Pian Tsai Ying (600436) Company In-depth Study: “One Core, Two Wings” Promotes the Development of Classics
Promote the “one core, two wings” strategy, and create an internal first-class health and wellness brand company. The core variety Pianzai has a history of nearly 500 years. It is an exclusive national treasure-level precious Chinese patent medicine. It is not only good at treating liver, detoxifying, and treating unknown swelling and pain.The effect is also unique in anti-cancer and health care. Its prescription and production process are top-secret, and its reputation is widely known overseas.
In 2014, after the new chairman took office, the company formed a “one core, two wings” development strategy: strive to establish the traditional Chinese medicine production as the leader, with health medicines, health foods, functional drinks and special-effect cosmetics, and daily chemical products as the two wings.The health industry group supplemented by drug circulation has transformed Pianzai into a domestic first-class health and wellness brand with strong traditional Chinese medicine cultural value. The company has continued to grow bigger and stronger, inheriting classics.
Multi-factors driving the rapid development of core varieties such as the Pianzi 癀 Experience Hall The company broke short-term supply of Pianzi 癀 无锡桑拿网 Experience Hall, changed from passive to active, and implemented marketing promotion: Innovate the sales model of “Pianzi 癀 Experience Hall”. As of the first half of 2019, the number of experience halls is close to200, the number of follow-up experience halls and the development potential of continued operation are expected to continue to drive rapid sales growth. At the same time, the company deepened the scientific connotation of Pien Tze Huang, strengthened consumer health attributes, and gradually expanded the consumer population of Pien Tze Huang and increased terminal demand by increasing the frequency of use; As an outstanding representative of Chinese medicine exports, Pianzai is exported overseas, and strives to continue to increase its overseas influence and expand the scale of overseas sales under the policy background of the country ‘s “Belt and Road” and encourage Chinese medicine to go abroad; the company ‘s upstream raw materials are scarce.Recent cost pressures and unique product attributes and brand power have given Pianzaiyu a strong pricing power; the company vigorously expands Pianzaiyu derivatives (toothpaste, cosmetics, etc.), enhances the value of Pianzaiyu unit, and contributes to incremental performance.
We believe that multiple driving factors such as the Experience Pavilion are expected to help the overall value of Pingzai’s core products continue to grow.
The daily expansion of daily chemicals and cosmetics business is expected to become the company’s new growth engine. The company implements the “one core, two wings” strategy and strengthens daily chemical and other business development.
The company set up a joint venture with Shanghai Jahwa to promote the continuous expansion of the coverage of Pien Tze Huang toothpaste through the channels of Jahwa. Pien Tze Huang toothpaste continued to grow and turned a profit in the first half of this year.
In terms of cosmetics, the company implemented a brand upgrade strategy, taking deepening experiential marketing and creating a dynamic terminal as the guide, and promoted the nationwide layout of Pianzai 癀 cosmetics experience stores, strong support for media advertising, large and medium-sized sales, beauty skin micro salons, and terminal product support services.Pragmatic in-depth sales operation, and the upgrade of the 3 + 3 + 1 product line further attracted new generations of young consumer groups.
In 2018, the company’s cosmetics and cosmetics sales revenue was 4.
9.8 billion yuan, an increase of 57%, and revenue in the first half of 20193.
30,000 yuan, a growth rate of 40%.
The gradual advancement of toothpaste in the future, the continuous creation of new history of cosmetics, and the promotion of the continued growth of the daily chemical sector revenue, the daily chemical business has become the company’s future following the traditional Chinese medicine as the core of Pien Tze Huang, and another growth pillar that drives the company’s development.
We are optimistic about the company’s development prospects. Upgrading the company’s development rating to the “buy” and “one core, two wings” strategy will promote the company’s sustainable development. We estimate that the revenue for 2019-2021 will be 60.
The annual growth is 25.
60%, so the final net profit attributable to mothers in 2019-2021 is 14 respectively.
49 trillion, an increase of 25 each year.
6%, EPS is 2 respectively.
73 yuan, corresponding to PE is 45, 36, 29 times.
We are optimistic about the company’s development prospects for building a domestic first-class health and wellness brand, giving the company a reasonable estimate of 45 times in 2020, corresponding to a target price of 134 in 2020.
Upgrade company rating to “Buy”.
Risk warning: the weak economic environment leads to the expected end-consumer demand; the sales expansion exceeds the expected sales; the daily chemical business development gradually reaches the expected performance and the performance is less than expected