Although mainline stocks such as aerospace and military stocks and environmental protection stocks have been repeatedly active recently, they have become the focus of hot money and hot money. However, the holographic financial game model of Bailin shows that there are still some funds in the patient and low-stakes industries with increasingly optimistic prospects, such as Ruipu Bio, Dahuanong, Tiankang Bio, etc. in veterinary drug stocks.

At present, the industrial concentration of the domestic veterinary drug industry is relatively low, and it is still in the stage of warlord melee. Statistics show that there are nearly 2,000 veterinary drug manufacturers across the country. According to the industry's annual sales of about 40 billion yuan, the average annual sales of a single company is only about 20 million yuan. Therefore, the market share of the top ten veterinary drug companies is only about 15%. In the veterinary drug market of developed countries such as the United States and Europe, the market share of the top ten in the industry is more than 70%.

Due to the lack of sufficient capital investment, a large number of small and medium-sized veterinary drug companies in China are lagging behind in technology, and illegal production and sales are common, resulting in an endless stream of incidents of excessive antibiotic residues in livestock. With the high attention of relevant government departments, the investigation and punishment of illegal enterprises is spreading from Shandong to Henan and other large breeding provinces, and the state's efforts to clean up and rectify the veterinary drug market continue to increase, which will lead to a large number of illegal production and lack of core competitiveness. Small and medium-sized enterprises The accelerated withdrawal of veterinary drug companies from the market provides an opportunity for the integration of the veterinary drug industry.

Under the adjustment of market demand and the guidance and supervision of national policies, the backward production capacity of the veterinary drug industry will gradually be eliminated, the industry integration will be accelerated, and leading enterprises will maintain the industry leadership in new products, new technologies and new processes through continuous R&D investment With the continuous improvement of market share, it will form more and more obvious scale effect, have greater market integration ability and pricing power, and industry profits will gradually concentrate on dominant leading enterprises.

Leading enterprises in the veterinary drug industry will enjoy the feast of high growth in the industry. On the one hand, with the improvement of industrial concentration, the operating environment of the veterinary drug market will be purified, and the profitability of leading enterprises will be greatly improved. On the other hand, the trend of large-scale breeding is becoming more and more obvious, providing opportunities for listed companies in related fields to develop. The rapid growth of the number of large-scale breeding listed companies such as Minhe Shares and Young Eagle Agriculture and Animal Husbandry is the best example, thereby driving the rapid growth of the veterinary drug market.

According to the statistics of the Association of Veterinary Drugs, the total revenue of my country's veterinary drug industry was 19.4 billion yuan in 2007, and reached 31.4 billion yuan in 2010, with a compound annual growth rate of 18% in the past four years. With the improvement of residents' living standards and the increase in immunization coverage brought about by large-scale farming, it is estimated that the domestic veterinary drug market will reach more than 70 billion yuan in 2015. If a leading company can account for 10% of the market share, it can reap 7 billion yuan in sales revenue. However, as one of the leading companies in the veterinary drug industry, the sales revenue of Ringpu Bio in 2011 was only 600 million yuan, which is far from the expected revenue of 7 billion yuan, and there is huge room for development.

In operation, it is recommended that investors actively track leading companies in the veterinary drug industry, such as Dahuanong, Ruipu Bio, and China Animal Husbandry, which are all worthy of active tracking. In particular, Ripple Bio has strong competitive advantages in terms of technical reserves and is expected to become a rapidly growing leading stock in the domestic veterinary drug industry. In addition, individual stocks such as Shenghua Baike and Jinyu Group are also worthy of close attention.