Liuyao Co., Ltd. (603368): The retail and industrial performance is good, and the gradual business structure promotes rapid development

Liuyao Co., Ltd. (603368): The retail and industrial performance is good, and the gradual business structure promotes rapid development

Leading pharmaceutical business in Guangxi, with rapid growth in 2018, the company achieved revenue of 117 in 2018.

15 ppm, an increase of 24 in ten years.

00%, net profit attributable to mother 5.

28 trillion, an increase of 31 in ten years.

59%, net profit after deduction 5

29 ppm, an increase of 31 in ten years.


Net cash flow from operating activities is zero.

220,000 yuan, an increase of 106 in ten years.


In 2018, the company’s operating scale increased steadily, its performance continued to grow rapidly, and its net cash flow from operating activities increased significantly.

Revenue for the fourth quarter of 2018 was 30.

40,000 yuan, an increase of 24% in ten years.

“Retail + Industry” performed well, and the business structure was further optimized. In 2018, the company ‘s hospital sales accounted for 75% of the company ‘s main business revenue.

79%, a rise of 0 compared to 2017.

37 pp, the proportion of pure sales continued to increase.

In terms of products, the company’s revenue was mainly from drug sales revenue of 111.

1.8 billion (+23.

30%) accounted for 94 of total revenue.

9%; medical device sales revenue is 4.

520,000 yuan (ten years +54.

55%), accounting for 3.


Looking at the situation by industry: 1.

Wholesale sales income was 102.

24 ppm is the company’s main source of revenue, growing by 20 per year.

04%, gross margin is 8.

11% (decade +0.

26pp), the first is the expansion of the company’s sales scale, at the same time the company’s varieties of regional agent level increased, distribution gross profit increased.


Revenue from retail business13.

0.6 million yuan, an increase of 50 in ten years.

54%, gross margin is 26.

40% (ten years +1.

46pp). Basically, the breed structure has been continuously optimized, and the sales of high-hair breeds have continued to increase.

In 2018, the company’s self-built retail pharmacy exceeded 100. Guizhong University Pharmacy has 443 stores, including 283 medical insurance pharmacies.


Industrial business realized revenue 1.6.3 billion (twice +238.

55%), gross margin of 43.


The production capacity of Xianzhu Traditional Chinese Medicine Technology has continued to contribute: In 2018, the income of Xianzhu Traditional Chinese Medicine Technology1.

1.3 billion, an increase of 133 a year.

91%, achieving a net profit of 0.

140,000 yuan, an annual increase of 187.

74%; Wantong Pharmaceutical achieved revenue in 20181.

65 ppm, an increase of 33 in ten years.

51%, achieving a net profit of 0.

86 ppm, an increase of 31 in ten years.


The Chinese medicine decoction piece business has developed steadily, and it is expected to realize the company’s sales channels to increase sales.

Compared with the wholesale business, the retail and industrial businesses have higher gross profit. The rapid growth of high-margin business is more conducive to improving the company’s overall profitability and bringing new market growth space.

The optimization of business structure led to the gradual improvement of profitability. In 2018, the company’s gross sales margin and net sales margin were 10 respectively.

76%, 4.

85%, an increase of 1 over 2017.

15 pp, 0.

32 pp, profitability is gradually improved.

The company’s expenses increased slightly during 2018, with selling expenses at 2.

810,000 上海夜网论坛 yuan (+45.

57%), sales expense ratio 2.

39%; administrative expenses 2.

3.1 billion (+47.

3.3 billion), administrative expenses rate 1.

97%; financial expenses 0.

6.3 billion (+340.

73%), the financial expense ratio is 0.


On the whole, the company’s operating scale has continued to increase in 2018, and the related expense ratio has increased. However, through continuous optimization of its business and product structure, its profitability has gradually increased.

As the regional circulation leader in Guangxi, the company is estimated to have a steady growth in pure-sale business, extending upstream and downstream, and expanding new market space. The company ‘s industrial and retail growth has exceeded expectations. We have raised our company ‘s profit forecast.


6.4 billion, raised to 6.


200,000 yuan, maintain “Buy rating”.

Risk reminders: The competition in the retail end service market continues to escalate, resulting in less-than-expected market development, industry policy risks, less-than-expected business development in the industrial end, and cash flow turnover risks caused by increased account periods.