 Home > Medical News > Latest Medical News > In 2023, the price of Yanhusuo is expected to fall, and Longshen Rongfa's profit will grow!

In 2023, the price of Yanhusuo is expected to fall, and Longshen Rongfa's profit will grow!

 Last Update: 2023-02-03
 Source: Internet
 Author: User

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According to the third quarter report of 2022 released by Gansu Longshen Rongfa Pharmaceutical Co.
, Ltd.
(Rongfa, 300534), the operating income in the first three quarters of 2022 was 223 million yuan, an increase of 34.
08% over the same period of the previous year; The net profit attributable to shareholders of the listed company was 5.
45 million yuan, an increase of 166.
56%
over the same period of the previous year.

Figure 1: Longshen Rongfa's core operating data from 2016 to 2022

First, Yuanhu painkiller pills are the core products

Longshen Rongfa's main business is the research and development of pharmaceutical products, medical products and health care products; The production and sales of proprietary Chinese medicines, health foods and original medicines have exclusive varieties (including exclusive dosage forms)
such as Yuanhu painkiller pills, sour jujube kernel oil drop pills, berberine tannin film, and Qi Wei Wenyang capsules.
Among them, Yuanhu painkiller pills (national medical insurance class A, national basic drugs) are the company's main products, mainly used for menstrual abdominal pain, stomach pain, hypochondria pain, headache, etc.
, mainly sold
in hospital terminals.

According to the company's 2022 half-year report data, Yuanhu painkiller pills occupy a high share in Yuanhu painkiller series products due to their exclusive dosage form and unique curative effect, and currently account for 70%
of the company's operating income.

In this issue, the big data platform of Tiandi Yuntu Chinese medicine industry analyzes the cost pressure of traditional Chinese medicine raw materials faced by enterprises from the perspective of raw materials involved in Yuanhu painkiller pills
.

Second, the core ingredients of Yuanhu painkiller pills

Table 1: Core raw materials of Yuanhu painkiller pills

Yuanhu analgesic drop pills have rational qi, invigorate blood and relieve pain
.
It is used for menstrual abdominal pain, stomach pain, hypochondria pain, headache
.

Third, the rise and fall of the core raw materials of Yuanhu painkiller pills

Table 2: Yuanhu painkiller pill raw material rise and fall table (: yuan/kg)

During the period from January 2022 to January 2023, the raw materials of Yuanhu painkiller pills increased by 2 varieties, accounting for 100%.

Fourth, the evaluation of raw materials of Yuanhu painkiller pills

Yanhusuo, the market is too high, the business is cautious, and the merchant plans to purchase
according to demand.
Due to the limited supply of goods in the market, the market price continues to maintain a strong operation, the spot general price is 130-135 yuan (kilogram price, the same below), and the asking price of 140-145 yuan
after inspection.
At present, it is still far from the new production in 2023, and merchants are optimistic about the future market
.

Bai Zhi, there are pharmaceutical factories purchasing in the early stage of the market, the source of goods moves smoothly, and the inventory is effectively digested
.
At this stage, due to the rise in the cost of goods from the production area, the market price has also risen significantly compared with the previous period, and the current Anhui unified price is 21-23 yuan, and the unified film price is 27-30 yuan
.

Fifth, the high market of Yanhusuo, the risk has increased

Figure 2: Price trend of Yanhuso market from 2016 to 2022 (RMB/kg)

From the perspective of historical market fluctuations, from 2014 to 2022, the Yanhuso market has experienced two stages:

The first stage (2014-2019): stimulated by high prices, the Yanhusuo production area began to expand, and its market continued to decline and impact production costs, and the price fell from 78 yuan in 2014 to 35 yuan in 2019, a decrease of 55.
13%.

The first stage lasted for 6 years, although the price continued to fluctuate, but the growth cycle of Yanhuso is short, once it encounters a high price market, production will quickly recover, which largely restricts its market to continue to rise
.

The second stage (2019-2022): the price of Yanhusuo continued to be low, the production of Yanhuso production areas was reduced, coupled with abnormal weather, the contradiction between supply and demand changed, and the price of Yanhuso increased from 35 yuan in 2019 to 140 yuan in 2022, an increase of more than 3 times
.

The second phase lasted 4 years, of which production was significantly delayed in 2020 due to the impact of the epidemic; In 2021, due to continuous rainfall, production and income were reduced; In 2022, due to high temperature and drought, production and income will be reduced again, which will gradually promote the upward trend of Huso to a new peak
in the past 10 years.

Yanhusuo is mainly distributed in Shaanxi and Zhejiang, accounting for more than 80% of the country's production capacity, because its production area distribution is relatively concentrated, easy to be controlled by capital, resulting in strong financial attributes, easy to mislead blind production
.

6.
Comprehensive evaluation

The continued high price of Yanhuso in 2022 will induce the production area to continue to expand, and with the continuous superposition of production capacity, it is inevitable that the future market correction of Yanhuso will occur
.
The new production period of Yanhusuo is superimposed with the procurement season, and its market will still fluctuate
significantly due to demand-driven before the new production.
Therefore, in the first half of 2023, the growth of Longshen Rongfa's pharmaceutical sales profit will slow down due to rising production costs, and in the second half of 2023, it will usher in rapid profit growth due to the general decline in raw material prices
.

Through the monitoring of raw materials, our platform suggests that it is appropriate to adopt on-demand production in terms of raw material reserves of enterprises, which can largely avoid the risks
caused by raw material market fluctuations.

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