On the evening of December 16, the Shenzhen Stock Exchange disclosed that it would focus on monitoring Xinhua Pharmaceutical (46.000,?-0.10,?-0.22%) (000756.SZ), which has experienced abnormal recent stock price increases.
Since April this year, Xinhua Pharmaceutical has experienced two rounds of speculation. The stock price has risen from about 8 yuan/share to 46.10 yuan/share?, an increase of nearly 5 times. The company’s major shareholders and senior executives also took the opportunity to reduce their holdings. Cash out.
New crown oral drugs, ursodeoxycholic acid and recently ibuprofen have put Xinhua Pharmaceutical in the spotlight. It is conceivable that products such as ibuprofen will bring considerable profits to Xinhua Pharmaceutical in the short term, but they are unlikely to last.
A reporter from the Changjiang Business Daily discovered that as an established pharmaceutical company, Xinhua Pharmaceutical is willing to pursue hot topics. Previously, the company also dabbled in the concept of medical beauty. However, the company's development has been slower. Since 2013, Xinhua Pharmaceutical has shown stable profitability. But the company's net profit margin has always been less than 6%.
It is worth mentioning that in recent years, Xinhua Pharmaceutical has frequently received fines due to environmental issues.
A major shareholder was fined for cashing out nearly 100 million yuan at a high price
Since this year, Xinhua Pharmaceutical has been in the limelight in the secondary market and can be said to have unlimited glory. However, this kind of scenery may not last.
The K-line chart shows that on April 13 this year, the stock price of Xinhua Pharmaceutical reached 8.07 yuan per share. In the previous year, the stock price K-line was flat. On April 20 and 21, the stock price closed two daily limits. From April 26th to May 13th, 11 daily limits were closed in one go. By May 30, the stock price climbed to 40.70 yuan/share.
This is the first round of surge, with the stock price rising from 8.07 yuan/share to 40.70 yuan/share, with a cumulative increase of 404.34%.
This rise is directly related to the new crown oral drugs.
On the evening of April 26 this year, Xinhua Pharmaceutical announced that on that day, the company signed a "Strategic Cooperation Agreement" with Henan Real Biotechnology Co., Ltd. (referred to as "Real Bio"), and Real Bio agreed that the company would Owns product manufacturers and distributors of Azivudine and other products in China and other countries agreed upon by both parties.
What has attracted much attention is that Azivudine is marketed as a specific oral drug for COVID-19.
On the evening of May 11, Xinhua Pharmaceutical issued a risk warning announcement. The strategic cooperation agreement signed by the company and Real Biotechnology is based on the company's strategic development needs and judgment of the industry market prospects. The future of the cooperation project There is uncertainty in the operating benefits generated. Xinhua Pharmaceutical specifically clarified that Azivudine held by Real Biotech is an anti-AIDS drug and was approved by the State Food and Drug Administration in 2021. The current new clinical trial is for anti-new coronavirus indications. The results of clinical trials of real biological treatments for this indication have not been publicly released, and this indication has not yet been approved by the State Food and Drug Administration.
In June, Xinhua Pharmaceutical’s stock price began to fall. In late September this year, it fell to about 16 yuan/share, and then began to rise slightly.
Recently, domestic anti-epidemic policies have been adjusted. Nucleic acid testing is no longer "all tests required", and Xinhua Pharmaceutical has become a hot spot again. On December 5, a research paper published by Teresa Brevini's team at the University of Cambridge in the UK showed that ursodeoxycholic acid or the plant steroid Z-Guggulsterone can downregulate the expression of ACE2 by inhibiting the FXR signaling pathway, thus Prevent COVID-19 infection. Ursodeoxycholic acid has the potential to become a preventive drug for COVID-19 and can be used as a supplement to vaccination.
Xinhua Pharmaceutical announced that the company’s wholly-owned subsidiary Shandong Zibo Xinda Pharmaceutical Co., Ltd. obtained the marketing authorization holder qualification for ursodeoxycholic acid tablets in June 2022, and its clinical indication is the treatment of cholesterol. gallstones, but has not yet been commercially produced.
As the number of infected people increases, the antipyretic drug ibuprofen is hard to find. Xinhua Pharmaceutical is popular again. Because the company is an important supplier of ibuprofen.
In response to inquiries on December 16, Xinhua Pharmaceutical stated that it was making every effort to organize the production of ibuprofen tablets, vitamin C tablets and other drugs that are urgently needed by the market.
On December 16, Xinhua Pharmaceutical’s stock price reached the daily limit again, reaching 46.10 yuan per share, a cumulative increase of nearly five times compared with April this year.
The stock price has soared, and shareholders and executives can’t sit still.
From November 10 to 14 this year, Hualu Investment, a concerted action person of Xinhua Pharmaceutical’s controlling shareholder Hualu Holding Group, reduced its holdings of 4.1432 million shares and cashed out 99 million yuan.
On November 24, due to illegal holding reduction, the Shenzhen Stock Exchange issued a regulatory letter to Hualu Investment.
In addition, Xinhua Pharmaceutical Chairman Zhang Daiming, Director Xu Lie, Deputy General Managers Wang Xiaolong, Du Deqing, Wei Changsheng, Xu Wenhui, Director and Deputy General Manager He Tongqing and Board Secretary Cao Changqiu and others announced on July 27, 2022 In the three days from July 29th to the 29th, Xinhua Pharmaceutical collectively reduced its holdings, cashing out a total of approximately 6.707 million yuan.
The net profit margin in the past 20 years has been less than 6%
The phenomenon of hard-to-find ibuprofen still exists. By going all out to produce ibuprofen, Xinhua Pharmaceutical’s operating performance is expected to increase significantly. Growth, but may not be sustainable.
Xinhua Pharmaceutical was founded in 1943 and has a history of 80 years. It entered the A-share market in 1997. The company is mainly engaged in the development, manufacturing and sales of chemical raw materials, preparations, pharmaceutical intermediates and other products. As a chemical synthesis pharmaceutical company, the company is an important global manufacturer and export base of antipyretic and analgesic drugs, and an important domestic cardiovascular and cerebrovascular enterprise. Manufacturers of medicines, anti-infectious medicines, central nervous system medicines, etc.
In terms of operating performance, Xinhua Pharmaceutical is not outstanding. In the early days of listing, from 1997 to 2001, the company's operating income was 916 million yuan, 974 million yuan, 951 million yuan, 1.044 billion yuan, and 1.099 billion yuan respectively, with no significant growth. The corresponding net profits attributable to shareholders of listed companies (referred to as net profits) were 84 million yuan, 53 million yuan, 64 million yuan, 69 million yuan, and 81 million yuan, with obvious fluctuations. From 2002 to 2004, operating income was 1.174 billion yuan, 1.328 billion yuan, and 1.511 billion yuan respectively, growing year by year. However, the corresponding net profits were 69 million yuan, 42 million yuan, and -56 million yuan, declining year by year, and in 2004, it suffered its first annual loss after listing.
From 2005 to 2014, operating income increased from 1.697 billion yuan to 3.590 billion yuan, more than doubling. In terms of net profit, except for 2009, when it exceeded 100 million yuan and reached 102 million yuan, the rest of the years were less than 100 million yuan. The net profit after excluding non-recurring gains and losses (referred to as non-net profit) was -20 million yuan and -46 million yuan in 2012 and 2013 respectively, and it was a loss for two consecutive years.
Judging from net profit data, it has achieved nine consecutive years of growth from 2013 to 2021. Among them, from 2017 to 2021, the net profits were 210 million yuan, 251 million yuan, 300 million yuan, 325 million yuan, and 349 million yuan respectively, with year-on-year increases of 71.42%, 19.68%, 17.49%, 8.30%, and 7.29%. The growth rate is slowing down year by year.
In the first three quarters of this year, the company achieved operating income of 5.453 billion yuan, a year-on-year increase of 10.39%, and net profit of 293 million yuan, a year-on-year increase of 2.84%.
A reporter from the Changjiang Business Daily found that in the 20 years since 2002, the highest gross profit margin of Xinhua Pharmaceutical was in 2019, which was 33.44%. The corresponding net interest rate is 5.76%. In the past 20 years, the company's net profit margin has been less than 6%. In the pharmaceutical industry, such net profit margins are obviously low.
In the 2021 semi-annual report, Xinhua Pharmaceutical stated that the company has always strictly complied with national environmental protection policies and regulatory requirements, and will continue to increase investment in environmental protection and promote the upgrading and transformation of environmental protection facilities. Actively carry out safety and environmental protection training and education, strengthen corporate internal control standards, strengthen monitoring of key pollution discharge points, reduce environmental risks, and achieve emission standards.
However, Xinhua Pharmaceutical has frequently received fines due to environmental violations.
On January 29 this year, Xinhua Pharmaceutical was fined 121,000 yuan by the Zibo Municipal Ecological Environment Bureau because its sewage outlets were not included in the management of sewage licenses. On February 9, Xinhua Pharmaceutical was fined 132,000 yuan by the Zibo Municipal Ecological Environment Bureau because the pollutant discharge method and discharge destination were inconsistent with the discharge permit.
In addition, on January 26, the Zibo Municipal Ecological Environment Bureau imposed a fine of 87,500 yuan on Shandong Xinhua Wanbo Chemical, a wholly-owned subsidiary of Xinhua Pharmaceutical, because the company did not conduct special operations during the heavy pollution weather in the autumn and winter of 2021. The discharge of pollutants is restricted according to the regulations of the pollution discharge permit during the period.
On February 10, Zibo Xinhua-Perrigo Pharmaceutical, a holding subsidiary of Xinhua Pharmaceutical, was fined 81,900 yuan. The reason was that in November 2021, the company had environmental violations that were inconsistent with the pollutant discharge method and discharge destination. Behavior.
In recent years, although Xinhua Pharmaceutical’s operating performance has grown slowly but is still stable, is this related to the sacrifice of environmental protection?