Jianyou Co. (603707) 2019 Interim Report Comments: Performance Meets Expectations Continues to Promote Overseas Preparation Market Layout
Company dynamics The company released its semi-annual report for 2019.
Matter commentary performance was in line with expectations. The profit growth in the second quarter was relatively rapid. The first quarter improved and improved the company’s operating income in the first half of 2019.
7.7 billion, an annual increase of 38.
44%; net profit attributable to mothers2.
8.9 billion yuan, an annual increase of 27.
34%; net profit after deducting non-attributions2.
80ppm, an increase of 30 per year.
13%, basically in line with expectations.
In terms of quarters, the company achieved operating income of 5 in Q2 2019.
6.7 billion, an annual increase of 36.
78%; net profit attributable to mothers1.
4 billion, an annual increase of 33.
05%, profit growth has improved compared to Q1.
The company’s gross profit margin for the first half of 2019 was 50.
08%, an annual increase of 2.
The 21 concentrations were mainly caused by the price increase of standard heparin raw materials and the high growth rate of low-molecular-weight heparin preparations, which led to product structure adjustments and other factors.
Company expenses during the first half of 201922.
22%, an annual increase of 3.
There are 29 totals, of which 14 are sales expenses.
31%, an increase of 4 per year.
52 samples, mainly due to the company’s continuous promotion of third-party clinical representation and other factors.
The company’s net operating cash flow in the first half of 2019 was -3.
4.5 billion US dollars, mainly due to the company’s increased inventory purchase; 19H1 inventory was 24.
400,000 yuan, an annual increase of 25.
05%, mainly due to rising raw material prices, increased purchases and other factors.
Heparin APIs maintained a high level of prosperity. The low-molecular-weight heparin preparation business continued to grow at high speed and split production. The standard heparin API business increased revenue in the first half of 2019 by 31.
According to data from the General Administration of Customs, the average export price of upstream heparin in June 2019 was US $ 6,156 per ton, an increase of more than 20%.
34%, 19H1 gradually export value reached 617.
38 million US dollars, an annual increase of 8%, heparin API continued to show a good trend of rising volume and price.
According to the National Bureau of Statistics, Croatia’s 19H1 pigs were slaughtered3.
1.3 billion heads, down 6 every year.
2%; live pig inventory at the end of June 3.
4.8 billion heads, a decline of 15 a year.
At 0%, the number of pigs slaughtered and the number of slaughter stocks will continue to decline, and the supply of heparin APIs is expected to maintain a high level of prosperity.
In the first half of 2019, the company’s low-molecular-weight heparin preparation business grew revenue by 59%.
17%, with sales of more than 8 million. Through the company’s internal sales market, the company continues to expand its promotion efforts and gradually improve its sales network layout. The low-molecular-weight heparin preparation business is committed to maintaining rapid growth and contributing to the company’s performance growth.
Continue to expand R & D investment and further advance the international high-end preparation market layout. The company’s R & D investment in the first half of 2019 reached 8,252.910,000 yuan, an annual increase of 39.
The company Enoxaparin Sodium Injection has been approved for marketing in the United Kingdom in March 2019. The bensulfatracurium ammonia injection USP was approved by the US FDA in April 2019. The heparin sodium injection USP has 8 specifications in 2019.It was approved by the US FDA in May of this 南宁桑拿 year to further develop the company’s layout of the international high-end preparation market. It is expected to gradually begin to supply in the European and American markets in the second half of the year. It is expected that the overseas preparation business will achieve heavy growth in 2020.
The company announced on August 1 that its wholly-owned subsidiary Hong Kong Jianyou intends to acquire Meitheal83.
With 33% equity and interest, Meitheal has a rich and comprehensive product portfolio, including 9 products such as carboplatin, oxaliplatin, and atracurium, which are listed on the market, and its mature US pharmaceutical market operation capabilities and quality customer resourcesConducive to speeding up the implementation of the company’s internationalization strategy and improving the market layout; expansion, 南宁桑拿 Meitheal has a professional and experienced sales team to effectively penetrate the market of existing products and newly developed products, helping the company to develop products in advance for market promotion and order acquisition.
In the future, the products under application and research are gradually listed in the United States, the European Union and other overseas markets. The overseas preparation business is expected to become a new growth point for the company’s performance.
Risk reminders: exchange rate fluctuations, intensified market competition, lower-than-expected orders for APIs, slow progress in overseas market sales, new product approval progress is less than expected, financial investors’ risk reduction, and changes in the international trading environment.
Investment recommendation In the next six months, maintain the “cautious increase” rating and expect the company’s EPS to 0 in 19 and 20 years.
08 yuan, with a closing price of 28 on July 31.
22 yuan calculation, the dynamic PE is 34.
4 times and 26.
We believe that the company is one of the few domestic manufacturers of heparin raw materials that have passed the FDA and EU EDQM certification at the same time. In the domestic market, it also has three low-molecular-weight heparin preparations of enoxaparin sodium, dalteparin sodium, and nadroparin calcium.On the basis of maintaining the standard heparin API business and the rapid growth of the low-molecular-weight heparin preparation business, the declared products have continued to obtain market approval for overseas markets, accelerating the implementation of the company’s internationalization strategy, and the overseas preparation business will contribute new companies in the next 2-3 years.Profit increase.
In the next six months, we will maintain a “cautious increase” rating.