Yunnan Baiyao (000538): Clearing channel inventory performance meets expectations

Yunnan Baiyao (000538): Clearing channel inventory performance meets expectations

The event company released the 2018 annual report. In 2018, the company achieved operating income.

08 million yuan, 33.

07 ppm and 29.

1.8 billion, an increase of 9 each year.

84%, 5.

14% and 4.

91%, realized profit 3.

18 yuan, on the one hand, operating cash flow2.

53 yuan, basically in line with our navy’s expectations.

The company plans to use the total share capital at the end of 201810.

4.1 billion shares are the base number, and a cash dividend of 20 per 10 shares is distributed to all shareholders.

00 yuan (including tax), a total of 20 cash dividends were distributed.

8.2 billion.

Brief comment on streamlining channel inventory and overall steady growth. In 2018, the company’s pharmaceutical division realized operating income of 45.

30 ppm, an increase of 2 per year.


We estimate that the company ‘s pharmaceutical business unit made a slight change in the first three quarters by cleaning up the channel inventory, and the pharmaceutical business unit in the fourth quarter of 2018 achieved a recovery.

Benefiting from the 2018H1 drug price increase, the parent company’s profit-side growth rate in 2018 was 18%, exceeding the income-side growth rate by 10%.

In 2018, the company’s health products division achieved operating income44.

67 ppm, a ten-year increase4.


We estimate that the company’s health product channel inventory control is good and the terminal growth rate is good. Step by step, we can see that the health product has a certain degree of control over delivery.

In 2018, the company’s Chinese Medicine Resources Division achieved revenue13.

67 ppm, an increase of 20 in ten years.


In terms of products, in 2018, the company launched new product systems covering natural pectin, concentrated stock solutions, compound fruit and vegetable fermentation drinks, and health creams.

Exploring new retail models on channels, expanding 8 physical stores, and building self-operated channels to mainly expand online sales platforms.

The new product + new retail model is expected to ensure that the business unit will continue to grow in the future.

In 2018, the provincial pharmaceutical company realized operating income of 163.

33 ppm, an increase of 12 in ten years.


Commercial sector companies are closely surrounding the market and actively respond to changes.

Gradually establish joint ventures with small and medium-sized distributors at the county level in the province to continue to cultivate the Yunnan market to increase market share, transform, implement customized services for medical institutions at and above the county level, and effectively consolidate existing channel advantages.

In addition, the company actively explores the market of hospital stores, undertakes the business of hospital stores, undertakes the market share of prescription outflows, explores new models such as slow / special disease medical insurance pharmacies and DTP pharmacies to help the development of the pharmaceutical business sector.

Adhere to high dividends and continue to give back to shareholders in 2018, the company plans to use the total share capital of 10 at the end of 2018.

4.1 billion shares are the base number, and a cash dividend of 20 per 10 shares is distributed to all shareholders.

00 yuan (including tax), a total of 20 cash dividends were distributed.

820,000 yuan, the remaining undistributed profits are reserved for future years.As of the end, the company has received dividends from shareholders and investors for 24 consecutive years, and has become one of the listed companies with the highest shareholder returns in Shanghai and Shenzhen. Long-term holdings will yield generous returns.

Expenses are better controlled, 杭州桑拿养生会所 financial indicators are basically normal in 2018, and the company’s comprehensive gross profit margin is 30.

55%, a decrease of 0 from the middle report.

64 units, mainly due to the increase in the proportion of low-gross commercial income, the industrial gross profit margin is normal, and the sales expense expenditure14.

68%, a decrease of 0 per year.

47 units.

Management expenses

17%, a decrease of 0 per year.

Forty-two in total, the cost was better controlled; the amount of accounts receivable increased by 50.

22%, mainly due to the increase in receivables of the provincial pharmaceutical company; inventory increased by about 1.4 billion, mainly due to the increase in the inventory of provincial pharmaceutical companies; the net cash flow from operating activities increased by 127.

55%, mainly due to bills receivable, the cumulative increase in cash flow faster than the increase in expenditure.

Net cash flow from operating activities matches net profit.

Other financial indicators are basically normal.

Earnings forecast and investment rating In the short term, the company has absorbed and passed the review of the Securities Regulatory Commission. The employee shareholding plan has been voted through the shareholders’ meeting in an attempt to welcome the restored growth after the channel adjustment. In the long term, the implementation of major asset restructuring will injectThe new vitality brings continuous improvement of the integrated incentive mechanism and the development of outreach M & A, opening a new chapter in the development of the company.

We expect the company to achieve operating income of 265 in 2018-2020.

05 ppm, 300.

04 ppm and 341.

6.3 billion, net profit attributable to mothers was 33.

9.1 billion, 38.

06 ppm and 43.

1.3 billion, an increase of 7 each year.

8%, 12.

2% and 13.

3%, equivalent to 2 respectively.

66 yuan / share, 2.

98 yuan / share and 3.

38 yuan / share, maintain BUY rating.

Risks prompt fierce competition in the consumer goods industry; new shareholders and management team run in longer than market expectations; outbound M & A progress and intensity are difficult to predict;