21st Century Business Herald reporter Zhang Wang reported from Fujian
Topics related to hemorrhoids treatment drugs have rushed to the hot search on Weibo twice during the year, making Ma Yinglong (600993. SH) has received special attention.
However, Ma Yinglong, whose stock price has continued to rise recently, has experienced a decline in performance in 2023.
According to the annual report, Ma Yinglong's revenue, net profit and net profit after deducting non-profits in 2023 will decrease by 11.2%, 7.38% and 23.68% year-on-year respectively, and these three performance indicators have just "peaked" in 2022 to hit a record high.
"At present, the company's channel adjustment has been put in place, and the relevant performance will gradually appear this year. In response to the future development trend, Ma Yinglong told the 21st Century Business Herald reporter on April 15.
Adjust the channel of the suppository system
In February and April this year, the topics of "(after the Spring Festival) the sales of hemorrhoid cream tripled in 3 days after the start of construction" and "the price of well-known hemorrhoids medicine increased by more than 10 times after the suspension of production" successively appeared on Weibo hot searches, unexpectedly making Ma Yinglong, a time-honored brand that has been on the market for 20 years, a hot spot.
Although the attention has increased, the revenue of Ma Yinglong's hemorrhoidal treatment products has declined.
The annual report shows that in 2023, the revenue of Ma Yinglong's hemorrhoid treatment products will be 1.292 billion yuan, and the operating profit will be 918 million yuan, accounting for 69.86%, while in 2022, this income will be 1.488 billion yuan, corresponding to an operating profit of 1.073 billion yuan, accounting for 71.61%.
Related to this, the gross profit margin of Ma Yinglong's hemorrhoid treatment products will also decrease from 72.08% in 2022 to 71.08% in 2023.
It is worth noting that Ma Yinglong has seen a rare change since its listing in the fourth quarter of 2023.
The annual report shows that in the fourth quarter of 2023, Ma Yinglong's net profit decreased by 60.22% year-on-year to only 24.8696 million yuan, and the net profit after deducting non-profits fell by 116.29% year-on-year, with a loss of 7.8917 million yuan, which is also the first time since its listing that there has been a net profit loss after deducting non-profits in a single quarter.
"One is because of the impact of revenue, we started the channel adjustment in the second quarter of last year, and the overall promotion was in November, mainly for the company's core varieties of main quality cooperation dealers, actively optimize channels and cooperation methods, the original dealers have more than 200, and the current adjustment to more than a dozen. The above-mentioned Ma Yinglong explained to the 21st Century Business Herald reporter, "The other is because of the impact of expenses, the fourth quarter is the settlement cycle of sales expenses, salaries, etc., so the related expenses are slightly higher than other quarters." ”
Ma Yinglong's 2023 annual report states that "optimizing the stock structure, controlling business risks, and controlling the channel order", and pointed out that by reducing the number of channel first-level dealer cooperation, the channel management and control ability will be significantly enhanced.
"The channel adjustment involves some specifications of the core varieties of plaster suppositories, but it is still uncertain whether it will be extended to other varieties. The above-mentioned Ma Yinglong related person said, "The plaster is the company's two best-selling products." ”
According to public information, the plaster suppositories of Ma Yinglong's core varieties should be Ma Yinglong Musk Hemorrhoids Cream and Musk Hemorrhoids Suppository, but the sales volume of these two products in 2023 will decrease by 9.54% and 14.59% year-on-year respectively, and the inventory will decrease by 86.06% and 44.43% year-on-year, and the sales volume in the same period will be 129.4228 million and 240.234 million pieces respectively.
"Shipments will be reflected as revenue, but after the channel adjustment, there is control at the source of shipments. The above-mentioned Ma Yinglong said, "At the same time, the company has increased dynamic sales, which will drive the consumption of inventory." ”
In fact, the impact of channel adjustments doesn't end there.
According to the financial statements, as of the end of 2023, the amount of accounts receivable and notes receivable of Ma Yinglong's parent company decreased by 35.83% compared with the beginning of the period, the amount of inventory decreased by 22.41% compared with the beginning of the period, and the net cash flow from operating activities increased by 76.7%.
Expand the boundaries of your products
Ma Yinglong, who focuses on the anorectal segment, has also been questioned by investors for "eating the old capital" due to the lack of obvious growth in new business.
"Hemorrhoid treatment products are our cornerstone, and stock expansion is a continuous and stable trend. The above-mentioned Ma Yinglong told the 21st Century Business Herald reporter, "Drug research and development is also based on anorectal and lower gastrointestinal tract as the core area, and it has also expanded the equipment and daily necessities products in the field of anorectal health." ”
According to the annual report, Ma Yinglong will add 6 new research projects in 2023, including 3 anorectal drugs, including 1 first-class innovative drug in the field of constipation treatment, complete the independent research and development of more than 60 new health products, and sign 18 new anorectal diagnosis and treatment centers, with a total of 80 contracts.
In fact, the potential market for hemorrhoid treatment is not small. According to the Southwest Securities Research Report, the scale of China's hemorrhoid treatment market has increased from 3.5 billion yuan in 2016 to 5 billion yuan in 2020, with an average annual compound growth rate of 9%, and the market size is expected to continue to expand rapidly, and is expected to reach 10.2 billion yuan in 2030.
According to other public data, Chinese patent medicines account for the largest proportion of 84.82% in the hemorrhoids medication market in mainland China, while chemical drugs are relatively small, accounting for only 15.18%.
However, in addition to the leading Ma Yinglong, there are many latecomers in the treatment of hemorrhoids, such as Yunnan Baiyao (000538. SZ), China Resources Sanjiu (000999. SZ), Baiyun Mountain (600332), Pien Tze Huang (600436. SH), Rongchang Pharmaceutical, etc., all have a certain market share.
The invention patents of Ma Yinglong's exclusive products, Ma Yinglong Musk Hemorrhoids Cream, Musk Hemorrhoids Suppository, and Dragon Ball Ointment, expired in October 2022.
However, Ma Yinglong said that after the expiration of the core patent, the related products are protected by other peripheral patents, such as raw material preparation methods, improved dosage forms, active ingredient testing methods, etc., and it is difficult to imitate traditional Chinese medicine.
"In addition to extending in the field of anorectal lower gastrointestinal drugs and anorectal health, the company is also expanding in eye health products, skin drugs and skin care products, and we hope that the growth rate of ophthalmic drugs can rise. The above-mentioned Ma Yinglong said.
In this regard, Ma Yinglong's 2023 annual report also has the statement of "returning to the origin of ophthalmology and vigorously developing the business of eye mekang".
What is little known is that Ma Yinglong started with eye medicine, and then chose to focus on the anorectal field, and in 2023, the production and sales of Ma Yinglong's Babao eye ointment will decline by 55.78% and 62.45% year-on-year, respectively.
"Last year, most of the company's work focused on the channel adjustment of hemorrhoid treatment products, so the ophthalmology department did not follow up. The above-mentioned Ma Yinglong person explained, "We also hope that big health will become the value curve of the company's performance growth." ”
However, Ma Yinglong did not disclose the income of the big health business, but said that he would develop and upgrade more than 80 big health products, focus on strategic key areas such as anorectal and ophthalmology, and expand and cultivate key varieties of big health.
"The big health business is not large now, but the requirements are relatively high. The above-mentioned Ma Yinglong related person pointed out.
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