Enhua Pharmaceutical (002262): The rapid growth of industrial income is in line with expectations
Event: The company released the semi-annual report for 2019: the first half of 2019 achieved operating income20.
9.7 billion, an annual increase of 12.
41%; net profit attributable to mother is 3.
2.2 billion, an annual increase of 22.
87%; EPS per share is 0.
The first three quarters of 2019 are expected to grow by 15% -35%.
Investment Highlights: Q2 2019 revenue growth11.
53%, continued steady growth momentum.
In Q2 2019, the company achieved revenue of 10.
48ppm, an annual increase of 11.
53%, Q1 growth rate (13.
(31%), a slight decrease, compared with the single quarter growth rate of the past two years basically stable at more than 10%, which can sharpen the company’s continued steady growth momentum.
In view of different industries, the pharmaceutical industry continued to maintain rapid growth in the first half of 2019, achieving revenue13.
5.5 billion, an annual increase of 18.
55%, of which anesthesia products income6.
7.7 billion, an annual increase of 16.
99%; income from spiritual products 5.
08 million yuan, an annual increase of 23.
47%; income from neurological products is 0.
$ 7.5 billion, an increase of 34 per year.
We believe that the continuous and rapid growth of industrial income is mainly related to the steady growth of old products and the rapid growth of second and third products. Among them, midazolam and etomidate increased at about 20%; dexmedetomidine and gabapentin maintained 30%Exceeded; while duloxetine exceeded 50%, aripiprazole doubled.
In addition, the company’s commercial revenue in the first half of 20197.
1.6 billion, an annual increase of 3.
Gross profit margin further increased, and performance growth was in line with expectations.
The consolidated gross profit margin for the first half of 2019 was 59.
12%, an increase of 6 per year.
20 digits, an increase of 1 from the previous quarter.
83 is the best, benefiting from the increase in the proportion of industry, including the improvement in profitability of sub-businesses, of which industrial gross profit margin was 84.
73%, an increase of 3 per year.
12; Pharmaceutical business gross margin is 10.
91%, an increase of 4 per year.
In terms of performance, it increased by 22 in the first half of 2019.
87%, an increase of 23 in the next ten years.
25%, in line with market expectations, mainly benefited from the steady growth of revenue and the continuous improvement of gross profit 淡水桑拿网 margin.However, the expense ratio has increased during the first half of 2019, of which the sales expense ratio and the management expense ratio are 31.
27% and 8.
23%, an increase of 2 a year.
74 specific and 1.
Among them, the sales expenses are mainly the increase in market construction costs and other expenses, which may be related to the company’s larger sales in non-collective mining areas under the background of centralized mining; and the management costs increased by 2389.
880,000 yuan in equity incentive expenses.
In the first half of the year, R & D achievements were abundant and follow-up development was guaranteed.
In the first half of 2019, the company’s R & D investment was zero.
77 trillion, an annual increase of 13.
Among them, 4 projects have been declared for consistency evaluation (clozapine tablets, dexmedetomidine hydrochloride injection, risperidone dispersible tablets, gabapentin capsules), and 3 projects (clonazepam tablets, midazolam)Injection, remifentanil hydrochloride for injection).
In terms of innovative drugs, D20140305-1, pregabalin sustained-release capsules and DP-VPA are in clinical trials, while TRV-130 in the United States has completed phase III clinical trials and declared NDA.
We believe that the successive listing of alternative generic drugs and innovative pharmaceutical products and the consistency evaluation of generic drugs have successfully passed a variety of growth, the company’s competitive strength is getting stronger and stronger, and long-term development needs to be guaranteed.
Maintain the “Recommended” level.
We maintain our previous forecast and expect the EPS for 2019-2021 to be 0.
63 yuan, 0.
77 yuan and 0.
96 yuan, taking into account the company’s growth certainty and the vast space in the central nervous system, maintain the “recommended” level.
Risk warning: Tender price reduction is greater than expected; R & D progress is not up to expectations; Expenses are growing faster than expected;