Huang Qiuhan Sun pharmaceuticals

Huang Qiuhan Sun pharmaceuticals (300,026) Kang Rentang 63.75% stake, Kang Rentang is its most important subsidiaries. Kang Rentang begins TCM formula granules from June 2010 and tables, the first three quarters of revenue this year is expected to more than $ 190 million, representing a doubling revenue growth over the same period last year. Kang Rentang now capacity of 100 tons, as the shunyi new factory production, Production is expected to reach 300 tons. Medicinal materials falling prices contribute to the improvement in gross margins.　　Company "automated pharmacy" total solutions achieve positive results in Beijing and Tianjin, is currently being expanded to other provinces, covering the number of hospitals increased sales volume and lay a solid foundation for the next two years. Traditional Chinese medicine formula particles market optimism. Traditional Chinese medicine formula particles the size of the market less than 20, less than herbal 5%, granules development in China for just more than 10 years, from a national perspective is still in the promotion phase. Compared with the pieces, granules components explicitly, decocting-free, small, easy to carry swtor credits, easy to take advantages of, and is effective in reducing storage space and cost of hospital, next 3-5 year granules can keep markets 30% per cent of the increaseSpeed, 2015 market size of over $ 6 billion. Channel adjustment down xuebijing growth, relaxation and prospect worrying with hydrochloric acid method. This year the company increased the marketing channel reform, establish cooperation relations with large and medium-sized commercial enterprises, suspended cooperation with the old part of small agents. Under the influence of channels swtor power leveling, xuebijing flagship products such as some impact. Relaxation and arrest with hydrochloric acid methodTemporary restrictions on the use of, the retail price and manufacturer increasing effects, such as multiple, future prospects are optimistic, but the impact on overall revenue margins are diminishing. Expected receipts amounted to $ 1.07 per share in 2012, 2013, $ 1.32. Traditional Chinese medicine formula particles have broad market prospects, companies using Kang Rentang deep market in North China, enormous potential for development in the North。 The first proposed the "automated pharmacy" concept, increase customer stickiness.　　Company valuations is moderate, with high growth potential, in view of this, we have given the company "overweight" rating. Risk disclosure: traditional Chinese medicine formula particles-than-expected sales; pilot enterprises to expand, new competitors entering; price increase to the cost pressure on traditional Chinese medicine formula particles of Chinese medicinal materials; traditional Chinese medicine injectionAnd other risk management. (Author: sea securities certificate No: S0350510120009)