Exports of bulk drugs out of the trend of high growth, good for listed companies

Business News Agency June 13 News Large export demand and obvious return, so that China's export of raw material cake shed tempting fragrance, many domestic pharmaceutical companies coveted. According to IMS's forecast, China's pharmaceutical sales this year will exceed 50 billion U.S. dollars. As the international pharmaceutical market is still growing, it is expected that China's raw material drug exports will maintain a rapid growth rate of 20% this year. In the first quarter of this year, the import and export of raw material drugs in China continued to develop at a rapid rate, with total import and export volume of US$7.023 billion and export volume of US$5.363 billion, a year-on-year increase of 31.31%.

According to industry sources, in the past two years, China's exports of chemical raw materials have reversed the trend since 2008, reaching a total of 13.78 billion yuan in 2010, an increase of 22.66% year-on-year. Coupled with the increase in the price of raw materials, the shortened delivery time, and the expected appreciation of the renminbi exchange rate, factors such as the rising trend of prices of raw material medicines in 2011 were clear. At the same time, many raw material manufacturers in China have expanded their production of tight varieties. Under the double stimulation of higher prices and expansion of production capacity, the raw material medicine industry as a whole will be better this year, and the performance of related listed companies is expected to exceed expectations.

Statistics show that the number of domestic raw material medicine companies with exports exceeding 100 million has achieved a breakthrough last year, reaching 26 companies, an increase of around 30% year-on-year. The top five export pharmaceutical companies are Shenzhen Haipurui (002399), Zhejiang Pharmaceutical (600216), Zhejiang Medicines and Health Products Import and Export Corporation, North China Pharmaceutical (600812), and Weisheng Pharmaceutical Co., Ltd., with export value of 5.48 respectively. Billion US dollar, 311 million US dollars, 307 million US dollars, 223 million US dollars and 205 million US dollars, of which listed companies occupy 3 seats.

“The rise in the prices of bulk medicines is of great benefit to the relevant listed companies and the industry as a whole. After the performance of related companies began to outperform last year, it is expected to usher in more than expected expectations this year,” a senior industry analyst pointed out.

In the case of a bullish price, raw material companies have started to expand production, and the increase in production capacity will further boost the performance of related companies. However, some industry senior analysts have pointed out that domestic VC and VE have excess experience in overcapacity. Therefore, raw material companies must plan for expansion according to market demand and should not blindly follow the trend in order to avoid repeating the mistakes. (Author: Pan Min)