Tongrentang (600085): Technology companies drag on performance and quality

Tongrentang (600085): Technology companies drag on performance and quality

The event company released the semi-annual report for 2019. In the first half of 2019, the company realized operating income. The net profit attributable to the parent and the net profit after deduction were 71.

5.7 billion, 6.

6.1 billion and 6.

55 ppm, each increased by -1.

52%, 3.

33% and 3.

04%, achieving a profit of 0.

48 yuan, 0 operating cash flow per share.

78 yuan, lower than our democratic expectations.

A brief comment on the steady operation of the company, the increase in the performance of Tongrentang Technology will slow down the company’s performance growth in 2019. Product quality, standard implementation, and multiple tasks within the brand management are comprehensively sorted and investigated, exploring risk points and rectifying each item within a time limit.

Improvement, 深圳桑拿网 conversion of new general manager and deputy general manager, and gradually carry out marketing reform work. In the future, gradually reduce the level of dealers and increase cooperation with the top 100 chain product groups, driving the company’s performance growth.

The main business of the parent company is the pharmaceutical industry, which is a traditional Chinese medicine platform, and realized revenue in the first half of the year.

0.6 million yuan, an increase of 7% in ten years, and a net profit of 5.

21 ppm, an annual increase of 9%. The company’s industrial sector continues to maintain steady growth due to production capacity (the Daxing plant has realized the transfer of 268 product specifications, and the annual production of more than 400 varieties), of which the core variety Anniu continues to maintain 南京桑拿网 two quantitiesGrowth, the top five series achieved operating income.

$ 23 trillion, an average of 2 per year.

84%, the company’s overall operations are stable.

Tongrentang Technology, a subsidiary of the company, is mainly engaged in the pharmaceutical industry and is a modern Chinese medicine platform.

75 ppm, a 10-year average of 12%, net profit attributable to mothers3.

830,000 yuan, an average of 12% in ten years.

Tongrentang Technology Holdings Business Platform Tongrentang Sinopharm 38.

05% shares, excluding Tongrentang’s commercial consolidation factor, Tongrentang’s technology entities achieved net profit in the first half of the year2.

630,000 yuan, an average of 27% in ten years.

Tongrentang’s scientific and technological achievements mainly depend on: 1) Daxing and Tangshan factories replaced the new plant’s variety name, and the production capacity is temporarily insufficient; 2) After the honey incident at the end of 18, 19 years was the year of quality consolidation, and Tongrentang Technology has commissioned processingCategory projects are suspended; 3) Sales scope of core varieties.

The company’s overseas pharmaceutical business segment is operated by Tongrentang Sinopharm, the mainland

Tongrentang Sinopharm optimized its business layout in the first half of the year, covering 20 countries and regions outside China, 74 retail terminals, and realizing revenue7.

13 ppm, an increase of 14 in ten years.

7%, net profit 3.

20,000 yuan, an increase of 23 in ten years.


In the first half of the year, Tongrentang Commercial slightly expanded its retail terminals. The number of stores reached 854, an increase of 46 from the end of 18, and a revenue of 39.

48 ppm, an increase of 0 in ten years.

57%, net profit 1.

66 ppm, 10-year average4.


The mixed reforms in Beijing are expected to increase, and the century-old store is expected to reappear. Since 2019, the current progress of state-owned enterprise reform in Beijing: 1) On March 29, Wangfujing issued an announcement that the controlling shareholder Wangfujing Dongan will hold 26 of them.

73% of the equity was transferred to BTG Group for free. After the completion, the company’s controlling shareholder was changed to BTG Group, and the actual controller was still Beijing State-owned Assets Supervision and Administration Commission. 2) On April 11, e-City issued an equity incentive plan and proposed to executives.A total of 92 core backbones and business personnel were awarded 1118.

590,000 shares (accounting for 1% of the company’s share capital) at a grant price of 6.

78 yuan / share; 3) Recently, the Shanghai State-owned Capital Operation Research Institute successfully won the key paper of “Beijing State-owned Capital Investment, Operation and Governance Mechanism of Operating Companies”. The paper will combine the actual situation of Beijing-owned state-owned enterprises and propose two types of companies in BeijingSuggestions for reforming the path and measures of the pilot.
In general, since 2019, Beijing State-owned Assets-owned companies have already adopted mixed reform plans this year. We believe that the company, as the Beijing State-owned Assets Supervision and Administration Commission, has a high-quality pharmaceutical platform.
Financial indicators are basically normal In the first half of 2019, the company’s comprehensive gross profit margin reached 49.

37%, a decrease of 0 per year.

The gross profit margin of 39 shares per share was basically stable; selling expenses and management expenses increased by -6 respectively.

11%, 2.

66%, sales expense ratio and management expense ratio are 20 respectively.

02% and 9.

43%, the expense ratio realized a slight decrease; bills receivable and accounts receivable were 5 respectively.

$ 3.9 billion and 14.

9.8 billion, an increase of -51 in ten years.

59% and -1.

31%, assets ratio decreased by 3 and 0 respectively.

The 49 best, with improved operating quality; net cash flow from operating activities increased by 7.

88%, mainly due to the decrease in cash paid for purchasing goods and receiving labor services, maintaining the trend of matching cash flow with net profit.

Other financial indicators are basically normal.

Earnings forecast and investment rating We have lowered our earnings forecast and expect the company to achieve operating income of 146 in 2019-2021.

7 billion, 156.

99 ppm and 171.

9.7 billion, net profit attributable to mothers was 11.

6.9 billion, 12.

53 ppm and 13.

80 ppm, with an increase of 3 each year.

1%, 7.

2% and 10.

1% (originally expected to return to mother’s net profit was 12 respectively.

09 million yuan, 12.

8.6 billion and 13.

7.3 billion, an annual increase of 6.

6%, 6.

4% and 6.

8%), the equivalent EPS is 0.

85 yuan / share, 0.

91 yuan / share and 1.

01 yuan / share, maintain BUY rating.

Risks indicate the risks of rising raw material prices, the progress of the new production base in production, expected risks, market development, and expected risks.