East China Pharmaceutical (000963) Commentary Report: Beautiful Performance, Strong Endogenous Growth

East China Pharmaceutical (000963) Commentary Report: Beautiful Performance, Strong Endogenous Growth

Event: The company released the first quarter of 2019 report, reporting that the combined company achieved operating income of 97.

5.0 billion, an increase of 23 over the same period last year.

84%; realized operating profit 11.

27 ppm, an increase of 32 over the same period last year.

74%; realized net profit (net profit attributable to owners of the parent company) 9.

07 million yuan, an increase of 37 over the same period last year.

63%.

Corresponds to a relative return of 0.

62 yuan.

  Investment Highlights Q1 has a strong performance, strong endogenous growth reports performance, and the company achieved operating income of 97.

0.5 billion, an increase of 30.

11%, an increase of 23 over the same period last year.

84%, in line with expectations; net profit attributable to mothers9.

07 million yuan, an increase of 108.

03%.

Report budget, selling expenses 18.

590,000 yuan, an increase of 38 in ten years.

82%, mainly due to the expansion of the sales scale and the increase in the scope of consolidation; management expenses.

07 million yuan, an increase of 35 in ten years.

03%, mainly due to the increase in the scope of consolidation during this period;

58 ppm, a 69-year increase.

60%, mainly due to the increase in R & D investment in this period; financial expenses 0.

3.6 billion, an increase of 476 every year.

39%, mainly due to the increase in interest-bearing debt in the current period.

  Acarbose is the first to pass the consistency evaluation and gradually improve the classification 杭州桑拿网 of diabetesIt is expected to achieve rapid volume, which will support the company’s domestic diabetes product line of more than 5 billion US dollars in the future.

At present, there are more than 20 varieties of diabetes drugs under development, which have initially formed the full coverage of the mainstream clinical drugs for diabetes.

The company’s international development has embarked on the journey, and in the future, it will gradually realize the transformation from generic drug companies to comprehensive innovative drug companies.

The company’s product pipeline under development is rich, and the company’s product pipeline under development is rich, of which 1.

There are 4 new drugs in class 1, 17 generic drugs in class 3, and 5 biosimilars. The fields involved include anti-tumor, diabetes, anticoagulant, anti-infection and other categories. The rich R & D pipeline provides the company with a sustainable growth engine.
TTP273 (oral GLP-1 analogue) has been applied for domestic clinical trials. Phase III clinical completion in the United States is gradually progressing to phase III clinical trials. HD118 (DPP-4 inhibitor) is in clinical phase I and liraglutide (GLP-1 analogue).Phase III was initiated, and production was planned to be reported within this year. Detemir had been declared clinical.

  The second-tier new varieties are gradually forming a scale. The export of preparations has been gradually deployed. At present, the company’s Bailing capsules account for 40% at the grassroots level, and acarbose is close to 45%.The year will continue to maintain a growth rate of 10%.

The company’s second largest variety of acarbose has been gradually promoted along with the consistency evaluation. The expansion of the grassroots market with imported substitutes is expected to continue to maintain a 30% growth rate.

Second-line varieties of immunosuppressants currently have better competitive advantages, and will continue to import substitutes in the future. The entire immunosuppressant sector is expected to maintain a growth rate of more than 25%, of which tacrolimus strives to maintain a growth rate of more than 30%.

New second-line products: Pyroglitazone metformin, a second-line diabetic variety, reached 1 in 2018.

500 million US dollars, this year is expected to approach 2.

5-3 million levels.

Pyridinaldehyde bufen’s 2018 list of new base medicines has a strong growth momentum, and it is expected that this year’s revenue will exceed $ 100 million.

The company’s first export preparation, pantoprazole, has received temporary approval from ANDA. Following tacrolimus, daptomycin will gradually enter the application process.The company’s pharmaceutical industry segment is expected to maintain a growth rate of more than 25%.

The company invested in and held the London medical beauty listed company Sinclair Pharmaplc, and actively expanded the company’s medical beauty product echelon to build a stronger medical beauty product business.

  Earnings forecast and forecast The company is expected to achieve operating income of 335 in 2019-2021.

1.5 billion, 366.

930,000 yuan, 403.

34 trillion, with growth rates of 9 respectively.

30%, 9.

48%, 9.

92%.

Net profit attributable to parent company 27.

75 billion, 34.

06 billion, 42.

3 billion yuan, a growth rate of 22.

43%, 22.

72%, 24.

18%.

The company’s EPS is expected to be 1 in 2018-2020.

90, 2.

34, 2.

90 yuan / share.

  Risk Warning 1.

R & D pipeline advances less than expected2.

Pharmaceutical industry product sales promotion is less than expected