by winston » Fri Dec 20, 2019 11:23 am
not vested
SINOPHARM(1099)
Analysis:
The company is the largest wholesaler and retailer of pharmaceutical and healthcare products and medical devices, and a leading supply-chain service provider in the PRC.
In 1H2019, the pharmaceutical distribution business of the company achieved a revenue of RMB164,700.64 million, representing an increase of 22.22% on a YoY basis, and the company successfully acquired 100% equity interest in Anhui Pharmaceutical (Group) Co., Ltd., which effectively promoted the penetration of the business network to lower-tier market in Anhui province, and further improved the company`s business share and service capability in this region.
The company keep promoting the “synergetic whole-retail” pharmaceutical business mode, sales revenue reached RMB8,841.93 million, representing an increase of 24.51% YoY.
The company has 1,009 professional pharmacies as at 30 June 2019 with network covering 30 provinces, municipalities and autonomous regions across the country.
In addition, the company vigorously developed the medical device distribution business. In 1H 2019, the medical device business of the company achieved rapid growth, with sales revenue reaching RMB29,024.79 million, representing an increase of 35.96% YoY, hence bringing significant contribution to both revenue and profit of the Group.
In the future the company will further optimize its principal business, explore its core competitive advantages , diversify its business layout and explore new business mode, in order to consolidate the status in the industry and ensure high quality development of the business through ongoing stable endogenous growth and strategic external expansion.
Strategy:
Buy-in Price: $26.00, Target Price: $30.00, Cut Loss Price: $24.30
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"