Financialanalysis

courseworkTeam

membersAnalysis

Outline1.

Introduction2.Common

ratio

analysis3.

Related

Ratio

Analysis4.

Comparative

Analysis

of

competitors5.

Conclusions1.

IntroductionBasic

information

of

companyChinese

Company

Name:

Guangzhou

Baiyunshan

Pharmaceutical

Co.,

Ltd.Name

in

English:

Guangzhou

Baiyunshan

Pharmaceutical

Co.,

Ltd.Chinese

abbreviation

of

the

company:

Baiyunshan

PharmaceuticalCompany

abbreviation:

BYSLegal

representative:

Mr.

Xie

BinBoard

Secretary:

Mr.

Qiao

YongAddress:

Baiyun

District,

Guangzhou

City,

Guangdong

Province,

and

the

streetwith

88

Yunxiang

RoadPhone

:020

-87062599

Fax

:020

-87,063,699E-mail:

qiaoyong@Securities

Affairs

Representative:

Miss

Gao

YanzhuAddress:

Baiyun

District,

Guangzhou

City,

Guangdong

Province,

and

the

streetwith

88

Yunxiang

RoadPhone

:020

-87062599

Fax

:020

-87,063,699E-mail:

gyzh2611@126.com1.

Introduction(2)

Company

Business

DescriptionGuangzhou

Baiyunshan

Pharmaceutical

Co.,

Ltd.

Established

in

1973,

1992,

GuangzhouMunicipal

People"s

Government

of

11

menstrual

approved

by

the

General

PharmaceuticalFactory,

Guangzhou

Baiyun

Mountain,

such

as

the

establishment

of

five

joint-stockcompanies

through

the

restructuring

of

enterprises,

in

November

1993

as

the

first

batch

ofGuangzhou

City

Listed

companies

listed

on

the

Shenzhen

Stock

Exchange,

now

has

totalshare

capital

of

469

million.

Sales

volume

in

2007

reached

3.61

billion

yuan

in

2008

salesvolume

of

over

4

billion

yuan.

?

company

focused

on

the

pharmaceutical

industry,

thebusiness

includes

the

production

and

management

of

a

variety

of

dosage

forms

of

Chineseand

Western

medicine,

chemical

raw

materials,

external

use,

children"s

medicine,

healthmedicine

and

other

drugs.

After

years

of

development,

under

the

White

Cloud

Mountain

atotal

of

12

member

companies,

have

all

passed

the

national

GMP,

GSP

certification,Guangzhou

Baiyun

Mountain

Innovation

Centre

Chemical

Pharmaceutical

EngineeringTechnology

Center

in

Guangdong

Province.

?

the

company

over

the

years

to

brand

building,establishing

the

first

pharmaceutical

preparations

in

the

country

one

of

the

brand,

its

brandawareness

and

reputation

among

consumers

in

the

country

has

a

strong

influence.

2006"White

Cloud

Mountain

"

trademark

was

identified

as

well-known

trademarks

in

China

in2007,

was

identified

as

"focus

on

training

and

development

of

exports

of

GuangdongProvince

Famous

Brand

"

title

brand

value

in

2008

was

assessed

to

be

10.52

billion

yuan.Business:

development,

production,

sales

of

Chinese

and

Western

medicine,

chemicalraw

materials,

external

use,

children"s

medicine,

health

medicine.

Operation

of

commercialand

material

supply

and

marketing.

Operating

various

types

of

goods

and

technology

importand

export

business

(except

for

national

limit

and

prohibition).

Management

and

feedprocessing

and

the

"three

to

fill

a

"

business.

Production

of

two

types

of

clinical

testing

of

theinstruments

and

diagnostic

reagents.1.

Introduction(3)

2010

annual

operating

resultsUnit:

million一、公司介紹(3)

annual

operating

results

in

2010Unit:

million(3)

2010

annual

main

business

regionsUnit:

million二、共同比分析Comparison

of

accountingdata

calendarUnit:

Yuan2.Common

ratio

analysisLongitudinal

analysis

of

the

common

ratio

Balance

Sheet2.Common

ratio

analysisLongitudinal

analysis

of

the

common

ratio

Income

Statement2.Common

ratio

analysisSummary

of

longitudinal

analysis

of

the

common

ratioCompany

for

more

rational

use

of

funds

in

the

futuredevelopment

of

the

debt

the

company

is

facing

down,the

company

increased

mobility,

improved

ability

torepay

the

debt,

the

enterprise"s

reputation

is

moresecure.Company

attaches

importance

to

the

use

of

newtechnologies,

improve

the

internal

management

morestreamlined,

better

customer

service.Net

income

increased

to

increase

theeffectiveness

of

the

company,

the

investors

havemore

confidence

in

the

stability.2.Common

ratio

analysisCommon

ratioof

horizontal

Balance

Sheets2.Commonratio

analysiCommonratio

ofhorizontalIncome

Statement2.Common

ratio

analysisSummary

of

the

common

ratio

of

horizontalCompany

for

more

robust

use

of

funds

andreasonable,

the

company"s

operations

more

smoothly,liquidity,

solvency,

corporate

reputation,

and

otherareas

have

been

protected.

Decline

in

the

company"sdebt,

the

company

for

reducing

the

burden

of

debt,more

money

into

the

business

sales,

the

companyearnings

could

increase

further.

Company

revenuehas

increased

each

year,

significantly

improved

theeffectiveness

of

the

company,

net

income

doubled

up,so

that

investors

have

more

confidence

ininvestment.

In

management,

the

company

tends

toimprove

the

management

and

the

company"sstrength

year

after

year

strong,

with

investors

forgreater

stability.3.

Related

Ratio

Analysis3.

Related

Ratio

AnalysisFlow

Analysis

SummarySignificant

improvement

in

liquidity,

and

asliding

scale

year

after

year,

very

good

abilityto

more

stable

capital

flows.

Timely

recoveryof

accounts

receivable,

inventory

flowcapacity

increased

significantly

in

terms

ofaccounts

receivable

and

inventory

is

to

obtainbetter

returns.Sales

did

not

keep

up

with

the

pace

ofworking

capital,

which

is

a

bad

trend.3.

Related

Ratio

Analysis3.

Related

Ratio

AnalysisSummary

of

long-term

solvency

of The

solvency

of

the

company

verywell,

the

creditor"s

interest

is

wellmaintained.

The

company

has

a

goodreputation

that

in

the

banks

to

get

fundsto

help

better.

In

the

interests

ofcreditors

bankruptcy

can

be

wellmaintained.3.

Related

Ratio

Analysis3.

Related

Ratio

AnalysisProfitability

Analysis

Summary From

2008

to

2010,

the

company"sprofitability

continues

to

improve,

net

interestmargin

and

operating

margin

increasedsignificantly,

the

situation

is

quite

good.

Thehigher

the

profitability

that

investors

haveconfidence

in

the

future

the

company

iswilling

to

pay

the

purchase

price

for

eachdollar

surplus,

the

company

can

get

morerevenue.3.

Related

RatioAnalysis3.

Related

Ratio

AnalysisInvestor

Analysis

SummaryShareholders

has

increased,

the

stock

price

roseyear

by

year.

Volatile

earnings,

a

greater

impact

forthe

company.

Declining

dividend

payment

will

resultin

some

shareholders

sell

their

shares.

Between

theprice-earnings

ratio

is

normal

in

5-20.

When

the

stockmarket

are

factors

that

do

not

interfere

with

thenormal,

some

of

the

stock

market

should

not

havebeen

bid

up

to

the

height

of

price-earnings

ratio

willbe

too

high.

More

than

20

price-earnings

ratio

is

notconsidered

normal.

The

stock

price

decline

is

likely

aprecursor

to

higher

risk.As

the

company"s

largest

shareholder,

theproceeds

will

be

good;

and

as

ordinary

shareholders,although

the

interest

is

not

compromised,

butcompared

with

the

previous

income,

will

decline.4.

Comparative

Analysis

of

competitors4.

Comparative

Analysis

of

competitorsSummary

of

Comparative

Analysis

of

LiquidityIn

accounts

receivable,

the

Baiyun

Mountain

is

betterthan

the

company

Yunnanbaiyao

company.

In

theinventory,

the

company

is

better

than

the

BaiyunMountain

Yunnanbaiyao

company.

In

working

capital,current

ratio,

quick

ratio,

cash

ratio,

etc.,Yunnanbaiyao

companies

are

better

than

the

WhiteCloud

Mountain

Company.Yunnanbaiyao

company"s

liquidity

is

better

in

theBaiyun

Mountain,

the

company"s

liquidity.Yunnanbaiyao

companies

better

access

to

funds

offunds

can

take

advantage

of

faster

production

andlower

earnings.4.

Comparative

Analysis

of

competitorsComparative

Analysis

of

competitorsSummary

Comparison

of

long-term

solvencyIn

debt,

Yunnanbaiyao

company

data

arebetter

than

each

of

the

White

Cloud

MountainCompany,

the

company"s

solvency

ratioYunnanbaiyao

Baiyun

Mountain,

thecompany"s

ability

to

better

the

lot.Yunnanbaiyao

better

the

credibility

of

thecompany

that

in

banking,

financial

assistancecan

be

better,

and

in

the

interests

of

creditorsbankruptcy

can

be

well

maintained.4.

Comparative

Analysis

of

competitors4.

Comparative

Analysis

of

competitors

Summary

of

Comparative

Analysis

ofprofitabilityIn

terms

of

profitability,

Yunnanbaiyaocompanies

are

better

than

most

of

thedata

the

company

Baiyun

Mountain,only

sales

and

gross

margin

ratio

offixed

assets

is

lower

than

BaiyunMountain

Company.4.

Comparative

Analysis

of

competitors4.

Comparative

Analysis

of

competitorsSummary

Comparison

of

investorsWhite

Cloud

Mountain

Inc.

and

Yunnanbaiyaocompanies

regard

the

two

companies

relative

to

theirown

comparative

advantages

of

investors.

At

the

endof

the

market

price

was

higher

than

the

market

priceof

the

company

Yunnanbaiyao

Baiyun

MountainCompany.

As

a

major

shareholder

in

the

investment,the

Yunnanbaiyao

to

gain

a

better

income,

andinvestment

in

the

stock

as

ordinary

shareholders,

theBaiyun

Mountain

Company

is

the

better

choice.Price-earnings

ratio

of

the

two

companies

havemore

than

20%,

there

is

a

drastic

drop

in

risk.5.

ConclusionsIn

common

than

by

line

analysis,

correlation

ratioanalysis

and

comparative

analysis

of

competitors,

thecompany

obtained

the

mobility

of

Baiyun

Mountain,

the

long-term

solvency,

profitability,

lower

than

theYunnanbaiyao

company.

Yunnanbaiyao

company

willbe

investing

a

little

bit

better

returns.

Comparison

ofinvestors

after

making

further

draw

in

investment

as

amajor

shareholder,

the

investment

company

will

bebetter

Yunnanbaiyao

income;

ordinary

shareholdersby

the

line

as

the

investment,

the

investment

BaiyunMountain

to

gain

better

returns

.5.

ConclusionsOverall,