In 2010, the company achieved main business income of 289 million yuan, an increase of 15.15% over the same period last year; operating profit of 23.93 million yuan, an increase of 8.27% over the same period last year; net profit belonging to the parent company was 20.3342 million yuan, an increase of 18.23% over the same period last year; and basic earnings per share was 0.17 yuan. The distribution scheme is 0.50 yuan (including tax) in cash dividend for every 10 shares.
Drug sales maintained steady growth. In 2010, the company realized drug sales revenue of 281 million yuan, an increase of 12.30% over the same period last year. Due to the rectification of Mindi's sales channels, the decline in sales of Mindi was curbed. The revenue of anti-allergy drugs was 62.05 million yuan, down 1.57% from the same period last year. Sales of cardiovascular drugs such as Lianhuanerding were stable, with an income of 59.56 million yuan, an increase of 4.79% over the same period last year. Apprite continued to maintain a good growth momentum, and the revenue of urology drugs reached 37.2 million yuan, an increase of 23.22% over the same period last year.
The comprehensive gross profit margin is basically stable. By improving the process of existing products, the production cost of ebastin and terfenadine has been greatly reduced; at the same time, due to strengthening the management of the sales team and product promotion, the net sales of key clinical varieties in Liaoning, Tianjin, Hebei, Jiangsu, Shanxi and Shandong have increased significantly, and the company's drug business gross profit margin has increased slightly by 0.72% compared with the same period last year. The comprehensive gross profit margin remained basically stable, only slightly lower than the same period last year by 0.02 percentage points to 48.68%. At the same time, due to the decline in the rate of sales expenses and management expenses, the expense rate during the company period decreased slightly by 0.80 percentage points, so that the profit growth rate is still faster than the income growth rate.
The echelon of new products is the future growth point of the company. In 2010, the company's compound felodipine sustained-release tablets, clopidogrel hydrosulfate and its tablets have been declared for production; two varieties of eplenone tablets and eplenone capsules have been put into clinical research. Compound epristeride has been developed and will gradually replace the current unilateral epristeride after success. The continuous listing of the echelon of new products in the future will support the sustained growth of the company.
Profit forecast and rating. It is estimated that the company's EPS in 2011 and 2012 will be 0.18 yuan and 0.22 yuan respectively, with the corresponding dynamic price-to-earnings ratio of 105 times and 84 times respectively based on the latest closing price. The valuation is obviously on the high side and the "neutral" investment rating is maintained.
Risk tips: 1) the risk of substantial fluctuations in raw material prices.
2) the risk that the launch of new products is slower than expected and the market development does not meet expectations.
