Pharmaceutical consumer sector: China's huge market consumption power, coupled with the growth of the domestic rich people, the future of the pharmaceutical and health care industry dividend space is huge. In particular, the industry's headline companies can divide most of the industry dividends.
Below, I would like to share with you one of the leading companies in the healthcare industry: BY-HEALTH.
Become HealthIn 2020, BY-HEALTH realized revenue of 6.095 billion yuan, up 15.83 percent year-on-year, and net profit of 1.524 billion yuan, a jump of 528.29 percent year-on-year.
The main reasons why the company can achieve performance growth against the trend under the epidemic are as follows:
1. In 2020, under the epidemic, the growth rate of dietary supplements (VDS) in China's pharmacies was -16.9%, while BY-HEALTH was strongly counterattacking the epidemic, with a sales revenue growth rate of 2.6% in the pharmacy channel;
2. In 2020, the company's online channel The company's online channel has a bright performance, with a sales revenue growth rate of 62.77%.
The company has stimulated the independent sales and promotion ability of dealers through the establishment of an independent dealer system to meet the new product promotion needs. In addition, the company reintegrated the e-commerce business structure, so that e-commerce become the company's new performance growth point in the future.
So, the company realized high performance growth in 2020.
Leader OutlookCurrently, BY-HEALTH is in the dietary supplement (VDS) industry, and its market share is 10.3%, which is steady in the first place. The second and third place market shares, respectively, are: 6.4% and 5.8%.
Including e-commerce, the company's market share in Tmall and Jingdong platforms, similarly led the entire industry.
As a result of the post epidemic era, catalyzed by the growth in demand for nutritional and health products, the VDS industry with 6 times the dividend growth space, its leading companies are bound to benefit from the growth of the industry in depth.
Plus 2021~2023, the company opened a new three-year plan, the adjustment of business practices, the development of new products, the company's leading position is expected to be further consolidated (market share growth).
Financial analysisFrom the company's net profit data for each year, we can see that the company has been maintained, a higher performance growth output. In terms of cash flow, the company's money fund balance at the end of 2020 was 1.826 billion, relative to the company's operating volume, average annual net profit, is a more reasonable figure.
Now, the only thing that's worrying: the company's $923 million in intangible assets, and $1.216 billion in goodwill. Of course, the company's earning power is so strong that I'm sure even if there is a goodwill charge, it will only have a short-term impact.
In 2020, the world's central banks released a lot of water, resulting in a flood of money, inflation, the financial market was pushed to a high point by a large amount of hot money. the A-share market also appeared to be a spectacle, most of the leading companies by the institutions to hold groups of people to buy, resulting in the share price have hit a new record high.
Share prices hit record highs while price-to-earnings ratios also hit new highs. Ningde Times 156, Aier Ophthalmology 108, Tongze Medical 128, Aimek 188, etc., a number of leading enterprises of the price-earnings ratio through the sky.
Relative to the price-earnings ratio of the above companies, but only 28, and it is in a period of high performance growth. I believe such a valuation, in the past is very reasonable, but in the asset bubble market, it is suspected of being undervalued.
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