The stock price has tripled in a year. What exactly does Linyuan like about Pien Tze Huang?
In recent years, folk stock Shen Linyuan has repeatedly expressed his optimism about the investment value of Pien Tze Huang. Pien Tze Huang's semi-annual report in 2020 shows that among the top ten shareholders of the company, "Linyuan Investment No.21No.29, 10 1 No.0" holds 0.65%, 0.42% and 0.39% respectively. Shell investment research (ID:beikotouyan) has doubts. What exactly does Linyuan like about Pien Tze Huang?
First, the idea of economic concessions.
Adhering to the concept of value investment, Linyuan pursues long-term steady appreciation, and the investment target is a monopoly enterprise with absolute competitive advantage. He once said that the advantage of Pien Tze Huang is that natural musk is approved by the state, which is not only a monopoly, but also a unique pricing power! This coincides with Buffett's most classic investment philosophy-economic franchising.
What is economic concession?
1, needed by people-treating liver diseases with unique effect.
Pien Tze Huang series products include Pien Tze Huang, Pien Tze Huang capsule and other drugs for liver diseases, which are suitable for acute and chronic viral hepatitis and carbuncle caused by heat toxin and blood stasis, and have medical and health care functions. At present, the prevalence rate of adult fatty liver in China has reached 12.5%-35.4%, which is the largest liver disease in China. Pien Tze Huang has his own unique curative effect in treating liver diseases.
Recently, Pien Tze Huang PZH211tablets were approved for clinical trials. This is the first new drug 1 approved by Pien Tze Huang, and its indications are advanced solid tumors such as intrahepatic cholangiocarcinoma and urothelial carcinoma. In addition, Pien Tze Huang's other 1 new drug, PZH2 109 capsule, has completed pre-clinical research and its clinical application is being accepted. The medicine is mainly used for treating nonalcoholic steatohepatitis.
2, can not be copied-top secret formula to build a moat
The key raw material of Pien Tze Huang is musk, which is a dry secretion extracted from the mature male sachet of musk deer. Musk deer is listed as a kind of wild protected animals, and the use of musk is approved by the state. Natural musk is extremely precious. In 20 15, the state stopped the quota supply of natural musk, among which Pien Tze Huang was one of the few enterprises allowed to use natural musk.
After 500 years of inheritance and innovation, Pien Tze Huang has been listed as a national first-class protected variety of traditional Chinese medicine, and its formula and technology are protected by the state, which belongs to the top secret formula of the country and has a permanent confidentiality period, which is difficult for other Chinese medicine enterprises to copy, and it is also an absolute "moat" owned by it.
3. Pricing power
Looking at A shares, apart from Maotai, only Pien Tze Huang (600436) can meet the above points at the same time.
2. What are the concerns of Pien Tze Huang's semi-annual report?
Pien Tze Huang's semi-annual report in 2020 showed that the operating income was 3.246 billion yuan, up1216% year-on-year; The net profit attributable to shareholders of listed companies was 865 million yuan, a year-on-year increase of 65,438+05.84%. Lin Yuan is answering an investor's question, "Can you share the logic of Pien Tze Huang again?" Meanwhile, I suggest you have a look at the annual report. Let's take a look at what is worthy of attention in Pien Tze Huang's semi-annual report.
1. The net cash flow from operating activities decreased by 40.53% year-on-year.
According to the semi-annual report, the net cash flow generated by Pien Tze Huang's operating activities was 547 million, down 40.53% year-on-year. The reasons explained by the company are as follows: (1) The cash outflow for paying various taxes and fees increased during the reporting period; (2) At the end of the reporting period, the company's time deposits increased and were not listed as cash and cash equivalents.
Looking back on Pien Tze Huang's major asset restrictions and comments, we can see that the situation is true. In addition, Pien Tze Huang received 3.209 billion yuan in cash for selling goods and providing services in the first half of the year, with a cash-to-cash ratio of 99. 10%, close to 65.438+0. This shows that the cash received by the company's sales is basically the same as the current sales income, and the sales have not formed a suspense account, so the capital turnover is better.
2. Inventory increased by 6.39% in the first half of the year.
By June 30, 2020, the inventory balance of Pien Tze Huang was 223 1 100 million, and the inventory balance at the end of 20 19 was 2.097 billion. In the first half of the year, the inventory increased by 6.39%, and the inventory turnover rate decreased. However, the average collection period was shortened from 30.37 days (438+09) in the first half of 2065 to 27.09 days, so there was no product backlog.
The main reason for the increase in inventory: due to the long-term bottleneck of upstream precious medicinal materials (musk and snake gall) and the price increase in recent years, Pien Tze Huang's stock (600436) was strategically laid out ahead of schedule, which can also be verified in the annual report.
3. Pien Tze Huang's weighted return on equity in recent ten years is greater than 15%.
For large consumer enterprises, the return on equity is an index that must be paid attention to. Pien Tze Huang's 20 10 to 20 19 weighted return on equity remained above 15%, and the ten-year average weighted return on equity was as high as 2 1.27%. Only a few leading enterprises in the A-share market can reach this level.
Yunnan Baiyao, which has been competing with Pien Tze Huang to be "Maotai in Medicine", has been slightly embarrassed in the past decade. The weighted return on equity of 20 10 rose from 23.07% to 28.94% of 20 13, which did not last long. 20 14 began to plummet, and the weighted ROE of 20 19. The latest data shows that Yunnan Baiyao's weighted return on equity in the first half of the year was 6.24%, and Pien Tze Huang was as high as 12.25%, almost twice that of Yunnan Baiyao!
3. What will Pien Tze Huang grow up on in the future?
The future of an enterprise is in the hands of management. What are the business strategies of Pien Tze Huang?
1, "one core and two wings" strategy, expanding mergers and acquisitions to become bigger and stronger.
Since Chairman Jianshui Liu took office on 20 14, the company has actively implemented the development strategy of "one core and two wings". On the basis of consolidating the pharmaceutical manufacturing industry, the two wings of cosmetics, daily chemical products, health care products and health food have been strengthened, and at the same time, as a supplement, the pharmaceutical circulation industry has been expanded. Pien Tze Huang Co., Ltd. (600436) stressed in its semi-annual report that among the increased sales revenue of 203 million yuan, cosmetics and daily chemical industry contributed 65.438+50 million yuan. The variety of business has increased, and the phenomenon of "eating the old" has been avoided in the future. After all, Dong 'e Ejiao's main business is too single and will break out soon.
In addition, Pien Tze Huang holds 5 1% equity of Longhui Pharmaceutical through mergers and acquisitions, and Longhui Pharmaceutical has the approval number of 1 15 for Chinese and western medicines, especially Angong Niuhuang Pill (double natural), Huang Xi Pill (double natural) and other proprietary Chinese medicines, which have high market value. Investing in Longhui Pharmaceutical will help to enrich the company's product pipeline and play a positive role in the layout of traditional Chinese medicine prescriptions.
2. Innovative industrial development model
Musk raw materials are very precious, and the price of natural musk has risen slowly in recent years. In order to solve the bottleneck problem of raw materials, the management continued to promote the industrial development model of "company+base+scientific research+farmers", and actively laid out the business of raising musk while making strategic reserves of musk raw materials. At present, the company has set up two musk deer breeding companies in Shaanxi and Sichuan, established several musk deer breeding bases, and developed farmers to raise musk deer.
3. Build Pien Tze Huang Experience Hall and popularize the concept of "China symbol".
Because Pien Tze Huang is well-known in the southeast, but in the north, there is an artistic conception of "locked in a boudoir". In order to expand the brand influence, Pien Tze Huang began to set up Pien Tze Huang Experience Hall in airports, railway stations, scenic spots and other crowded places in most provincial capital cities and major prefecture-level cities on 20 15. By the end of 20 19, there were more than 200 Pien Tze Huang experience halls in China. Overseas, we also actively promote the experience hall model and vigorously promote the concept of "China symbol on the Silk Road".
Fourth, summary.
Since 2020, Kweichow Moutai has increased by about 50%, and Pien Tze Huang has easily doubled. Pien Tze Huang has surpassed Kweichow Moutai in both "one year" and "three years". Generally speaking, when the market penetration rate reaches 15%, the enterprise performance will usher in a blowout growth. At present, the permeability of Pien Tze Huang is much lower than 15%, and there is still room for improvement from the perspective of investment.
RealData (ID:beikotouyan) thinks that the core competitiveness of Pien Tze Huang is "the top secret formula of the country". This formula, like Coca-Cola, cannot be copied by other Chinese medicine enterprises. In addition, the management of Pien Tze Huang is active, laying out upstream and downstream industrial chains and developing business types, which will still grow in the future. (ty0 15)