Kangmei Pharmaceutical’s traditional Chinese medicine preparation business revenue and growth rate
The compound growth rate of traditional Chinese medicine preparation pieces in the past 10 years has been as high as 26. We predict that the scale of the traditional Chinese medicine preparation industry will reach 270 billion yuan in 2018 , but the industry is relatively fragmented, and the company's market share as the industry leader is only 3. We judge that industry concentration will continue to increase in the future. The company entered the Chinese herbal medicine piece market in 2002 and is one of the earliest domestic manufacturers to enter the Chinese herbal medicine piece industry. At present, the company has 11 production bases in Guangdong, Beijing, Jilin, Sichuan, Anhui and other places, with a complete range of products. It can currently produce more than 1,000 varieties and more than 20,000 specifications.
Market size of traditional Chinese medicine slices (100 million yuan) 2007-2018E
According to the latest data from the Ministry of Industry and Information Technology, among the various sub-sectors of the pharmaceutical industry in the first half of 2017, the revenue of the traditional Chinese medicine slice processing industry grew fastest. A year-on-year increase of 21.33%, the output value reached 104.788 billion yuan, and the profit growth was only lower than that of biopharmaceutical manufacturing. In the ten years from 2006 to 2016, the average growth rate of traditional Chinese medicine pieces reached 26.25, leading the growth of the entire industry. Its retail market sales in 2016 increased by 17.7% year-on-year to 23.132 billion yuan, making it the fastest growing category in retail drugstores.
Number of Traditional Chinese Medicine Pieces Manufacturing Enterprises 2006-2015
Market Share of Traditional Chinese Medicine Pieces 2015
Due to rapid growth and policy tilt, the concentration of the Chinese Medicine Pieces industry is extremely low. As the absolute leader in the traditional Chinese medicine slices market, the company's revenue from the traditional Chinese medicine slices segment reached 6.158 billion yuan in 2017, with a market share of less than 3%. There are no patent protection barriers in the traditional Chinese medicine piece market. There are more than a thousand manufacturers, but most of them are small and medium-sized enterprises with a scale of only one million to ten million. A market that lacks patent technology protection. In the long run, product quality and channels will definitely win. We estimate that the next 5-10 years will be a period of major reshuffle in the industry and an increase in overall concentration.
The prescription traffic of smart pharmacies is growing rapidly
In June 2015, the company cooperated with the Guangdong Provincial Hospital of Traditional Chinese Medicine to launch a "smart pharmacy" in Guangzhou. Since its launch, the business has grown rapidly and is currently in Guangzhou. , Shenzhen, Beijing, Chengdu, Kunming, Puning and other places have comprehensively promoted the implementation, and have cooperated with Guangdong Provincial Hospital of Traditional Chinese Medicine, Shenzhen Municipal Hospital of Traditional Chinese Medicine, Guang'anmen Hospital of the Chinese Academy of Chinese Medical Sciences, Beijing Hospital of Traditional Chinese Medicine, Affiliated Hospital of Chengdu University of Traditional Chinese Medicine, Kunming Hospital of Traditional Chinese Medicine, etc. It has established long-term cooperative relationships with 2,000 medical institutions and about 200,000 pharmacies. The daily prescription volume reaches up to 26,000, and the cumulative number of prescriptions processed reaches 3.8 million. It serves more than 25,000 outpatient doctors and approximately 1.35 million patients. In the future, the company will increase investment in "smart pharmacies" and comprehensively and rapidly promote the implementation of "smart pharmacies" in various places. At the same time, it will actively start the construction of central pharmacies in more cities such as Guiyang, Chongqing, Xiamen, Meihekou, etc., and gradually form a central pharmacy in urban agglomerations. Pharmacy, maintain the first-mover advantage and quickly form the company's leading position in the field of mobile medical services.
Since 2015, Kangmei Pharmaceutical has cooperated with governments in many places on smart pharmacies
In less than three years since its implementation, smart pharmacies have blossomed all over the country, and the business growth is very obvious. It is expected that the follow-up With the company's accelerated investment and market development, the progress of Kangmei Smart Pharmacy will further accelerate in 2018/19. The company established Chengdu Kangmei Smart Pharmacy Co., Ltd. in February 2017 and Kangmei Smart Pharmacy (Yunnan) Co., Ltd. in October 2017 to enter the Sichuan and Yunnan markets respectively, but neither project expansion has been implemented. According to subsequent strategic cooperation agreements between the company and the governments of Chongqing (Chongqing: As of March 31, 2018, the smart pharmacy decoction center has entered the construction stage, and other projects are actively being promoted), Guiyang City, Gansu Province and other governments, the company will More provinces and cities are developing smart pharmacy business, which will bring considerable incremental market and huge potential.
Kangmei Pharmaceutical’s Traditional Chinese Medicine Pieces Base Layout
Kangmei Pharmaceutical’s Traditional Chinese Medicine Pieces production capacity ranks first in the country and currently has facilities in Guangdong, Beijing, Shanghai, Sichuan, Jilin, Anhui, Gansu and other places There are 11 traditional Chinese medicine pieces production lines in use and under construction, with a designed production capacity of about 54,000 tons. The Shanghai Pieces Factory project has reached 90% and is close to completion. After being put into operation in the near future, the total production capacity will reach 60,000 tons, and full production can support nearly 10 billion. sales. At the same time, the company launched a 6,000-ton formula granule project in Puning City, Guangdong in 2016, and is expected to gradually release production capacity in the next two to three years.
Statistics on Production Capacity Projects in the Traditional Chinese Medicine Formula Granules Market
On March 1, 2016, the "Measures for the Administration of Traditional Chinese Medicine Formula Granules (Draft for Comments)" has ended its public solicitation of opinions. The current formula The production qualifications for pellets are gradually being liberalized on a pilot basis. The latest announcement shows that the company has been approved as a pilot enterprise for traditional Chinese medicine formula granules in Guangdong Province and is in the pilot scale-up and launch preparation stage for 202 varieties of traditional Chinese medicine formula granules. In addition, the company's original base production capacity is also relatively flexible. If the market expansion goes smoothly, it can significantly increase production capacity in two shifts to ensure sufficient supply. The company's completed 6,000-ton production capacity project is ready to be put into production at any time. Once it is launched, the company will use its strong channel strength such as smart pharmacies to quickly increase sales. After that comes the medical device business, pharmaceutical business, finance and valuation analysis.