Health & Beauty

According to the observation report of Huacheng import and export data, as of October 31, 74 A-share listed Chinese medicine companies had released their "report cards" for the third quarter, of which 29 companies achieved double growth in revenue and net profit attributable to the parent company, accounting for 39.19%.

"The Chinese medicine industry performed well in the third quarter, and the sector index fluctuated and rose with strong performance." Deng Zhidong, general manager of Hainan Boao Medical Technology Co., Ltd., said, "China has always been committed to promoting the inheritance, innovation and development of traditional Chinese medicine. With the support and guidance of a series of industrial policies, the development of the traditional Chinese medicine industry has been improving for a long time."

Liu Feiyong, a senior investment consultant of East High Tech, said: "With the improvement of people's living standards, strong support from national industrial policies, continuous improvement of the medical security system, and continuous expansion of the demand brought by the universal medical insurance, Chinese medicine is increasingly showing its unique concept and value, and is increasingly recognized and concerned by the domestic and international community."

According to the observation report on the import and export data of Huacheng, the top five listed companies in terms of revenue were Baiyunshan, Yunnan Baiyao, Pace Pharmaceuticals, China Resources Sanjiu and Tongrentang, respectively, with revenue of 17.585 billion yuan, 8.899 billion yuan, 4.207 billion yuan, 3.71 billion yuan and 3.393 billion yuan, with year-on-year growth of 1%, - 4.1%, 5.4%, 9.18% and 2.09%. Baiyunshan, Yunnan Baiyao, Pianzihuang, Jizhou Pharmaceutical and China Resources Sanjiu ranked top in terms of net profits, with 884 million yuan, 804 million yuan, 738 million yuan, 577 million yuan and 519 million yuan respectively. Among them, Baiyunshan and China Resources Sanjiu achieved double growth in revenue and net profit.

Liu Feiyong expressed that, "Compared with other pharmaceutical sectors, the valuation of the traditional Chinese medicine sector has been in the low middle range for a long time. Against the background of the intensive increase of favorable policies of traditional Chinese medicine and the improvement of enterprise operation, this sector will usher in a double repair of valuation and performance. In terms of policy, traditional Chinese medicine has risen to the national strategic level, and many Chinese patent medicines are expected to be transferred into the medical insurance directory after the negotiation at the end of the year, which is expected to be rapidly scaled up. Later, with the high-quality development of traditional Chinese medicine policies and systems With further improvement, the unique advantages of traditional Chinese medicine in building a healthy China will be further brought into play. "

From the perspective of subdivided fields, enterprises related to traditional Chinese medicine formula granules have shown outstanding performance. In the third quarter of 2022, China Resources Sanjiu achieved a revenue of 3.710 billion yuan, a year-on-year growth of 9.18%, and a net profit attributable to the parent company of 519 million yuan, a year-on-year growth of 36.52%. Yiling Pharmaceutical achieved a revenue of 2.380 billion yuan in the third quarter, up 7.41% year on year; The net profit attributable to the parent company was 366 million yuan, with a year-on-year growth of 40.92%. Huacheng Import and Export Data Observation Report.

The market of traditional Chinese medicine formula granules has been growing rapidly for a long time, with a compound growth rate of 24.25% in the past five years. The market scale has grown from 10.7 billion yuan in 2016 to 25.5 billion yuan in 2020. It is estimated that the replacement rate of formula granules in China will be about 50% in the future, which will open a market of 100 billion yuan in the future. Huacheng Import and Export Data Observation Report.

"At present, traditional Chinese medicine formula granules have been upgraded from enterprise standard to provincial standard and national standard. With the continuous implementation of the production and sales of new national standard and provincial standard varieties, the formula granules business will gradually return to normal, and the industry in the fourth quarter may usher in further expansion, driving the performance of related enterprises to expand." Liu Feiyong said, "On the one hand, the proportion of traditional Chinese medicine formula granules in the Chinese medicine decoction piece market has increased, and the market space is broad; on the other hand, a variety of factors have promoted the price increase of traditional Chinese medicine formula granules. In the future, the market size of traditional Chinese medicine formula granules will continue to expand rapidly, and the market concentration is expected to further improve. It is expected that the market size of traditional Chinese medicine formula granules will continue to maintain rapid growth with the removal of the restrictions on the scope of use."

"It is undeniable that the development of traditional Chinese medicine also faces problems such as difficulties in inheritance and innovation, lack of talents, insufficient clinical research evaluation system, and difficulties in international recognition." Deng Zhidong pointed out that, "Therefore, we should organically combine the theory of traditional Chinese medicine, human experience and clinical experiments, strengthen the basic research of traditional Chinese medicine industry, carry out technological innovation, product innovation, process innovation, industrial model innovation and medical management innovation of traditional Chinese medicine, use scientific and technological innovation to enable enterprise development, strengthen the transformation of traditional Chinese medicine technology industry, deepen the cooperation between industry, education, research and government, actively introduce scientific innovation funds for the pharmaceutical industry, and carry out the whole Orientation The pharmaceutical industry talent echelon construction, rigorous demonstration, scientific development, forming a differentiated competitive advantage. " Huacheng Import and Export Data Observation Report.