A Value Assessment Of HENG RUI Medicine Co., Ltd

Nowadays,'Difficult to see a doctor,Housing difficulties,School difficulties' is the new 'Three big mountains' that placed in front of us.The Medical care,housing and education are three of the people's livelihood,which is directly related to the interests of everyone.The three major aspects of reform are in progress with Reform and opening up in the past three decades,but compared to China's rapid economic development,the reform process seems slow and ineffective.In health care,the State Council reported 'China's medical reform was not successful.'Since China's Reform and opening up in 1978,the pharmaceutical industry have an average annual growth rate of 16.6%,becoming one of the fastest-growing sectors in national economy,it's faster than the world's leading pharmaceutical major countries. Jiang Su HENG RUI Medicine Co.,ltd.as a combination of scientific research, production and sales of large listed companies of Chinese medicine,is the largest Anti-neoplastic drugs research and production base,Anti-neoplastic sales ranked first in China,the national fixed-point anesthesia pharmaceutical manufacturers.There are more than 60 companies listed in the domestic pharmaceutical manufacturing,only 5-6 companies own the market value more than 10 billion.HENG RUI Medicine is the highest market value of the domestic market,better development of medical manufacturing companies.Therefore,this article selected it as a specific case,through the development process of the company,the operating situation and financial statements analysis,research the value of their investment.In this paper,we firstly analysis the macro-economic environment through some main variables;followed analysis the characteristics and current status of Chinese medicine manufacturing industry;Finally with the operations and key financial indicators of Jiangsu HENG RUI Medicine Co.,ltd.through appropriate financial forecast,using three-stage free cash flow model and P/E method to assess the enterprise value.In this paper,data derived from company annual reports,government web sites and related research institutions,the study found that HENG RUI Medicine is a well-run enterprise and good business prospects.Is therefore attracts the investors' attention,to buy and to be long-term holders,to share the benefits of rapid growths.