#今日立秋#
The first inflection point was in 2008, when ROE dropped from 14.31% to 7.74%.
Through analysis, we found that this relatively large decline was mainly due to the decline in gross profit due to the economic crisis and the overall economic downturn, and the fact that it was adjusting its revenue structure and reducing the proportion of antibiotic business in favor of increasing intravenous infusion products
The second inflection point was in 2011, when ROE fell from 13.1% to -1.78%.
This is mainly due to the introduction of the antibiotic restriction order in 2011, which caused Shi Siyao's antibiotic business to be hit hard.
The price of its leading products, such as Lijunsha and Paiqi, has been reduced by 10%-52%. As a result, sales and profits declined
If we take a magnifying glass and look at the micro growth data, we will find that:
Due to the impact of the 2011 anti-resistance order, the growth rate of revenue and net profit began to decline since the interim report of 2011, and the revenue growth rate decreased from 13% in the 2010 annual report to 9% in the 2011 annual report; The growth rate of net profit decreased from 18% in the 2010 annual report to -115% in the 2011 annual report
After that, the net profit growth rate began to recover from the 2012 interim report, entering the upward channel, and by the time of the 2012 annual report, the net profit growth rate suddenly soared by 820%
Why skyrocketed by 820%, we went to look at the report and found that there was no particularly bright change in business data, so we think in turn, why from 2011 to 2012, its performance reversed so much, is it really affected by the 2011 restriction order, the performance of huge losses?
Later, we found that even if the 2011 resistance restriction order was taken into account, its performance would not be in the red.
The fundamental reason for its large loss in 2011 was that it made a large provision for goodwill impairment
In 2011, Shi Si Pharma made a provision for goodwill impairment of HK$224 million (equivalent to RMB 197 million) in anticipation of a possible decline in the gross profit margin of its large infusion business in the future, resulting in a negative net profit in 2011
But the question is: why do you want to do this? Hong Kong stocks do not have a special system of ST and *ST, so you don't need to take a big shower in the front so that you can travel lightly in the back
We don't know this question, but if you look at some of the announcements at the time, you may be able to understand some logic - in May 2011, the general meeting of shareholders decided to buy back no more than 10% of the shares from the public
Returning to the ROIC analysis, the third inflection point of ROE was in 2015. ROE decreased from 19.71% to 14.29%.
This is because in 2014, Shi Si Pharma spun off its antibiotic business, which generated a discontinued business income of 111 million Hong Kong dollars (equivalent to 88 million yuan) that year.
Therefore, ROE and ROIC in 2015 will show a state of decline
At this point in time in 2017, the ROE of Shi Siyao increased from 19.31% to 21.61%, which we have analyzed before. This is because the proportion of products with high gross margin has increased, which has increased the overall gross profit margin, which has increased from 51.56% to 58.74%.
Just looking at the return on invested capital of a company is not enough to enjoy.
We have to look at Cologne and Baxter, two of the No. 1 companies in the industry, to see their ROI
Predict the follow-up and listen to the next breakdown
It does not constitute any investment advice, the stock market is risky, and you need to be cautious when entering the market