ZZPZH(SH:600436) Jing Ji Guan Cha Wang·2025-04-28 02:28Core Viewpoint - The report highlights the financial performance of Pizhou Huang (片仔癀) in 2024, indicating a net profit of 2.977 billion yuan, with a growth rate of 6.42%, which is close to the level seen in 2015. The company faces challenges due to rising prices of key medicinal materials, particularly musk, cow bile, and snake gall, which are expected to exert cost pressure on its product line in the future [1][2]. Group 1: Financial Performance - Pizhou Huang achieved a net profit of 2.977 billion yuan in 2024, reflecting a growth rate of 6.42% [1]. - The company has implemented price increases for its products to offset rising raw material costs, with the price of its pill form rising from 590 yuan to 760 yuan per unit in 2023 [2]. Group 2: Raw Material Costs - The prices of key raw materials, such as natural cow bile, have seen significant increases, with the price rising from 570,000 yuan per kilogram at the beginning of 2023 to 1.7 million yuan per kilogram by early 2025, marking a 198.25% increase [1]. - The supply of natural cow bile is under pressure due to high demand and limited domestic production, with an estimated annual demand of 5,000 to 6,000 kilograms against a domestic production of only about 900 kilograms [3]. Group 3: Market Dynamics - The recent policy changes allowing the import of cow bile are expected to alleviate some supply constraints, with a pilot program set to begin in April 2025, allowing imports from countries free of mad cow disease [4][5]. - The pilot program aims to balance the market prices of medicinal materials and ease the pressure on pharmaceutical manufacturers facing raw material shortages [5]. Group 4: Strategic Responses - Pizhou Huang plans to strategically procure and reserve key raw materials to manage costs effectively, as the company anticipates continued high prices for cow bile despite the new import policies [6].