ZZPZH(600436) 犀牛财经·2025-04-16 03:23Core Insights - The article highlights the challenges faced by the Chinese traditional medicine company, Pianzaihuang, including slowing growth of core products, rising raw material costs, and changing policy environments, prompting the need for diversification [6][12]. Financial Performance - Pianzaihuang reported a revenue of 10.768 billion yuan for 2024, a year-on-year increase of 7.06%, and a net profit of 2.974 billion yuan, up 6.32%, indicating a significant slowdown in growth [7]. - In Q2 2024, net profit decreased by 3.11% year-on-year, contrasting with market expectations for rapid growth [7]. - The company's revenue growth for 2023 was only 15.69%, with net profit growth dropping to 13.04%, well below the previous average of over 20% [8]. Pricing Strategy and Market Dynamics - Pianzaihuang has raised prices of its products 21 times since 1999, with the price of its pills increasing from 115 yuan to 760 yuan per pill, a nearly sixfold increase [7]. - However, the acceptance of high-priced medications has reached a bottleneck, with reports indicating that the market price for some products has fallen below 500 yuan per pill [8]. Raw Material Dependency - The company relies heavily on raw materials, with over 90% of costs attributed to natural musk and cow bile, whose prices have surged significantly since 2019 [8]. - The price of natural cow bile rose from 350,000 yuan per kilogram in 2019 to 1.65 million yuan per kilogram in 2025, a 371% increase [8]. Diversification Strategy - Pianzaihuang's "one core, two wings" strategy aims to extend its core pharmaceutical business into cosmetics, health products, and medical devices, but progress has been slow [9]. - The cosmetics segment generated only 707 million yuan in revenue in 2023, and plans for a separate listing have faced regulatory delays [9][10]. Acquisition Attempts - The company attempted to acquire a stake in Mingyuan Fragrance to enhance its health product portfolio, but the acquisition faced scrutiny and was postponed [10]. Research and Development - Pianzaihuang's R&D expenditure was only 232 million yuan in 2023, representing just 2.31% of revenue, significantly lower than leading pharmaceutical companies [11]. - The company has potential new drugs in its pipeline, but the lengthy approval process means they are unlikely to contribute to short-term performance [11]. Supply Chain Initiatives - To address raw material shortages, Pianzaihuang is establishing breeding bases for musk deer and planting medicinal herbs to alleviate supply pressures [13]. - Recent regulatory changes may allow the import of cow bile, potentially easing supply constraints [13]. Market Valuation - The company's dynamic price-to-earnings ratio has decreased from 167 times in 2021 to 40 times, indicating a market reassessment of its business model [15]. - The challenges faced by Pianzaihuang reflect a broader strategic dilemma between maintaining the "scarcity value" of traditional medicine and pursuing market expansion [15].