Known as “Maotai in medicine”, pianzi Huang (600436. SH) has been acting frequently in recent years, but it has become hot in the capital market, which has aroused the attention of the industry. On the 24th, Pian Zihuang released its third quarter report, with a net profit of 1.329 billion yuan in the first three quarters, a year-on-year increase of 19.8%. However, the brilliant performance did not lead to “high expectations” in the capital market. After the opening of trading on the 26th, pianzai Huang once touched the limit of decline. Fortunately, with the recovery of pharmaceutical sector on the 27th, the share price of pianzhechon rose by 3.95%, and the total market value was 140.669 billion yuan. < / P > < p > in fact, at present, the pharmaceutical sector is still the main revenue source of the company. According to the data of the third quarter report, the first three quarters of 2020 will have a revenue of 5.07 billion yuan, with a year-on-year growth of 16.78%. Among them, the revenue of “one core” of Pianzihuang reached 2.236 billion yuan, an increase of 27.61% year-on-year, accounting for 44.1% of the total revenue. And its cosmetics, daily chemical sector revenue of 649 million yuan, a year-on-year increase of 44.07%, accounting for 12.8% of the total revenue, also become the most powerful growth plate in the main business. < / P > < p > the reporter found that the revenue of the cosmetics sector of Pianzihuang was indeed growing, reaching 274 million yuan and 430 million yuan in 2018 and 2019, respectively, with net profits of 42.4588 million yuan and 80.9359 million yuan, accounting for 10.49% and 11.13% of the total revenue. Although the proportion of revenue is not high, the cosmetics business is the second highest gross profit product after the series products of Pianzihuang. In the first half of 2020, the gross profit rate of the drugs used for Pianzihuang liver disease was 79.49%, and that of cosmetics and daily chemicals was 64.09%. The gross profit rates of cardiovascular drugs, cold drugs and diabetes were – 4.61%, – 5.27% and – 67.1%, respectively. < / P > < p > why does pianzai Huang plan to split the cosmetics business for listing? In this regard, some people in the industry believe that, on the one hand, the profit growth rate of the series of drugs for liver diseases, which is more dependent on pianzheng, has slowed down; on the other hand, although the cosmetics business of Pianzihuang has grown rapidly, it is still immature, which depends on paying attention to it and further improving its performance. < p > < p > Guangzhou Daily all media reporter found that in the case of weak growth of a single category, pianzai Huang began to develop its cosmetics business with the help of various platforms. In 2018, pitiktok cosmetics invested 80 million yuan in new media advertising, and began to use frequent voice, red book, micro-blog and other platforms for marketing publicity. < / P > < p > in fact, China Resources medicine also chose to “quit” in the face of Pianzihuang. In August last year, Pian Zihuang announced that the company planned to transfer 51% of the equity of China Resources pianzheng held by China Resources Pharmaceutical Group Co., Ltd. at the base price of 166 million yuan. This also means that Pian Zihuang and China Resources pharmaceutical did not survive the “seven-year itch” and announced their separation in the seventh year. It is understood that the operating data of China Resources pianzai Huang is not ideal in the later period. Some people in the industry speculated that this may be the reason why China Resources medicine and Zhangzhou Pianzihuang “broke up”. However, the initiative of China Resources to cut down Huarun pianzai Huang has also been interpreted as a “singing failure” move by the outside world. < / P > < p > the reporter noticed that, like Yunnan Baiyao, Tongrentang, dong’e-jiao and other time-honored brands, in recent years, Pianzihuang is also facing difficulties such as slow performance and diversified transformation, and its repeated price hikes may no longer be widely recognized by the market. According to incomplete statistics, since 2005, the price of Pianzihuang has been increased more than ten times, from 125 yuan / grain to 530 yuan / grain in May 2017, with an increase of 324% in 12 years. It is reported that the main components of Pianzihuang granules include musk, bezoar, Panax notoginseng and snake gall. In 2005, in order to protect the wild musk deer resources, only a few traditional famous Chinese medicine varieties such as Pianzihuang were allowed to continue to use natural musk. In addition, artificial musk was used instead of other drugs. < / P > < p > “on the one hand, the price rising space of pianzhechon has become limited; on the other hand, the decrease of gross profit rate of Pianzihuang is related to the cost increase caused by price fluctuation of musk, calculus bovis and snake gall.” Some people in the industry believe that the price increase of pianzai Huang has touched the ceiling, and with the rise of raw materials and operating costs, the gross profit rate of pianzai Huang’s products may further decline. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. 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