Analysis Of Investment Value Of Traditional Chinese Medicine Industry

Chinese medicine industry is China's traditional characteristic industry.In recent years,with the change of people's health concept and the promotion of Chinese medicine culture,Chinese medicine relies on natural crops to treat diseases.In addition,the Chinese medicine industry itself continues to innovate,combining traditional advantages and science and technology to launch more excellent products to inject vitality into the development of the Chinese medicine industry.The value of its investment has continued to rise and the market has continued to be optimistic.Moreover,during the Sino-US trade friction period,the value of the allocation of traditional Chinese medicine sector was outstanding,and it was less affected by international trade friction.However,from the perspective of the development of China's traditional Chinese medicine industry,the development of Chinese medicine enterprises is still insufficient.At present,the scale of Chinese medicine enterprises in China is “Olive-type”,and the scale of assets is mainly around one billion.Because the company's own research and development advantages are not outstanding,the products produced are highly homogenized and lack core competitiveness.From the perspective of secondary market performance,individual companies' stock prices and P/E ratios do not match indicators such as asset size,and market value is far from corporate value.Therefore,we should further analyze the value and investment risks of Chinese medicine enterprises,and rationally treat the development of Chinese medicine enterprises.This paper selects Yunnan Baiyao Company,which is representative and typical in the Chinese medicine industry,as the object of value evaluation,and starts the article from the following three aspects.Firstly,I objectively describe the development of Yunnan Baiyao and market value performance.Secondly,it analyzes the industry background of the industry in which Yunnan Baiyao is located,and affirms that the Chinese medicine industry has investment value.The article further combines the development status and financial status of Yunnan Baiyao to qualitatively and quantitatively divide the investment value of Yunnan Baiyao.And I use the revised P/E ratio method to evaluate the investment value of Yunnan Baibai Pharmaceutical,and explain the possible investment risks at this stage.Finally,fromthe perspective of secondary market stock investors and industry investors,the investment value of Yunnan Baiyao and even the entire Chinese medicine industry is affirmed.The article puts forward reasonable investment suggestions from the perspective of industry,enterprises and investors,and makes appropriate suggestions for the healthy and sustainable development of the Chinese medicine industry.