Pien Tze Huang (600436): Price increases again to maintain rapid growth

The company’s recent announcement, taking into account the rising costs, the retail price of the domestic market for Pianzi tincture tablets has been raised from 530 yuan / capsule to 590 yuan / capsule, and the supply price has been increased by approximately 40 yuan / cap; the supply price in overseas markets has increased by approximately 5.

80 USD / capsule, implemented from the date of announcement.

Comments raised prices again, maintaining a rapid growth trend.

The company restarted its price increase strategy after the change of manager. Since 2016, the company’s flagship product, Pien Tsai, has increased the domestic retail price by 40 yuan in June 2016, 30 yuan in May 2017, and increased the overseas retail price in July 2017.At the same time, the company strengthened its brand promotion and achieved rapid growth.

In our opinion, the company expects to continue to maintain rapid growth in performance through this price increase.

The strategy of “one core and two wings” has begun, and the cosmetics business has grown rapidly.

The company focuses on the “one core, two wings” big health strategy, in addition to its core product Pien Tze Huang series, it has further 杭州夜网论坛 strengthened its layout in the cosmetics business.

In the first three quarters of 2019, the company’s daily necessities and cosmetics industry contributed 4 revenue.

510,000 yuan, accounting for about 10% of operating income.

4%, an annual increase of 33.


We expect that with the revival of national makeup, the company will further promote product content marketing, use content to empower brands, and realize long-term brand cash flow.

Leveraging the Pien Tze Huang Experience Hall, it continues to expand to the whole country.

At the headquarters, the company actively set up the Pianzai Experience Museum. The sites are mainly selected from domestic scenic spots, airports, train stations, and bustling commercial districts in the city. It will increase the brand influence from south to north and drive the sales of daily chemical products.

At present, the company has set up nearly 200 experience halls, and the construction area is developing in depth at the same time. Qinghai, Gansu and other provinces have achieved “zero” breakthroughs in blank markets.

With the continuous advancement of the national layout of the experience hall, we believe that the company’s brand influence in the terminal continues to extend to the field of large health, opening up growth space for the company.

We suggest that we maintain our “Outperform” rating.

We adjust our 2019/2020 profit forecast to -0 respectively.

4% / 5.

6% to 2.


86 yuan, first date 2021 profit forecast3.

47 yuan, an increase of 20 each year.

8% / 25.

1% / 21.


The latest closing price corresponds to a price / earnings ratio of 44/36 times in 2020/2021.

Taking into account the expected price increase of core products to further boost performance, raise the target price by 12% to 145 yuan, corresponding to 51/42 times price-earnings ratio of 2020/2021, with 15% upside.

The risky health product expansion effect was lower than expected.