A group of traditional Chinese medicine companies have achieved high growth in net profit!

[Pharmaceutical Network Market Analysis] In the past three days (August 20-August 22, 2022), a group of listed companies in Shenzhen and Shanghai have successively disclosed semi-annual reports, many of which are traditional Chinese medicine companies, involving Dong'e Ejiao, Jiaying Pharmaceuticals, Sinopharm Accord, etc.
, the author has briefly sorted out this
.

 Traditional Chinese Medicine Industry (Photo Source: Pharmaceutical Network) A batch of traditional Chinese medicine companies disclosed their performance Dong E E Jiao disclosed its semi-annual report on August 20.
During the reporting period, the company achieved operating income of 1.
826 billion yuan, an increase of 8.
25% year-on-year; net profit of 308 million yuan, A year-on-year increase of 106.
00%; non-net profit deducted was 267 million yuan, a year-on-year increase of 147.
14%
.

Regarding the reasons for the growth in performance, the company stated that it solidly promoted the "14th Five-Year Plan" strategic plan during the reporting period, closely followed the strategic main line centered on consumer demand, continuously optimized product structure, and upgraded product mix; profoundly practiced customer-oriented The center's digital operation model deepens category extension and innovation and exploration, and achieves customer growth and performance improvement
.

Jiaying Pharmaceutical released its semi-annual performance report on the evening of August 19, saying that in the first half of this year, its operating income was about 247 million yuan, a year-on-year decrease of 2.
15%; the net profit attributable to shareholders of listed companies was about 8.
59 million yuan, a year-on-year increase of 105.
33%; basic Earnings per share were 0.
0169 yuan, a year-on-year increase of 106.
1%
.

According to reports, Jiaying Pharmaceutical is a Chinese patent medicine manufacturing enterprise integrating R&D, production and sales.
It has a total of 70 drug varieties in 5 dosage forms, mainly involving orthopedics, throat, cold and heat-clearing Chinese patent medicines
.

 　　On August 19, Sinopharm Accord disclosed the 2022 semi-annual performance report.
During the reporting period, the company achieved operating income of 36.
129 billion yuan, a year-on-year increase of 8.
94%; operating profit of 1.
032 billion yuan, a year-on-year decrease of 9.
21%; net attributable to shareholders of listed companies.
The profit was 674 million yuan, a year-on-year decrease of 9.
07%; the basic earnings per share decreased by 9.
25% accordingly
.

Regarding the reasons for the decline in performance, the company stated that the customer flow of the retail sector stores has declined, and the sales growth has slowed down.
In addition, in 2021 and the first half of 2022, new direct-operated stores will be opened.
At the same time, the performance of the company's joint ventures declined, and the investment income decreased accordingly
.

 　　 　　The valuation of the traditional Chinese medicine sector is expected to usher in restoration.
In addition to the above-mentioned traditional Chinese medicine companies, many listed traditional Chinese medicine companies such as Tai Chi Group, Shouxiangu, and Pien Tze Huang have recently released their performance forecasts or report cards, which has also attracted the market’s attention to the traditional Chinese medicine sector.
keep improving
.

 　　Southwest Securities believes that the average valuation of the traditional Chinese medicine sector is 21 times.
As of the end of the first quarter of 2022, the proportion of fund positions in traditional Chinese medicine is 2%, which is not high
.

Recently, with the gradual improvement of the epidemic prevention situation, the valuation that has fallen sharply in the early stage is expected to usher in recovery
.

 　　It is also worth mentioning that many domestic brand Chinese medicine companies are state-owned.
With the implementation of mixed-ownership reform of state-owned enterprises, the industry also expects related listed companies to directly benefit, such as Pien Tze Huang, Dong E E Jiao, Yunnan Baiyao,
etc.

Huaan Securities said that Guangyuyuan's strategic layout and planning are gradually clear.
With the brand blessing of Sinopharm's time-honored brand and the support of the State-owned Assets Supervision and Administration Commission, it is optimistic about the long-term development in the future
.

 　　Southwest Securities believes that traditional Chinese medicine companies will quickly release the dividends of state-owned enterprises' mixed-ownership reform and usher in rapid growth in performance by clarifying equity relationships, improving corporate governance mechanisms, and increasing the enthusiasm of employees
.

 　　From the perspective of industrial structure and capital market, the investment value of the entire traditional Chinese medicine sector will become increasingly prominent
.

Xiangcai Securities pointed out that many provinces have recently introduced favorable policies for traditional Chinese medicine, and the traditional Chinese medicine industry is expected to usher in a policy dividend period
.

 　　Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.