Shouxiangu(SH:603896) Zheng Quan Zhi Xing·2025-06-20 09:43Core Viewpoint - The credit rating for Zhejiang Shouxiangu Pharmaceutical Co., Ltd. remains at AA- with a stable outlook, reflecting the company's strong brand advantage and stable cash flow from its full industry chain development model [4][6]. Company Overview - The company primarily engages in the breeding, planting, processing, and sales of traditional Chinese medicinal materials, particularly focusing on Ganoderma lucidum and Dendrobium [6][9]. - As of 2024, the company's total assets are reported at 31.16 billion, with equity attributable to shareholders at 23.53 billion [4][5]. Financial Performance - In 2024, the company's operating revenue decreased by 11.81% year-on-year, with the main products, Ganoderma lucidum spore powder and Dendrobium, accounting for over 80% of total revenue [16][18]. - The gross profit margin for the company in 2024 was 82.62%, slightly down from 84.43% in the previous year, primarily due to rising raw material costs and increased depreciation [16][18]. Debt and Investment - The company has issued bonds with a total scale of 3.98 billion, with the proceeds intended for the construction of health food projects and a research and testing center [8][9]. - A change in the use of funds has been noted, with a shift from the original project to a smart park upgrade project, which aims to enhance operational efficiency through automation [9]. Market Position and Competition - The company maintains a competitive edge through its full industry chain model and established brand recognition, although it faces challenges from a concentrated product range and regional sales [6][18]. - The sales distribution remains heavily concentrated in Zhejiang Province, with over 60% of revenue generated from this region, indicating a high regional sales concentration risk [18][19]. Industry Environment - The pharmaceutical manufacturing industry is expected to stabilize and improve in the medium to long term, driven by increasing healthcare demand and ongoing policy adjustments [12][13]. - The market for traditional Chinese medicine, particularly in the context of an aging population and rising health awareness, is projected to grow, although the industry faces challenges from price reductions and regulatory pressures [12][14].