectively, with a total consideration of more than HK$5.29 million. On December 12, the day before the lifting of the ban, Yaoshibang also announced that the company's single largest shareholder, MIYT Holdings Limited (a trust controlled by the company's founder, executive director, chief executive officer and chairman of the board of directors, established for the benefit of Mr. Zhang Buzhen), voluntarily promised that it would not sell any underlying shares for another 180 days from the expiration of the initial lock-up period. At that time, MIYT Holdings Limited held 19.60% of the shares.
But judging from the results, the above-mentioned stock price stabilization operation of the Pharmacist Gang is basically useless.
For the shareholders of the pharmacist gang before the listing, the shareholders who invested in the early stage can obtain a larger profit margin, but the investors in the later stage may have to bear a lot of floating losses.