After the Chinese patent medicine Pien Tze Huang lozenges were once hyped to thousands of yuan, and the total market value of Pien Tze Huang was close to 300 billion yuan, the share price of Pien Tze Huang began to fall all the way.
On October 24, Pien Tze Huang's stock hit the limit down, closing with a total market value of 139.7 billion yuan.
On October 28, Pien Tze Huang closed at 228.23 yuan, with a total market value of 137.7 billion yuan.
On July 21, 2021, the closing price of Pien Tze Huang reached 486.76 yuan per share, corresponding to a total market value of 295.481 billion yuan.
In more than a year, the market value has evaporated by more than 150 billion yuan.
Behind the recent stock price drop, Pien Tze Huang experienced a decline in performance for the first time in the third quarter of this year.
Data show that Pien Tze Huang’s operating income in the third quarter was 2.193 billion yuan, and the net profit attributable to shareholders of listed companies was 738 million yuan, down 3.08% and 17.64% year-on-year respectively.
Behind the decline in performance, Pien Tze Huang has been sorting out the hype in the market since last year.
The Beijing News Shell Finance reporter recently discovered that Pien Tze Huang, which was once fired for over 1,000 yuan, has begun to fall back to around the official price of 590 yuan per tablet.
Most of the Pien Tze Huang pharmacies sold online set the price at around 600-800 yuan.
The price of Pien Tze Huang has generally dropped, and the official store is no longer restricted
On October 27, the Beijing News Shell Finance reporter searched online shopping platforms such as JD.com and Taobao to see that the official flagship store price of 1 tablet of Pien Tze Huang is 590 yuan per tablet.
The difference from last year is that at present, Pien Tze Huang's official drug purchase channels are not out of stock, and consumers can buy Pien Tze Huang lozenges at the official price of 590 yuan.
In addition to flagship stores, there are still pharmacies selling Pien Tze Huang lozenges online, with prices ranging from the official price of 590 yuan to thousands of yuan, and most of them set the price at around 600-800 yuan.
A small amount of the price exceeds 1,000 yuan, and the transaction volume is basically zero.
The reporter noticed that on the Internet sales platform, most of the 1 tablet lozenges still priced at over 1,000 yuan are the Hong Kong version of Pien Tze Huang.
According to media reports, at the beginning of Pien Tze Huang's listing in 2003, the average price per capsule was about 102.76 yuan.
Since its listing, Pien Tze Huang has raised prices many times.
In January 2020, Pien Tze Huang announced that in view of the increase in the main raw materials and labor costs of Pien Tze Huang products, the company decided to increase the domestic market retail price of Pien Tze Huang tablets, the company's leading product, from 530 yuan / capsule to 590 yuan / starting from the date of the announcement. grain, the supply price will be increased by about 40 yuan / grain accordingly.
Pien Tze Huang said that the reason for the continuous price increase is basically the increase in raw material prices and labor costs.
According to public information, Pien Tze Huang lozenges are mainly composed of bezoar, musk, notoginseng and snake gall, and are also called "antibiotics in traditional Chinese medicine" by many people.
It is understood that the management of musk, the main raw material of Pien Tze Huang, is very strict. The state requires that all Chinese patent medicines containing natural musk ingredients be produced and sold to implement the special labeling system for the management and utilization of wild animals in China.
In July 2005, the state also clearly required other Chinese patent medicines not listed in the No. 3 Announcement not to use natural musk, but to use the same amount of artificial musk instead.
In June 2021, the prices of Pien Tze Huang's products have soared, and under the hype of scalpers, it once exceeded thousands of yuan, and there were also cases of out of stock.
When the hype was in full swing, the price of 10 Pien Tze Huang tablets per box was close to tens of thousands of yuan.
Affected by the market hype, Pien Tze Huang's share price and market value also experienced a roller coaster.
On June 24, 2020, Pien Tze Huang's closing price was 167 yuan per share, with a total market value of 99.7 billion yuan.
On July 21, 2021, Pien Tze Huang's closing price was 486.76 yuan per share, with a total market value of 295.481 billion yuan.
On October 28, 2022, Pien Tze Huang's closing price was 228.23 yuan, with a total market value of 137.7 billion yuan.
The hype went out and the stock price fell, while Pien Tze Huang's performance also declined.
Behind the double drop in revenue and profit in the third quarter, the gross profit margin of Pien Tze Huang's various businesses declined
On October 22, Pien Tze Huang disclosed its third-quarter report, showing that the company's third-quarter operating income was 2.19 billion yuan, and the net profit attributable to shareholders of the listed company was 738 million yuan, down 3.08% and 17.64% year-on-year respectively.
After the hype event in 2021, Pien Tze Huang's revenue and profits will both achieve high growth in 2021.
Data show that in 2021, Pien Tze Huang’s total operating income was 8.022 billion yuan, a year-on-year increase of 23.2%, and the net profit attributable to shareholders of listed companies was 2.431 billion yuan, a year-on-year increase of 45.46%.
The performance decline in the third quarter of this year is also the first quarter for Pien Tze Huang to experience negative growth in performance.
On the whole, Pien Tze Huang’s performance in the first three quarters was still on the rise, with operating income of 6.616 billion yuan, a year-on-year increase of 8.25%, and net profit attributable to shareholders of listed companies of 2 billion yuan, a year-on-year increase of 2.04%.
Prior to this, the growth rate of Pien Tze Huang's performance has slowed down year by year.
From 2017 to 2020, Pien Tze Huang's operating income was 3.714 billion yuan, 4.766 billion yuan, 5.722 billion yuan, and 6.511 billion yuan, up 61%, 28.33%, 20%, and 13% year-on-year, respectively.
From 2017 to 2020, Pien Tze Huang's net profit attributable to shareholders of the parent company was 800 million yuan, 1.143 billion yuan, 1.374 billion yuan, and 1.672 billion yuan, respectively, up 50%, 41%, 20%, and 21% year-on-year. The gross profit margins of sales were 43.26%, 42.42%, 44% and 45% respectively.
So, where is Pien Tze Huang's performance in the third quarter "injured"?
Judging from the main operating data for the first three quarters disclosed by Pien Tze Huang on October 21, the decline in Pien Tze Huang’s profits was largely due to the decline in gross profit margins of various segments, as well as the decline in revenue from the cosmetics and daily chemical industries.
The data shows that Pien Tze Huang’s income composition mainly includes pharmaceutical manufacturing industry, pharmaceutical distribution industry, cosmetics and daily chemical industry.
In pharmaceutical manufacturing, it is divided into liver disease drugs, cardiovascular and cerebrovascular drugs and other sectors.
In the first three quarters of 2022, Pien Tze Huang's liver disease drug business revenue was 2.97 billion yuan, a year-on-year decrease of 0.7%, and the gross profit margin was 80.34%, a year-on-year decrease of 1.58 percentage points.
In addition, in the first three quarters, the revenue of Pien Tze Huang's cosmetics and daily chemical business was 460 million yuan, a year-on-year decrease of 17.54%, and the gross profit margin decreased by 9.39 percentage points to 61.68%, becoming the business segment with the fastest revenue decline.
For Pien Tze Huang, whose core products are relatively simple, the cosmetics business has been the focus of development in recent years, and Pien Tze Huang has also been planning to spin off its cosmetics segment and list it.
According to Pien Tze Huang’s 2021 annual report, the company has completed the selection and preliminary due diligence of the listing sponsor of its holding subsidiary Fujian Pien Tze Huang Cosmetics Co., Ltd., and has promoted the equity transfer and asset delivery of other affiliated subsidiaries in accordance with the independence and normative requirements of IPO companies. .
Pien Tze Huang adopts various means to hedge market speculation
For Pien Tze Huang, an important factor affecting the performance of the first three quarters of 2022 is to increase the proportion of online sales in order to hedge against the phenomenon of Pien Tze Huang tablets being hyped in the market.
On June 25, 2021, Pien Tze Huang publicly stated that it will take a series of measures to resolutely maintain the market order. "One is to stabilize the supply. The company will do a good job in product production and supply, and increase the support for self-operated channels and mainstream chain pharmacy channels. The second is to expand sales channels. The online sales of Pien Tze Huang, the flagship pharmacy of Tmall, have been launched, and the layout of the flagship store on JD.com has been accelerated. to meet the diverse needs of consumers.”
The Beijing News Shell Finance previously reported that after the hype, most dealers received notices from Pien Tze Huang manufacturers and could not sell Pien Tze Huang tablets and Pien Tze Huang capsules online.
On Taobao, JD.com and other platforms, Pien Tze Huang lozenges originally sold have been removed from the shelves one after another.
Such measures are continuing.
Pien Tze Huang also stated in the 2021 annual report that it will continue to consolidate the results of special rectifications to curb hype behavior and related bad atmospheres, continue to guide partners to standardize their operations, promote the construction of informatization and flow management, and continuously improve and fulfill the daily reward and punishment mechanism, and improve the marketing system. and processes to maintain the healthy and stable development of the market.
So, has the market really returned to rationality?
According to Pien Tze Huang's annual report, the company's sales channels are divided into domestic sales and overseas sales. The main modes of domestic sales are pharmacy sales and theater sales, among which pharmacy sales are the main ones.
According to Pien Tze Huang’s previous announcement, the company has also set up a special inspection team, led by company executives to carry out the operation compliance inspection activities of the experience halls in the province, and set up a mobile inspection team to expand the inspection scope to the national experience halls and dealers, and resolutely crack down on the market Price speculation and other behaviors will further strengthen market supervision and control.