The first half-year report of the pharmaceutical industry is released: Jiashitang’s net profit increases by 30%

The first semi-annual report of the pharmaceutical industry is released: Jiashitang ‘s net profit has increased by 30%, and the risk of receivables is high.New entrants support.

  The first half-year report of Liang Changjun’s pharmaceutical industry was released, from the pharmaceutical distribution giant Jiashitang (002462), whose actual controller changed earlier this year.


From the perspective of performance, the new entrant inheritance has brought too much surprise to the company, and the follow-up may be worth looking forward to.

  Although it did not exceed expectations, it was still a good start. According to the 2018 Interim Report data released by Jiashitang on the evening of July 10, the company achieved revenue of nearly 85 in the first half of this year.

2 billion yuan, net profit reached 1.

USD 8.5 billion, an average annual increase of about 30%.

  With Jiashitang’s growth rate of about 20% in the same period last year and last year, the company’s performance has improved this year.

Quarterly, the company achieved revenue of 37 in the first quarter of this year.

8.8 billion yuan, net profit 0.

US $ 8.8 billion, which could initially achieve the company’s second quarter revenue of nearly 47.

3.2 billion yuan, net profit 0.

US $ 9.7 billion, which is also a sequential increase.

  Jiashitang is the largest direct-operated pharmacy in Beijing, and has gradually developed into a comprehensive service provider with an enterprise covering the whole country.

The company’s main business includes three major sectors: pharmaceutical wholesale, pharmaceutical logistics, and pharmaceutical chain. Among them, pharmaceutical wholesale is the core business, and has formed a dual product structure of pharmaceuticals plus consumables.

  In terms of specific divisions, the Jiashitang Pharmaceutical Wholesale segment achieved revenues of nearly 83 in the first half of this year.

USD 7.5 billion, accounting for more than 98% of the company’s revenue, while the total revenue of the pharmaceutical chain and pharmaceutical logistics accounted for only about 2%.

It can be said that the pharmaceutical wholesale sector will directly determine the company’s performance. Reporting its growth of more than 30% guarantees the company’s performance to grow at the same rate.

  However, in the past two years, the profitability of this business of Jiashitang has been declining, and it remained at a low level in the first half of this year.

Data show that the gross profit margin of the pharmaceutical wholesale business has reached 12 since 2015.

The previous 06% continued to decline, and the company’s gross profit margin also showed a similar change.

The gross profit margin of this business in the first half of this year was approximately 9.

45%, a slight decrease compared with the same period of last year, reflecting a decrease in the ability to control operating costs. It is reported that the operating cost growth rate of this business is slightly higher than the revenue growth rate.

  From a regional perspective, Beijing is still the core area of Jiashitang’s performance.

The report is significant, with Beijing realizing revenue of nearly 41.

3.5 billion yuan, the income of other regions is about 43.

US $ 8.5 billion, accounting for approximately 49% and 51% of the company’s revenue, respectively.

This is significantly different from the 90% revenue share of the Beijing area when the company went public in 2010, but it is still at odds with the company ‘s stated goal of covering the entire country.

At present, the company’s business outside Beijing only includes Anhui, Sichuan, Guangdong, Jiangsu and other regions. The nationwide business development still needs to be further strengthened.

  It is obvious that, under the condition that both Jiashitang’s net income and revenue have continued to increase, the company’s net cash flow from operating activities at the end of the reporting period (hereinafter referred to as net cash flow) is still -3.

USD 2.1 billion, an annual increase of about 30%, showing that the company’s profit quality is not optimistic.

  The Jiashitang Air Force’s years of performance and net cash flow have shown mismatches.

Since 2012, the company’s net profit and cash ratio (net cash flow / net profit) for four consecutive years has been negative. It was a positive value in 2016 and returned to its original form last year. It can be seen that the quality of the company’s earnings has fluctuated and most of them have deterioratedstatus.

It is generally believed that the measurement of net profit to cash ratio ratio indicates that the quality of corporate profits has improved.

  However, Jia Shitang also explained this.

According to the relationship between net profit and cash flow from operating activities, the company’s inventory increased earlier at the end of the reporting period.

USD 6.3 billion, and operating receivables increased by 4 compared with response projects.

8.7 billion, a total increase of nearly 7.5.1 billion yuan.

In addition, the company’s payment to the upstream supplier has been paid in advance, and the payment due to the account receivable of the downstream customer has not been received, which is an advantage realized after affecting cash flow errors.

  This reveals another significant issue with Jiashitang, the risks posed by the continued increase in receivables.

As of the end of the first half of this year, Jiashitang’s accounts receivable amounted to 59.

9.6 billion, an increase of 8 from the initial ranking.

9.1 billion yuan, accounting for 56% of the company’s total assets, this proportion has been rising in the past five years.

  With the full implementation of policies such as the cancellation of drug markups and bidding price reductions, companies within the industry are facing the challenge of extending the payment cycle of downstream hospitals due to reduced revenue and tighter funding.

With hospital rankings, pharmaceutical distribution companies are at a weaker level.

Jiashitang said in the interim report that it has strengthened the management of accounts receivable through various measures, but this indicator has continued to grow, and the proportion of accounts receivable in total assets is significantly higher than that of comparable companies in the same industry.not effectively.

  At the same time, Jiashitang reported that the temporary account receivables turnover days (about 117 days) also decreased slightly, but increased from the previous year, indicating that the company’s speed of payment is changing; this indicator also far exceeds many peersComparable companies, which means that the company’s competitiveness is weak and the risk tolerance exists.

If it is difficult to recycle in a timely manner in the future, it will affect the company’s capital use efficiency and even form bad debts to affect the company’s performance.

  Jiashitang’s policy impact is much more than that.

Driven by the reform of public hospitals, zero markup of medicines, and separation of medicines, the price of medicines has dropped significantly. At the same time, reforms in the field of medicine circulation, such as the two-vote system, have also changed the traditional business model of the medicine circulation industry, which has produced industry enterprisesNo small stress.

  In addition, the price reduction of consumables has also been implemented.

At the end of May of the Air Force, the Beijing-Tianjin-Hebei Health and Family Planning Commission jointly issued a press conference to report the completion of the procurement of joint medical consumables. The overall cost of procurement of consumables in public hospitals in the three places will drop by 15%.Effective from now on.

Consumables, as one of Jiashitang’s two core businesses, may face some price pressure in Beijing in the second half of this year.

  According to the notice of the next reporting period released by Jiashitang, the company expects to achieve net profit in the first three quarters of this year2.

00 billion to 2.

$ 6 billion, growing 0 to 30% annually.

This means that the company will achieve a net profit of zero in the third quarter.

1.5 billion to 0.

US $ 7.5 billion, a drop of 23% to 85% month-on-month, may indicate the emergence of policy pressure.

  In summary, the first semi-annual report released after the change of the actual controller of Jiashitang is no longer a big surprise, and the risks and pressures are still difficult to eliminate, but the company is expected to receive the support of the new owner in the future.

  Earlier this year, Jiashitang issued an announcement of changes in equity. The company ‘s actual controller, the Communist Youth League Central Committee, transferred 100% of the company ‘s shareholders, China Youth Industrial Development Corporation (hereinafter referred to as “China Youth Industry”), to the China Everbright Group Corporation (below).(Known as China Everbright Group), the Minister of Finance has approved the 四川耍耍网 release of the transfer.

  After this change in equity, Everbright Group will indirectly hold Jiashitang16.

72% of the shares, the company’s ultimate controller will be changed to the State Council, the company’s controlling shareholder will remain Zhongqing Industrial, and the controlling shareholder of Zhongqing Industrial will be changed from the Communist Youth League Central Committee to Everbright Group.

  China Everbright Group is an important national financial company, with enhanced capital strength.

Everbright Group becomes the actual controller of Jiashitang, and is expected to get more resources to support it.

This year Jiashitang plans to apply for a total bank credit of 57.

8.3 billion yuan, China Everbright Bank (601818).

SH, 06818.

HK) supported 1.5 billion yuan.

  Jiashitang said at the Air Force investor exchange meeting that China Everbright Group has made great health a key layout and development area for future development, and Jiashitang will become an important platform for practicing this strategy.Advantages and forces will also promote the growth and expansion of Jiashitang’s scale business.

  Everbright Group also stated that it will fully support the development of the large health sector and strive to build Zhongqing Industry into a leading domestic pharmaceutical industry operator within five years.

In the case that Everbright Group did not have big health assets, Zhongqing Industry, with Jiashitang as its main body, will be the core platform of Everbright Group’s big health strategy.

  However, in the capital market, Jiashitang is not favored by investors. It has basically continued to decline since last year, and has fallen by 16% this year.

However, there has been a recent rebound, with the latest breakthrough reported at 22.

37 yuan / share, if the subsequent company performance is difficult to improve better, the company is worried that it is difficult to get out of the rising market.