Research Report of Furui Co., Ltd.: transformation from bottom performance to medical service

Cordyceps prices fall, help soft liver slice gross margin rise In the first half of last year, the company's revenue increased by 30% and its profit decreased by 80% year on year The main reason is that the price of Cordyceps, the main component of Soft Liver tablet, the price of which accounts for 50% of the total revenue, has risen sharply since the second half of last year, resulting in the gross profit rate of the product reduced to 30%, which has swallowed up the profits of other businesses of the company The price of Cordyceps is affected by the government's high-pressure anti-corruption policy In the first half of the year, the sales of Qinghai spring (polar grass) fell sharply, reducing the competition with the company for raw materials of industrial Cordyceps price In addition, the price and output of Cordyceps this year increased by about 45% compared with last year, and the oversupply also caused the price drop Since May, the drop has reached a maximum of 30% It is expected that the price of Cordyceps will continue to fall this year, which will help the recovery of gross profit rate of compound soft liver tablet The transformation from pharmaceutical manufacturing enterprises to medical service enterprises has initially seen profits, and has driven the company's drug sales The company cooperates with outpatient hospital and builds the second class a general hospital in Ulanqab, transforming from pharmaceutical enterprise to medical service enterprise The company has signed cooperation agreements with 13 hospitals under the second class and first class, with the annual target of 30, and plans to promote to 100 next year The cooperation mode is mainly to provide the company with self-produced and agent drugs and instrument sales, and turn around the losses in six months Assuming that each hospital can bring 200000-500000 yuan of profits to the company, the company's performance flexibility space is very large Earnings forecast, give the rating of increase We expect EPS to be 0.07 yuan in 2013, and the performance in the next year will depend on the development trend of several businesses of the company, but the short-term performance is very obvious In the future, any one of the three businesses of drugs, equipment and hospitals will improve, which will bring considerable profits to the company, and have a very flexible contribution to the company's performance We are optimistic about the expansion of the company's whole industrial chain and give it a rating of increase in shareholding Cordyceps prices fall, help soft liver slice gross margin rise In the first half of last year, the company's revenue increased by 30% and its profit decreased by 80% year on year The main reason is that the price of Cordyceps, the main component of Soft Liver tablet, the price of which accounts for 50% of the total revenue, has risen sharply since the second half of last year, resulting in the gross profit rate of the product reduced to 30%, which has swallowed up the profits of other businesses of the company The price of Cordyceps is affected by the government's high-pressure anti-corruption policy In the first half of the year, the sales of Qinghai spring (polar grass) fell sharply, reducing the competition with the company for raw materials of industrial Cordyceps price In addition, the price and output of Cordyceps this year increased by about 45% compared with last year, and the oversupply also caused the price drop Since May, the drop has reached a maximum of 30% It is expected that the price of Cordyceps will continue to fall this year, which will help the recovery of gross profit rate of compound soft liver tablet The transformation from pharmaceutical manufacturing enterprises to medical service enterprises has initially seen profits, and has driven the company's drug sales The company cooperates with outpatient hospital and builds the second class a general hospital in Ulanqab, transforming from pharmaceutical enterprise to medical service enterprise The company has signed cooperation agreements with 13 hospitals under the second class and first class, with the annual target of 30, and plans to promote to 100 next year The cooperation mode is mainly to provide the company with self-produced and agent drugs and instrument sales, and turn around the losses in six months Assuming that each hospital can bring 200000-500000 yuan of profits to the company, the company's performance flexibility space is very large Earnings forecast, give the rating of increase We expect EPS to be 0.07 yuan in 2013, and the performance in the next year will depend on the development trend of several businesses of the company, but the short-term performance is very obvious In the future, any one of the three businesses of drugs, equipment and hospitals will improve, which will bring considerable profits to the company, and have a very flexible contribution to the company's performance We are optimistic about the expansion of the company's whole industrial chain and give it a rating of increase in shareholding.