Study On The Profitability Of FOSUNPHARMA

The pharmaceutical industry is an important foundation for supporting the development of medical and the health service industry.also playing an active role in benefiting the people and Economic growth.In recent years,China has attached great importance to the development of the pharmaceutical industry and put a new premium on people's health and happiness.As a leading enterprise,FOSUNPHARMA covers the whole pharmaceutical industry.At the moment when the pharmaceutical industry is facing a reshuffle,it is important to study the profitability of FOSUNPHARMA.In this paper,FOSUNPHARMA as a case study,vertical research and horizontal comparative research combined.Firstly,the profitability of FOSUNPHARMA from 2013 to 2017 was analyzed from the perspectives of operating income,operating profit,cash flow,etc.in combination with Dupont analysis method.Then we analyze the profit quality of from the perspectives of growth,The ability to convert profit into cash and sustainability.In addition,the paper evaluates profitability from industry development and company development.The evaluation of company development uses factor analysis method.And contrasts with HENGRUI PHARMA.Finally,the R&D capability which has important influence on profitability is analyzed.By studying this paper conclude that the current profitability of FOSUNPHARMA is in the middle of the industry,but its factor score has increased year by year in the past five years,and its ranking in the industry has also increased.The pharmaceutical industry has a good development prospect.FOSUNPHARMA's current financial performance is good,and its strong R&D strength lays a foundation for the improvement of profitability in the future.Based on its development strategy,FOSUNPHARMA is likely to become a powerful enterprise like Johnson & Johnson in the future,with good profit prospects.