Why is the valuation of China Resources Medicine so low?

The low valuation of China Resources Medicine is attributed to the main structure of the company's business. The market gives China Resources Medicine such a low valuation, which is attributed to the company's main business structure, which can be divided into three parts: pharmacy, pharmaceutical distribution and pharmaceutical retail. Among them, in 20021year, medical distribution and medical retail revenue accounted for 8 1.86% and 3.2 1% of the company's total revenue respectively. As we all know, the profits of these two businesses are relatively thin, with gross profit of 6.2% and 9.2% respectively. It can be seen that the core profit of the company is still in the pharmaceutical sector, reaching HK$ 38.68+04 billion in 20438+0.