Shanghai Kai Bao capacity release to promote rapid growth

Shanghai Kai Bao (300039) for the domestic Chinese herbal medicine injection leading enterprises, we expect the company 2010-2012 earnings per share of 0.69 yuan, 0.98 yuan and 1.18 yuan, the corresponding dynamic PE is 45.68 times times, 32.13 times times and 26.45 times times.　　In view of the company's growth is better, and leading products phlegm-heat injection is a hand-foot mouth seriously ill drug use, very likely in the foot and mouth disease epidemic volume, so we believe that the company has a more positive investment value, give "recommended" investment rating, suggest future close attention. Company to the modernization of traditional Chinese medicine as a long-term development direction, in order to constantly develop high-tech, enhance the sustainable development of enterprises as a strategic approach to "good faith to do medicine, medicine to save people" as the core values of enterprises.　　The company continuously strengthens the enterprise culture construction and the talented person training, the sincere service, realizes the sustainable development, strives to become has the product research and development, the technology innovation, the market development, the talented person management and so on many advantages well-known High-tech enterprise, develops becomes "the customer trust, the staff love, the social respect, the Heat-clearing and detoxification of Chinese herbal medicine injection market growth, phlegm-hot clear injection is the top, 2006-2008 China's heat and detoxification type of Chinese medicine injection Market size of the annual composite growth rate of 28.12%.　　In recent years, the type of heat-clearing and detoxification in the market is relatively stable, and the most critical problem of the use of Chinese medicine injections is safety, so doctors and patients in the choice of drugs is more concerned about the quality and efficacy. Company-leading products tanreqing injection is a national patent products, the national Traditional Chinese Medicine two new drugs, quality, stability, effective, with heat-clearing and detoxification, phlegm to relieve spasm of the role of virus and bacterial infection has a unique effect, and adverse reactions are very small, the incidence of adverse reactions in 2007 is rare.　　Therefore, the company's leading products in the heat-clearing and detoxification of traditional Chinese medicine injections in the advantages of more obvious, 2008 market size of 43.5 million yuan, in the heat-clearing and detoxification type of Chinese medicine injections in the first; phlegm heat clear containing endangered medicinal herbs, the state currently strictly control the registration of endangered medicinal drugs, so New plant capacity will be released in May, phlegm-heat clearing capacity bottleneck is about to break through.　　Company Products tanreqing Injection 2007 years later into a rapid growth period, product demand, 2008 insufficient capacity began to appear. In order to meet the growing market demand, the company expanded tanreqing injection production line in 2009, the new production line design capacity of 45 million/year, has passed GMP certification, is expected to be put into production in May, 2010 years can produce 29 million, 2011 is expected to reach 380.039 billion,　　2012 up to 45 million production. In addition, the company's efforts to lay the upper reaches of the industrial chain to fight for initiative.　　The main raw materials of the company's products are resource-type medicinal herbs, mainly through outsourcing, the company not only actively take measures to reduce the risk of concentration of suppliers, but also plans to acquire bear enterprises to complete the upstream control of the industrial chain.Performance growth, profitability promotion. Company in the first quarter of 2010 to achieve operating income of 108.7709 million yuan, the same period increased 4.19%; Net profit of 16.1123 million yuan, growth of 30.8%, mainly the company's brand in the market influence increase, the volume of business increase, and the company's self-made semi-finished product yield increase, Cost of products decreased, operating costs fell 2.29% per cent year-on-year, the cost of the company period decreased, compared to 2009 down 4.62%, the sales cost rate is 1.19% lower than 2009, the management cost rate is lower than 2009 2.68%; Mainly due to the raising of funds deposit interest.