(Yicai Global) May 8 -- Shares of Pientzehuang Pharmaceutical jumped by the daily trading limit after the maker of traditional Chinese medicines said it will increase the price of its multifunctional TCM by 29 percent for the first time in three years to improve performance and enhance competitiveness.

Pientzehuang [SHA: 600436] soared 10 percent to CNY301.19 (USD43.56) a share as of lunch break today.

With the rise in costs of raw materials and labor, the retail price of Pientzehuang’s leading drug Lozenge will rise to CNY760 (USD110) per capsule from CNY590 in the Chinese market, the Zhangzhou-based company said on May 4. Supply costs will also jump about CNY170 per capsule domestically and USD35 globally, it noted.

Because of the complexity of market factors, it cannot be ruled out that there will be a decline in sales, but the firm will improve its overall performance through brand promotion, marketing, higher research and development investment, and channel construction, it said.

Pientzehuang's operating income rose 8.4 percent to CNY8.7 billion (USD1.3 billion) in the 12 months ended Dec. 31 from the year before, while net profit climbed 1.7 percent to CNY2.5 billion, according to its latest earnings report. The figures fell below a long-term double-digit growth and were at their lowest since 2015.

According to past performance and stock price changes, Pientzehuang generally has a steady growth in operation after adjusting prices.

The prices of core products of many listed Chinese pharmaceutical firms have also increased to various degrees in recent years, with the range and interval of Pientzehuang's products being at a medium level.

Tongrentang raised the cost of its core products at the end of 2021 and again at the beginning of last year, with many up over 10 percent and some by as much as 65 percent.

Jianmin Pharmaceutical Group's Longmu Zhuanggu, a pharmaceutical powder, 30-bag pack doubled in cost and that of the 60-bag one jumped by about 50 percent at the end of 2020. Taiji Group increased the terminal prices of some products by two to three times in the same period.

Other TCM manufacturers, including Yunnan Baiyao Group, Mayinglong Pharmaceutical Group, and Jiuzhitang, have also raised the prices of their products.

Editor: Martin Kadiev