Travel sickness was something I never thought would happen to me, despite being a frequent flyer. Yet during a recent business trip to Northeast China, I felt an unsettling discomfort in my stomach. While frantically searching for a pharmacy, I spotted a familiar trumpet-branded medicine box. Surprisingly, Hong Kong’s well-known Taiko Seirogan (with its distinctive trumpet logo) was also popular here.
Before purchasing, I carefully examined the packaging and discovered that the mainland’s ‘Taiko Seirogan’ was distributed by Kingworld Medicines (01110). Further research revealed that many well-known medicines in Hong Kong were actually handled by this company.
Through effective marketing positioning, Kingworld has cultivated several household names, including Nin Jiom Pei Pa Koa, Taiko Seirogan, and Kingworld Imada Red Flower Oil. Additionally, they distribute two prescription medicines: Foci Kingworld An Gong Niu Huang Wan and Fengbao Jianfu Capsules. This diverse product portfolio continues to undergo strategic optimization.
The previously mentioned Taiko Seirogan, with its 123-year history, marks the beginning of Kingworld’s star product development. Since its establishment in 1996, Kingworld Medicines has been the sole mainland distributor for Taiko Seirogan, focusing on brand promotion and sales in China.
Taiko Seirogan has maintained strong sales in Hong Kong and Southeast Asian countries due to its effectiveness and reputation, becoming one of the company’s signature products. Through persistent brand cultivation, this digestive medicine has successfully penetrated countless Chinese households, with market share growing yearly and showing strong resilience recently.
Recently, Taiko Seirogan’s supply has been constrained by manufacturing capacity. 2024 sales remained relatively flat compared to 2023 due to supply chain issues. However, this situation is expected to improve soon, responding to the expanding market for digestive medicines.
Taiko Pharmaceutical, the manufacturer of Taiko Seirogan, recently revealed plans for new product overseas promotion, emphasizing product line enrichment and innovation to meet diverse needs precisely. This suggests that once production constraints are resolved, it could inject new momentum into Kingworld’s revenue.
The success of Taiko Seirogan and Pei Pa Koa demonstrates Kingworld’s eye for stellar products, development capabilities, and replicable sales formula. The next potential star product could be Foci Kingworld An Gong Niu Huang Wan, launched during Kingworld’s 30th anniversary. This medicine for treating critical cerebral stroke symptoms shows stable growth potential and could become a core revenue driver for medium to long-term growth.
Due to its rare bezoar ingredient and legendary efficacy, An Gong Niu Huang Wan is regarded as a ‘miracle medicine’ by consumers. According to CMH data, it topped the TOP 20 traditional Chinese medicine sales in retail pharmacies during the first half of 2024, consistently ranking in the top five from 2019 to 2023, with sales exceeding 2.5 billion yuan in the first half.
Despite recent price increases in raw bezoar materials making An Gong Niu Huang Wan somewhat of a luxury item, demand remains strong. Its proven effectiveness, high market recognition, and limited substitutes maintain robust demand despite upstream price fluctuations. Foci Kingworld’s version uses nationally protected cultivated bezoar, ensuring more stable efficacy.
Recently, Kingworld deepened cooperation with China’s only company achieving mass production of in vivo cultivated bezoar, collaborating on raw materials and promoting cultivated bezoar pieces in secondary and tertiary markets, aiming to increase market penetration rapidly.
Additionally, Kingworld’s joint-venture product “Minshan Xiaoyao Wan” won the ‘Most Popular Pharmacy Brand Award in Hong Kong’ for two consecutive times, further demonstrating the company’s ability to turn products into market favorites.
Last year, Kingworld’s basic earnings per share increased by 12.1%, with a final dividend of HK$3.17 per share, currently yielding 5.37%. This dividend yield ranks favorably among Hong Kong stocks, and with the company’s stable dividend history and active product diversification, its medium to long-term value shouldn’t be overlooked.
Taiko Seirogan to An Gong Niu Huang Wan: Decoding Kingworld Medicines’ Winning Formula”
