The curative effect of ricardine is definite, and the biological business is on a long voyage. The development of monoclonal antibody product ricardine is the focus of the market. We analyzed previously that the key to the lack of dose of three-year-old nicotine on the market is that its actual efficacy has not been finally confirmed, and the fourth phase clinical report gives us an affirmative answer. We believe that ricardine is a milestone in the treatment of liver cancer and will be adopted as the first choice by more and more doctors and patients. The most fundamental obstacle to its dose no longer exists. We maintain our sales estimates of about 1000-1200 in 2010 and around 2400 in 2011.
Sanqi Tongshu high growth, traditional Chinese medicine business sparkling. From January to June 2010, pharmaceutical companies and group pharmaceutical factories totaled 88.9356 million yuan in tax sales, an increase of 62.79 percent over the same period last year, and total profits totaled 10.3968 million yuan, up 87.52 percent over the same period last year. The operating income of Sanqi Tongshu capsule in the first half of the year was more than 4200 yuan, an increase of 78% over the same period last year, exceeding our expectation of 60% growth. The annual income of this year is likely to exceed 100 million yuan. Biyuanshu Oral liquid also achieved a higher-than-expected growth of 22%. We have raised our profit forecast for the proprietary Chinese medicine business for the whole year, and believe that the company's proprietary Chinese medicine business revenue will achieve a high growth rate of more than 40% a year from 2010 to 2012.
The super contract exceeded expectations, when will the steel structure business be spun off? Huashen Group's four main businesses, Huashen Steel structure, because the gross profit margin is far lower than the other three businesses, is the least efficient use of funds. The steel structure company's big contract of 162 million at the end of July greatly raised the steel structure company's profit forecast, and also greatly affected the company's overall EPS level this year (we adjusted the EPS from 0.11 yuan to 0.04 yuan this year), but because we adopted sub-business valuation, the incident actually had little impact on the overall valuation of the company. We believe that with the gradual development of biopharmaceutical and proprietary Chinese medicine, the divestiture of steel structure business from listed companies should be a high probability event.
"compulsory immunization" is difficult to predict, and the veterinary business continues to accumulate strength. If the pig pseudo-rabies vaccine can be included in the compulsory immunization list of the Ministry of Agriculture, the "anti-pseudo-excellent" products of veterinary companies are likely to benefit, but at present it is not difficult to be self-sufficient and it is difficult to make a substantial profit.
Profit forecast: according to the actual development of the company, we reduced the company's EPS to 0.04 yuan in 2011, and raised the company's profit level in 2010 and 2012 to 0.24 yuan and 0.46 yuan. The biggest doubt about the development of the company has gradually dissipated, and we are optimistic about the application prospect of ricardine in the field of liver cancer treatment, and maintain the "buy" rating of the company.
Risk tips: the promotion of ricardine is slower than expected; the development speed of proprietary Chinese medicine business is lower than expected.