CR Pharmaceutical (3320.HK): Market Leader in Pharmaceutical Distribution and Manufacturing with Integration Synergies November 29, 2017 765

Investment Highlights

  • Integration synergies with main subsidiaries;
  • M&A driving future growth through external expansion;
  • Enhancing product R&D development capabilities and optimizing distribution network;
  • Favorable policy environment facilitating market leader to improve industry concentration.

Business Overview

China Resources Pharmaceutical (CR Pharma) is a leading pharmaceutical company in China. It is committed to distribution, manufacturing and retail of pharmaceutical and healthcare products in PRC. The company was established in 2007 and now becomes the second largest pharmaceutical manufacturer and the second largest distributor in China. In Oct 2016, the company was listed on HK main board. From 2013 to 2016, CR Pharma achieved revenue CAGR of 10.25%, and net profit CAGR of 2.25%. Distribution, Manufacturing and Retail businesses respectively accounted for 83.2%, 14.3% and 2.5% in 2016 revenue, with average gross profit margins of 6.61%, 58.33% and 21.21% respectively.

About the author

Profile photo of Eurus Zhou

Eurus Zhou
Phillip Securities (HK)

Graduated from Hong Kong Polytechnic University, Master of Finance (Investment Management). Possess bachelor degree majoring in Financial Management from Southwestern University of Finance and Economics. Focus on industry prospect and corporate fundamentals to explore investment value and cover pharmaceutical and consumer industry.

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