This article is excerpted from the Tianfeng Securities Research Report "Searching for the "Hidden Champions in A-shares"", part one of the series: Which targets with a market value of tens of billions have been ignored? 》
1. Why look for the “hidden champion”?
The performance of the CSI 300 has been trend-oriented in recent years, and the blue-chip value market has experienced sustained increases many times in the past few years. Since 2020, it has been difficult to grasp short-term investment opportunities in value blue chips, and the mid- to long-term endogenous power has been relatively insufficient.
Under the current background, compared with the "manifest champion" value blue-chip companies that have continued to rise in the past few years, we believe that investment valuations are relatively cheap, fundamentals are stable and upward, and they are in a leading position in the segmented track. , the "hidden champion" with certain market pricing power targets an investment strategy with a higher risk-return ratio.
2. What is the "hidden champion"?
In what areas does it exist? ——Traditional or emerging? Hidden champions are born in different fields, but they will always develop in a certain direction with the intersection of technological development and market demand;
2B or 2C? Hidden champions are mostly in the 2B field and are the suppliers of supporting products behind customers;
Is the market scale in which it is located large or small? Hidden champions focus on business, the market size of their segment is usually not large, and they are mostly small and medium-sized enterprises.
The industries where hidden champions work are mostly concentrated in the manufacturing and chemical industries. Different countries have different focus on the advantageous industries of hidden champions. China's hidden champions are mainly located in the Yangtze River Delta and Pearl River Delta, and are developing at the right time.
There are three criteria for selecting A-share "hidden champions": ranking among the top three in the world market or in the country, rarely known to the outside world, and annual revenue of less than 20 billion yuan; four characteristics: business focus, resource advantages ( R&D and innovation capabilities), steady performance growth, and leading market share.
3. Screening criteria for “hidden champion” bids
4. List of the first batch of “hidden champion” bids
Guangzhou Restaurant: Cantonese-style mooncake faucet & quick-frozen Leading in food
Sailun Tire: the world's leading supplier of mining tires
Boshi Co., Ltd.: leader in petrochemical back-end automation & leading in industrial robots
Vehicle safety inspection : Leading supplier of integrated testing for motor vehicles
Jincheng Pharmaceutical: Leading supplier of cephalosporin intermediates & glutathione.
4. Company details
1) Guangzhou Restaurant: leader in Cantonese-style mooncakes & quick-frozen food
Guangzhou Restaurant Group Co., Ltd. was founded in 1935. The company was listed on the Shanghai Stock Exchange in June 2017 (Guangzhou Restaurant, 603043). The company has now developed into a large-scale food manufacturing and catering service group with deep Lingnan characteristics. The production and sales of mooncakes have continuously ranked first in the country from 2012 to 2018. It is the leader in Cantonese-style mooncakes. At the same time, it is vigorously developing quick-frozen foods to form a new market. Profit growth point.
The business focuses on "Cantonese flavor", based on Guangdong in terms of catering and food, and opening up domestic and foreign markets.
① "Build a brand in catering" and deeply cultivate in Guangzhou. The company started out in the catering business. It mainly owns self-operated Cantonese-style Chinese restaurants "Guangzhou Restaurant" and "Tianjipin". It also cultivates and develops a number of specialty catering brands such as "Xixidi", "Hao Tangtang" and "Xingyue City". Famous antique banquets such as the "Fuchu Banquet of Manchu and Han Dynasties", "Feast of the Five Dynasties" and "Feast of the King of Nanyue" have also been developed. The company signed a "Cooperation Framework Agreement" for "Taotaoju" in 2019, aiming to promote the resurrection and reconstruction of Guangzhou's time-honored brands. The company's catering sales model is currently mainly direct operation, with 19 direct catering stores, most of which are located in Guangzhou;
② "Food creates scale" and goes domestic and abroad. The company's food manufacturing business mainly focuses on moon cake series products and quick-frozen foods, supplemented by various categories such as cured meats, cakes, breads, and pastries. It owns well-known brands such as "Likoufu", "Autumn Wind", and "Zuosu". This segment mainly adopts direct sales and distribution models, including self-owned chain stores, e-commerce, supermarkets, special channels and dealers, chain franchisees, etc.
Currently, the company and its subsidiaries have more than 200 bakeries (including franchise stores). Among them, "Likoufu" is the company's flagship brand. It has many chain stores and distribution points in the city, and has general distributors in many domestic provinces, cities, and autonomous regions. Its products cover Mid-Autumn Festival mooncakes, quick-frozen snacks, Cantonese-style cured meats, lotus paste fillings, Eight series of products, including Western cakes and breads, safe lunch boxes, snack foods, and Dragon Boat Festival rice dumplings, are sold well in China and exported to the European Union, the United States, Canada, Australia, New Zealand and other countries and regions.
Time-honored and innovative brands have been enjoying good reputations year after year, and their production-to-sales ratio is still in short supply. The company continues to increase its brand influence and expand sales, thereby driving production, and the production and sales ratio remains high all year round. The "Guangzhou Restaurant" brand has a high degree of recognition among consumer groups in the catering industry. It enjoys the reputation of "the first restaurant in Guangzhou" and has been selected into the fourth batch of municipal intangible cultural heritage list in Guangzhou for its "Cantonese cooking skills" . The company was rated as "China's Famous Brand Product" in 2006; its production and sales ranked first in the country for seven consecutive years from 2012 to 2018, and was awarded the honor of "China's No. 1 Mooncake" by the China Hotel Association; it was certified as a high-tech enterprise in 2017, and in 2019 Recognized as "Guangdong Key Agricultural Leading Enterprise". The company has so far cultivated six generations of inheritors of Cantonese cooking techniques and nearly a hundred famous Cantonese cuisine masters and craftsmen. They have participated in cooking competitions on behalf of the country, province and city many times and returned with great honors. The chef team has been entrusted by the Overseas Chinese Affairs Office of the State Council for many years to represent the country as food ambassadors in Latin America, Oceania, Northern Europe and other places to conduct culinary exchanges and promote Cantonese cuisine culture;
In order to meet consumer demand, the company's production capacity continues to expand. . The company has set up food manufacturing and production bases in Panyu, Meizhou, Maoming, Xiangtan and other places. As of the 2018 annual report, the company's mooncake series product output was 11,600 tons, sales volume was 11,500 tons, and the production-sales ratio was 99.49%; quick-frozen food output was 20,600 tons. The sales volume was 20,200 tons, and the production-to-sales ratio was 98.09%. According to the company's March 2019 announcement, despite having expanded production by 7,040 tons, it still has a mooncake production capacity of no less than 2,000 tons/year and a filling production capacity of no less than 6,000 tons/year under construction.
The performance has grown steadily over the years and profitability has steadily improved. From 2011 to 2018, the company's revenue rose from 1.166 billion yuan to 2.537 billion yuan, with a CAGR of 11.75%, an increase of 2.18 times; net profit attributable to shareholders rose from 148 million yuan to 384 million yuan, with a CAGR of 14.56%, an increase of 2.18 times. 2.59 times; the gross profit margin benefited from the large-scale production and proper control of raw material costs, which reduced costs and achieved continuous improvement. In 2018, it was 54.66%, an increase of 7.38pct from 2011; the net profit margin has shown a stable and increasing trend for many years, and was 15.11 in 2018. %, an increase of 2.39pct compared with 2011. In 2019, the company opened up online channels. The single-store sales of Tmall flagship store increased by 138% year-on-year on Double Eleven, the sales volume of JD channel increased by 100% year-on-year, and the sales volume of JD channel on Double Eleven increased by 700% year-on-year. On JD.com In the self-operated pastry ranking list, the company jumped to third place in the country. On December 17, the company also reached a cooperation with JD Supermarket, allowing its time-honored food brands to ride on the e-commerce express, and jointly promote the substantial year-on-year sales growth in 2020.
2) Sailun Tire: the world’s leading supplier of mining tires
Sailun Group Co., Ltd. was established in Qingdao in 2002 and listed on the Shanghai Stock Exchange in 2011 (Sailun Tire, 601058 ), is the first domestic private tire company to be listed on the A-share market. The company's main business is tire research, production, sales and services, and it is the world's leading supplier of mining tires.
Deeply engaged in the tire industry and committed to "making a good tire".
The company's tire products are mainly divided into semi-steel radial tires, all-steel radial tires and off-highway tires, which are widely used in cars, light trucks, large buses, trucks, special vehicles and other fields; recycling products mainly include retread tires, tread rubber , rubber powder, steel wire, etc., which are used in tire replacement, old tire retreading, recycled rubber manufacturing, high-quality steel production and other fields; the tire trading business mainly adopts a market-oriented operation method, purchasing tire products from other companies and selling them externally.
Internationalization and going global are important strategies that the company has always adhered to. In terms of channels, more than half of the company's products are exported overseas and sell well in more than 100 countries and regions including Europe, the United States, Asia, and Africa. The ever-expanding overseas sales scale benefits from the improvement and improvement of the company's global marketing system. At present, the company has formed sales companies and service centers focusing on North America, Africa, Southeast Asia, Europe and other places, and sales representative offices in other regions. In order to support the global marketing network; in terms of talents, the company continues to introduce overseas experts to the R&D team and management team. At the same time, it cultivates and selects outstanding talents from production worker positions and sends them to study abroad for further study, and cultivates international talents from within the company.
The company builds advantage barriers from two aspects:
①Build industry leadership starting from technology. The company has attached great importance to technological innovation since its establishment and invests a large amount of research and development expenses every year to support independent innovation. The company is a scientific research demonstration base of the "National Rubber and Tire Engineering Technology Research Center". As of the end of 2018, the company has approximately 253 patents and has participated in the formulation or revision of 88 national and industry standards. The company is the first advanced technology enterprise in China to develop tires with "electronic ID cards" - RFID smart tires. It is also the first enterprise in the industry to use information technology to control the entire production process. In recent years, the company has been approved as "National Intelligent Manufacturing Pilot Demonstration Enterprise", "National Industrial Internet Pilot Demonstration Enterprise", "National Internet of Things Integrated Innovation and Fusion Application Demonstration Enterprise", "National Service-oriented Manufacturing Demonstration Enterprise" and other national honors. Qualifications;
Years of stable performance growth and steady improvement in profitability. From 2010 to 2018, the company's revenue rose from 4.05 billion yuan to 13.685 billion yuan, with a CAGR of 16.44%, an increase of 3.38 times; net profit attributable to the parent company rose from 113 million yuan to 668 million yuan, with a CAGR of 24.84%, an increase of 3.38 times. 5.90 times; gross profit margin in 2018 was 19.82%, an increase of 11.47pct from 2010; net profit margin was 4.80% in 2018, an increase of 2.00pct from 2010. Overall, the company's production and sales of all-steel tires and semi-steel tires have grown steadily, and gross profit margins have continued to increase. Off-highway tires have achieved major breakthroughs in terms of production, sales, channels, etc., and profitability has continued to increase. According to the 2019 performance report, the company continues to benefit from market development and low raw material prices. At the same time, the new production capacity of the Vietnam factory is operating well. In 2019, it achieved revenue of 15.1 billion yuan, a year-on-year increase of 10.34%, and net profit attributable to the parent company was 1.2 billion yuan, a year-on-year increase. 79.60%.
3) Boshi Co., Ltd.: leader in petrochemical back-end automation & industrial robots
Harbin Boshi Automation Co., Ltd. was founded in Harbin in 1997. The company was listed on the Shenzhen Stock Exchange in 2012 Listed (Boshi Shares, 002698). The company is mainly engaged in the research, production and sales of large-scale intelligent complete sets of equipment and environmentally friendly process equipment, and provides equipment-related supporting value-added services. It is the leader in the field of domestic petrochemical and chemical post-processing complete sets of equipment, and is the world's leading technology in the field of high-temperature submerged arc furnace robots.
Based on the traditional petrochemical back-end automation field, we will seize the opportunities of emerging robot products. The company's traditional main business is the complete set of automatic pellet palletizing equipment in the petrochemical field, which can provide fully automatic solutions for the post-processing of solid materials in downstream petrochemical, coal chemical, salt chemical, fertilizer, fine chemical and other chemical industries.
Over the years, this business has continued to expand into fields with fully automatic weighing and packaging needs such as grain, food, beverages, building materials, ports, and feed. The accumulation of technology in the petrochemical back-end automation field has extended the company's business to high-end industrial robot products with the same origin and different uses. Having laid the foundation, it has now taken the lead in the industry in many fields and formed new growth points for performance:
① In the field of metallurgy, the company's independently developed special robot products for high-temperature operations in front of calcium carbide furnaces can replace manual operations to achieve high temperatures. Dangerous work. At the same time, the company continues to promote the research and development of various submersible arc furnaces and robots in all aspects of alloy smelting, and some products have entered the debugging stage;
② In the high-end medical field, the company has invested in high-end medical robots and has invested in many A medical company, the projects involved include the research and development of minimally invasive abdominal surgery robots, the research and development of image-guided radiotherapy precise positioning systems, the research and development of remote-assisted minimally invasive pedicle implantation robots, etc.;
At the same time, in order to satisfy other downstream customers To meet the demand for back-end treatment, the company
①Acquired the Austrian P&P company in the field of energy conservation and environmental protection to obtain waste acid treatment technology, and the related business has now achieved rapid growth;
②Launched in the field of smart logistics The intelligent information system supported by the intelligent freight transfer equipment can realize the automation of logistics warehousing, inventory and outbound delivery. At present, the company's main market is domestic. Its products are sold to all provinces and regions in China except Hong Kong, Macao and Taiwan, and exported to more than ten countries in Europe, Asia, Africa and other regions. Its downstream customers include PetroChina, Sinopec, and Global Engineering , Zhongtai Mining and Metallurgy, Junzheng Group, Yihai Kerry and other industry giants.
The company's factory buildings and production line facilities are complete, laying the foundation for building a "precision tool" for intelligent manufacturing.
In terms of production, the company has now built more than 40,000 square meters of manufacturing and assembly and commissioning workshops, with more than 100 production and processing equipment and experimental testing equipment. As of the end of 2018, the annual output value of the company's core products and supporting services for intelligent complete sets of equipment reached 413 million yuan;
In terms of research and development, the company integrates the accumulation of industrial resources and the strong disciplinary advantages of Harbin Institute of Technology, and has independently developed a number of technologies and products to fill the gap. It is blank in the country and has independent intellectual property rights. Its main product performance indicators have reached the domestic leading and internationally advanced levels. According to data from the Patent Network website, as of 2019, the company has applied for a total of 225 patents approved by the State Intellectual Property Office, including 99 utility models, 76 invention disclosures, 47 invention authorizations, and 3 designs. At the same time, the company has a considerable number of core technologies that rely on confidentiality measures to exist in the form of proprietary technologies, and the technical barriers are solid.
The company has technical authority in the industry and has been responsible for and participated in the formulation of a number of industry and national standards, including the industry standard JB/T "General Technical Conditions for Palletizers" and the national standard "Safety Requirements for Palletizers" "\"General technical conditions for palletizing robots". The company has won numerous awards and its leading position is recognized by the government and the market. The company is a nationally recognized industrialization base for the results of the High-tech Research and Development Plan (863 Plan), undertaking technology research and development and industrialization tasks for multiple major projects at the national, provincial and ministerial levels. The company’s technology center was recognized as a “National Enterprise” in 2018 Technology Center". The company is a member of the China Robot TOP10 Summit, Capek’s “Top Ten System Integrators in the General Industry”, China Robot Summit’s “Top 100 Robot System Integrators”, “China’s Top 100 Artificial Intelligence Enterprises”, and 2017 China’s Top 100 Intelligent Manufacturing Companies, and is listed on the list. Listed among the "Forbes Top 100 Chinese Companies with IPO Potential". "In addition, the company has received special financial support from the Ministry of Science and Technology and other government agencies, and has launched a number of system research and development and demonstration application projects in the fields of industrial robots and medical robots. In addition, the company holds 16.54% of the shares of Sizherui Medical (Company) to develop micro The intraperitoneal surgery robot has successfully completed the world's first 5G remote surgery.
Benefiting from the stable downstream customers in the petrochemical industry and the expansion of its business areas, the company's performance and profitability stabilized after 2015 and entered the upward trajectory of 2011. -The CAGR of the company's revenue and net profit attributable to shareholders in 2019 were 11.86% and 9.45% respectively.
Based on its original business technology and customer resource advantages, the company develops strategic emerging businesses such as product supporting services, robots, environmental protection and emission reduction, and opens up new markets in metallurgy, food, logistics and other fields. The results of business upgrades gradually became apparent after 2015, with operating income, Net profit attributable to the parent company has both achieved substantial growth. The CAGR growth rates of the company's revenue and net profit attributable to the parent company from 2015 to 2019 are expected to reach 19.43% and 15.06% respectively. According to the 2019 performance report, it is expected to achieve revenue of 1.46 billion yuan, a year-on-year increase of 59.43%; net profit attributable to the parent company is 310 million yuan, a year-on-year increase of 70.18%. New business growth potential has emerged.
4) Anche Inspection: The leader in integrated motor vehicle inspection
Shenzhen Anche Inspection Co., Ltd. was founded in Shenzhen in 2006. The company was listed on the GEM of the Shenzhen Stock Exchange in 2016 Listed (Anche Testing, 300572.SZ). The company is a major provider of overall solutions in the field of domestic motor vehicle testing and a leader in the field of integrated motor vehicle testing.
An integrated supplier in the field of motor vehicle testing, with full product line coverage and an industrial chain extending from upstream equipment to downstream operations. The company focuses on the field of motor vehicle testing and continues to innovate. Its product line comprehensively covers motor vehicle testing systems, testing industry network supervision systems, motor vehicle exhaust remote sensing detection systems, and intelligent driver testing and training systems. It can provide manufacturing and maintenance services for vehicles in the motor vehicle field. We provide comprehensive solutions covering product and system design, installation and integration, operation and maintenance, and industry supervision to various institutional customers such as , inspection, research, supervision, and driving test training. Among them, the motor vehicle inspection system solution is the company's core pillar business. In 2018, the revenue was 489 million yuan, accounting for 92.7% of the revenue, and the market share reached 12.83%. The new vehicle off-line inspection equipment in this business segment is a high-end product and is expected to be Break through the monopoly of foreign giants and achieve domestic substitution; other networked supervision systems, motor vehicle exhaust remote sensing detection systems and other businesses benefit from policy support and high industry barriers, and also have great potential.
The company actively promotes the extension of business to the downstream of the industrial chain, improves the business structure, and completes the industrial closed loop. The company has entered the downstream automobile inspection station business through a series of acquisitions in 2018. It has successively invested in Xingche Security Inspection (70%), CCIC (75%), and Shenzhen Anche Shenghui (20%), quickly acquiring inspection stations, To develop the motor vehicle market, the company has basically formed a momentum of extending from upstream equipment to downstream operations. High-quality and well-established inspection stations have obvious advantages in terms of customer source and passenger flow. In addition, the cost of inspection stations is relatively fixed. In 2018, the gross profit margin of the inspection station business acquired by the company reached 56.17%, which is 7.5pct higher than the gross profit margin of the original core business vehicle inspection system. On January 8, 2020, the company planned to acquire 70% of the equity of five Shandong Zhengzheng companies at a one-time price of 344 million yuan, further entering the second-hand car trading services and motor vehicle insurance agency business, and officially completing the closed loop of the industrial chain. The company's sales channels are well laid out in terms of distribution. As of 2018, they have covered East China, Central China, Southwest China, Northeast China, North China, South China, Northwest China and other regions.
The company has established high barriers in terms of R&D capabilities, production technology, and industrial layout. In terms of R&D and technology, the company is a national high-tech enterprise that attaches great importance to innovation. The proportion of R&D expenses in total revenue is stable between 5% and 7%. In addition, the company has established a shareholding platform company to allow the company's technical personnel to indirectly hold the company's shares. , forming a long-term incentive mechanism for employees to develop together with the company, and has now formed a relatively mature R&D process and a highly efficient R&D team. Per capita output continues to increase, engineer bonuses are fully released, and independently developed intelligent driving coach robot training Many core technologies, including system technology and motor vehicle exhaust remote sensing detection systems, lead the country. As of December 31, 2018, the company owned 61 patents and 54 computer software copyrights, as well as a number of non-patented technologies.
In terms of industrial layout, the company is one of the few domestic companies that can provide comprehensive solutions for motor vehicle detection systems, intelligent driver examination and training system solutions, motor vehicle exhaust remote sensing monitoring solutions and motor vehicle industry networked supervision system solutions. The only listed company that has laid out the entire motor vehicle inspection industry chain. The company has been rated as "China's Top 30 Auto Maintenance Enterprises", "China's Most Promising Auto Maintenance Enterprises", and "China's Auto Maintenance Science and Technology Innovation Outstanding Enterprise". The company relies on its own competitive barriers to maintain revenue growth and volume ahead of its peers.
Years of rapid performance growth and steady improvement in profitability. From 2011 to 2018, the company's revenue rose from 156 million yuan to 528 million yuan, with a CAGR of 18.97%, an increase of 3.37 times; net profit attributable to the parent company rose from 22 million yuan to 189 million yuan, with a CAGR of 28.34%, an increase of 3.37 times. 5.73 times; before 2018, the company's revenue growth rate has been higher than the revenue growth rate of motor vehicle detection systems in the same industry. It is also ahead of companies in the same industry in terms of volume and has grown at an annual growth rate of more than 25%. From 2017 to 2018, it reached a high Nearly three times that of the industry, which means that the company follows industry development and deepens its market share.
The company's gross profit margin is higher than the industry average and remains stable above 45%. It was 49.04% in 2018, an increase of 2.16pct from 2011; the net profit margin exceeded 20% after 2017 and rose steadily. In 2018 It was 23.69%, an increase of 9.68pct compared with 2011. The company's gross profit margin is expected to further increase with product upgrades driven by the improvement of independent research and development capabilities, while the increase in net profit may mean that the company's vehicle inspection industry still has room for development. According to the company's 2019 annual performance report, total operating income in 2019 was 973 million yuan, a year-on-year increase of 84.30%, mainly derived from the sales of motor vehicle inspection systems and inspection industry networked supervision systems. Net profit attributable to parent companies was 189 million yuan, a year-on-year increase of 50.51%.
5) Jincheng Pharmaceutical: Leading supplier of cephalosporin intermediates & glutathione
Shandong Jincheng Pharmaceutical Group Co., Ltd. was founded in Zibo, Shandong in 2004 and established in June 2011. Listed on the GEM (Jincheng Pharmaceutical, 300233), it is mainly engaged in the research, production and sales of pharmaceutical intermediates, biological raw materials, terminal preparations and other drugs. The company is the largest manufacturer of cephalosporin pharmaceutical intermediates in the country and the only domestic manufacturer with an approval document for glutathione API.
It started out as a pharmaceutical intermediate, and gradually extended its business to the downstream through obtaining qualifications and cooperation. The company's intermediate products include cephalosporin powder injection preparations, cephalosporin side chain intermediates, etc., which are widely used in downstream mainstream antibiotic preparations. Customers include overseas pharmaceutical giants such as India's Cavalente, Arabindo, Italy's ACS DOBFAR, as well as Qiluanti, Guangxi Kelun, Jiaozuo Livzon and other well-known domestic cephalosporin drug manufacturers. Since 2014, the company has successively acquired terminal preparation manufacturers such as Shanghai Tianchen Pharmaceutical (now Shanghai Jincheng Pharmaceutical) and Zhongshan Daobofa (Cash City Jinsu) in order to obtain approval qualifications to enter the downstream cephalosporin preparation field.
In 2016, we reached a cooperation with customer ACS DOBFAR SPA to build a closed-loop industrial chain of export of intermediates in the field of antibiotics - import of raw materials - production and sales of preparations. In 2017, the company extended its business to the field of gynecological and pediatric terminal preparations through the acquisition of Langyi Pharmaceutical (Cash Chengtel); the company also promoted the construction of a peptide-specific biopharmaceutical industry chain by acquiring scarce qualifications for specialty raw materials.
The company’s featured API products are mainly glutathione API and adenosylmethionine. Among them, glutathione is the main product. The company obtained this technology in 2009 by signing a "Technology License Contract" from Kaneka Corporation of Japan. In 2012, the company received approval from the my country Food and Drug Administration.
At present, the company has grown into a leader in the field of glutathione raw materials, and is actively exploring the application of products in downstream health products, feeds, biofertilizers and other fields; at the same time, the company is proactively deploying innovative drugs in a cooperative manner, and in 2018, it cooperated with Dongfang The company plans to reach a cooperation agreement and obtain priority rights for the domestic industrialization of projects such as the U.S. cervical cancer virus therapeutic vaccine and Toca511&TocaFC gene therapy for the treatment of malignant tumors. The application prospects of related products are broad. While the company is opening up the domestic market, it is also continuing to strengthen the expansion of new overseas customers. Its products are exported to more than a dozen countries and regions including Japan, Germany, Italy, South Korea, and India.
Obtaining rare approvals + technical resource blessings + continuous expansion of production capacity to build the company's moat.
/p>
In terms of production, the company's production capacity continues to increase. As of 2018, the company's annual output of pharmaceutical intermediates, biopharmaceuticals and specialty APIs, and pharmaceutical chemical products reached 4478.98, 219.65, and 8787.61 tons respectively;
In terms of technology, the company has national and Shandong provincial technology centers, and has established a research and development team focusing on cephalosporin pharmaceutical intermediates, biopharmaceuticals, and terminal preparations, and has cooperated with many university research institutes including Tsinghua University. Reach long-term cooperation. As of mid-2019, the company has 125 authorized patents, including 112 invention patents, 12 utility model patents, and 1 design patent.
The company’s value is recognized by the country and industry. The company is a national high-tech enterprise, a National Torch Plan enterprise, and an implementation unit of the Shandong Province Science and Technology Research Plan. The company’s “Third Generation Cephalosporin Intermediate Active Ester Key Technology and Industrialization Project” won the second prize of the National Science and Technology Progress Award in 2012. The company has been listed among the "Top 100 Chinese Pharmaceutical Industry", "Top 50 Growth Companies in China's Pharmaceutical Industry", "Top 100 Chinese Chemical Pharmaceuticals", "The Most Innovative Listed Companies", etc. The company's subsidiary Jincheng Kerui has been rated as "Top 100 Chinese Pharmaceutical Industry" by the Ministry of Industry and Information Technology. The third batch of manufacturing individual champion enterprises”.
The company’s traditional pharmaceutical intermediates business has seen steady growth over the long term, and its downstream terminal preparation business has grown rapidly. From 2010 to 2018, the company's revenue CAGR reached 18.78%, and its net profit attributable to the parent company reached a CAGR of 12.26%. The company focused on extending downstream after 2014, allowing the terminal preparation business to rapidly grow into a new pillar of the company's business, which in turn drove substantial growth in performance. The company's overall profitability is on an upward trend, and the proportion of products benefiting from high gross profit margins continues to increase. The company's gross profit margin was 50.07% in 2018, an increase of 21.25pct from 2010; the net profit margin has remained around 10% all year round. According to the 2019 performance report, the company's main business performed well during the year, the pharmaceutical and chemical sector market remained stable, and the sales of biological specialty APIs, cephalosporin injection preparations and other products also achieved steady growth compared with the same period last year. Excluding the temporary impact of impairment of goodwill of subsidiary Jincheng Taier of RMB 122 and 290 million in 2018 and 2019, the company's net profit attributable to the parent company in 2019 is expected to be RMB 421 million, a year-on-year increase of 9.12%.
Write at the end: