Three buy three sell Jesbon people fu medicine high "plus holding" can the dilemma reverse?

The total investment amount of 2025 in the medical and health industry exceeds 150 billion yuan, and has recently been sold again.
this time, I chose to wear a "Jesbon" condom.
November 9th, The People's Fund announced that its wholly-owned subsidiary, People's Fund Singapore, intends to transfer a 40 per cent stake in the LeFours Group to Quaalgo Capital for $200 million. according to
data, Leforth Group is engaged in the health business of both sexes, currently operating in more than 60 countries in China, the United States, Japan, Australia, Brazil, Thailand and other countries Lifestyles, Jissbon (Jesbon), ZERO (Zero Sense), Manix, Unimil, Blowtex, SKYN and other well-known condom brands, and has a research and development center, in cooperation with production bases, focused on the development and production of health products.
the completion of the transaction, The People's Fund Singapore still holds a 20% stake in the Leforth Group, which is no longer included in the consolidated statements.
the same time, Gao's capital will become the "Jesbon" the largest shareholder.
pharmaceutical assets announcement source: The company announced that the beginning of 2020 so far, the company's share price rose as much as 163 percent.
but these years frequently sell assets behind, but also hidden a lot of hidden worries, see the analysis below.
, condoms don't sell well? In fact, this is the third time that Manfu Pharmaceuticals has sold its Jesbon business.
May 1998, People's Fu Technology (before the name) to participate in the establishment of Shenzhen Junwen Industrial Co., Ltd., and agent "Jesbon condom" series of products.
2001, People's Fu Pharmaceuticals established Wuhan Jesbon Company.
, Jesbon condoms are not only sold in China, but also sold to the world, becoming the company's profitable assets, contributing 20 million yuan a year to the company's net profit.
, however, due to the frequent changes in the main business, resulting in the problem of tight capital chain.
2006, Wang Xuehai took over as chairman.
to cede the money, it sold a 70 per cent stake in Wuhan Jesbon to Ansell Australia for 137 million yuan.
August 2009, Manfu sold a 5% stake in Jesbon to Ansell's investment platform PDIPL for $2.5117 million. after 11 years of separation from the Jesbon brand (2017),
has grown and started an internationalisation of Human Fu Pharmaceuticals, with CITIC Capital's CITIC acquiring a combined 90 per cent stake in PDIPL and Dunlop (of which Manfu acquired a 54 per cent stake for $120m and CITIC for $80m for a 36 per cent stake).
the deal is completed, mr. Ltd. holds a total of 59% of Jesbon's stake.
then, Humane Pharma expanded Ansell's global health business by funding the establishment of a subsidiary, Manfo Singapore, and injecting all of its Jesbon business into Sun's Lefour Group.
, Among them, Ufo Singapore and CITIC Capital each hold 60% and 40% stakes in Leforth Group.
is now four years apart, people fu medicine will be "Jesbon" sale, is the condom business is not good to do? In 2017-2019, the company's condom business achieved operating income of RMB657 million, RMB1.824 billion and RMB1.928 billion, respectively, accounting for 4.25%, 9.8% and 8.84% of total revenue, respectively.
slowed in the past two years and contributed less to the company's overall performance.
, the LeFours Group, which is responsible for the health of both sexes, has not performed well.
2018-2019, operating income was RMB1,657 million and RMB1,928 million, respectively, while net profit was RMB32.69 million and RMB45.45 million, respectively, with a lower net interest rate.
the same time, Leforth has a market share of about 20%, second only to Durex.
addition, as at 30 September 2020, the total assets of the Leforth Group amounted to $5,139 million, with total liabilities of $2,336 million and a higher debt ratio.
Leforth business situation and owned brand sources: People's Fu Pharmaceuticals announcement finishing, the National Union Of Securities Research Institute is worth mentioning, as early as the 2018 financial results, People's Fu Pharmaceutical disclosed that, "will choose the opportunity to start the relevant assets of overseas listing work, focus on building the company's overseas capital platform."
" but there are rumours that plans for a listing of LeFours have been slow because of demand from Citic Capital to exit.
, it is likely to speed up its IPO when it enters the market.
In addition, The company chose to sell a 40% stake in The Company in order to accelerate the implementation of the "nuclear focus" strategy and gradually withdraw from segments with less obvious competitive advantage or weak synergies.
, the company has clearly around narcotic drugs, psychotic drugs, hormone drugs, natural drugs and other product lines, the development of core business.
completion of the transaction, the company will focus its health business on the development, production and marketing of health-related drugs for both sexes.
, on the other hand, approximately $400 million in investment proceeds from this transaction will be used for the Company's production and business activities, including, but not limited to, the repayment of the Company's interest-bearing obligations and the replenishment of the Working Capital of the Company and its controlling subsidiaries.
fact, optimizing the structure of assets and liabilities and adjusting the product structure are the two major problems that people's medicine urgently needs to solve.
, the existence of hidden worries as mentioned earlier, because of the people's medicine involved in a wide range of business, covering medicine, reproductive health, environmental protection, real estate, finance and other fields, resulting in problems in the capital chain.
, the company began implementing a naturalization strategy in 2016, allowing the company to become more focused by divesting non-core businesses and assets.
, the company's core business is divided into pharmaceutical, device agency, pharmaceutical business, health and other sectors.
, pharmaceutical sector products cover fine hemp drugs, veterinary drugs, contraceptives, vitamins, raw materials and so on.
in the pharmaceutical sector, People's Fu Pharmaceuticals has a number of subsidiaries, including Yichang People's Fu, Gedian People's Fu, Xinjiang Wei Pharmaceuticals, Three Gorges Pharmaceuticals, Wuhan People's Fu, Epic Pharma and so on.
, the largest proportion of revenue and profit is engaged in the fine hemp drug business Yichang Renfu, the core varieties of ryfentanie and shufentany, the total sales of sample hospitals in 2019 more than 1 billion yuan.
the first half of 2020, Yichang People's Fund achieved operating income of RMB2,149 million, up 9% YoY, and net profit of RMB654 million, up 31% YoY.
, overseas business revenues of more than 100 million yuan, and during the outbreak for the first time to export needles to Europe.
Pharmaceuticals equity structure and subsidiary situation Source: Company announcement, Pacific Securities Research Institute in a number of subsidiaries, the total revenue of Renfu Pharmaceuticals has maintained steady growth for many years.
from 10.1 billion yuan in 2015 to 21.8 billion yuan in 2019, with an average annual compound annual growth rate (CAGR) of 16.63 percent over five years.
, total revenue growth has slowed in the last three years.
People's Fu Pharmaceuticals' annual results source: The company's financial results also due to the impact of this year's epidemic, Renfu in the first three quarters of 2020 to achieve total revenue of 14.85 billion yuan, down 7.8% YoY;
, the first half of the division, the sexual health division and the environmental protection sub-section achieved revenue of 8.72 billion yuan, 882 million yuan, 53.59 million yuan, accounting for 90.31 percent, 9.13 percent and 0.56 percent of total revenue, respectively.
the same time, mainly in the domestic market revenue, the first half of the year with 8,348 million yuan of revenue accounted for 86.46 percent.
export business, mainly rely on EpicPharma, Wuhan Puke and the United States Puke and other subsidiaries to contribute results, in 2019 exports reached 2.722 billion yuan.
revenue from the 2020H1 contract: The company reported that while the company's total revenue had been growing steadily for years, profitability had not been satisfactory.
, the company's non-profit profit has slowed.
, net profit from deductions was RMB565 million in 2016, up only 0.02% YoY.
net profit, particularly in 2018, resulted in a significant loss of RMB2,662 million.
's huge loss was mainly due to a significant drop in the price of 2018 wholly-owned subsidiary Epic Pharma, LLC's main product Bear deoxycholic acid capsules, resulting in a significant decline in operating results, with the company taking into account goodwill impairment losses and impairment losses on intangible assets totaling approximately $3 billion.
, the company's sales costs have risen sharply in recent years, making the company's finances worse.
sales costs in 2015 were only 1,609 million yuan, while in 2019 they climbed sharply to nearly 4 billion yuan.
2017-2019, the sales expense rates were 16.87 per cent, 19.5 per cent and 18.33 per cent, respectively.
there is no doubt that continued high sales costs directly affect the company's profitability.
is that the debt ratio and goodwill of Pharma are very high.
in recent years, the company's debt ratio has been high.
2015 debt ratio of 49.42%, to the end of September this year, total assets of 349.25 yuan, total liabilities of 20,947 million yuan, the debt ratio increased significantly to nearly 60%, far higher than the industry average of 44.78%.
, as of September 30, 2020, the total owner's equity of the company was 13.979 billion yuan, with goodwill of 3.408 billion yuan.
, goodwill accounted for 24.38 per cent of net assets, with a high risk of impairment.
, frequent extension expansion, coupled with profitability can not keep up with the pace of debt, is currently the biggest problem facing People's Medicine.
the market after the third? Therefore, in order to solve the above problems, in recent years, People's Medicine has to choose to speed up the "naturalization strategy" pace.
focus on core assets, the company has increased its distribution of "cannabis drugs" by buying back Yichang People's Fu equity.
results show that the 2019 anaesthetic line of Human Fu Pharmaceuticals achieved revenue of 4,005 million yuan, 10 years CAGR of 22.83 percent, showing rapid growth, gross margin level is also close to 90 percent.
according to the statistics of the China Narcotics Association, Yichang People's Fu's domestic market share of narcotic drugs in the last 3 years reached 60%, leading the market for the industry's leading enterprises, fentany category of drug sales scale.
People's Fu Pharmaceutical Anesthesiology Product Line Revenue Source: Company announcement, Guosheng Securities Research Institute in October this year, People's Fu Pharmaceuticals through the issuance of shares to Li Jie, Chen Xiaoqing, Xu Huabin to buy its 13% stake in Yichang Manfu, the transaction price of 2.4 billion.
the transaction is completed, the company will hold an 80% stake in Yichang People's Fu.
in accordance with the performance commitments, Yichang People's Fund realized a net profit of 2020-2022 is not less than 14.20, 16.31, 1.854 billion yuan, respectively.
At the same time, People's Fu Pharmaceuticals also issued a notice that it intends to raise no more than 1 billion yuan from the non-public offering of shares of the controlling shareholder, Contemporary Group, for the construction of Yichang People's Fund "International Standard Production Base for Small Capacity Injection Preparations" project and to supplement the working capital of listed companies.
, in the elimination of non-core assets, people-blessed medicine is also frequent action.
In recent years, the company has divested Henan Renfu, Sichuan Renfu and other regional commercial assets;
the "naturalization strategy" continued to advance, from August 2019, the stock price of Human Fu Pharmaceuticals bottomed out, so far up as much as 275 percent.
market capitalisation of 55.3 billion as of the close of trading on November 10.
but the dynamic price-to-earnings ratio reached 77.87 times, the valuation is high.
Fu Pharmaceuticals 2016 to date stock price trend chart Source: Futu Niu niu summary, due to the previous People's Fu Pharmaceuticals main business, positioning is not clear enough, so that profitability has not been significantly improved.
, there have been frequent mergers and acquisitions since then, resulting in very high debt ratios and goodwill, and operational problems.
, however, in recent years management has been looking for ways to break through and continuously optimize the balance sheet structure and product structure.
from an investment point of view, as the company's performance has not yet been clearly reflected, coupled with high valuations, investors in the short term to beware of stock prices in advance of expectations, pay attention to risk aversion.
outlook, whether People's Fu Pharmaceuticals can become a real "dilemma reversal stock", but also to see whether the fundamentals can be clearly improved.
, in addition to looking at expectations, certainty is important.