1. Company performance:
The company recorded a turnover of about 418 million yuan, down 14.38% from the same period last year. The profit attributable to the owners of the parent company is about 131 million yuan, down 14.77 per cent from the same period last year. EPS is 0.16 yuan, the decline in income and profit is due to the recovery of Lei Yi's total distribution rights and inventory recovery, the actual business growth is relatively rapid, deducting the influence of Lei Yi, an increase of 21%.
2. Lei Yi de:
According to the original contract, it will grow, complete 170 million in the first half of the year, terminate the contract, the actual sales will be 18 million, a difference of 150 million, and a profit difference of 55 million. Affected the performance. The company has always wanted to recover the general agency, the strength of the distributor is limited, and the agency enterprise has changed. Acquired by China Pharmaceutical, internal investment is reduced. I didn't pay attention to it for half a year.
Lei easy handover, smooth handover, inventory recovery, valid for 36 months, with a validity period of two and a half years. There are 70 agents, of which more than 10 are hoarding channels. For the agent team, do well, take reservations, do not do well, by the company's team to do.
Only a few provinces failed to apply for Lei's easy tender. Keep 15 provinces winning the bid. The price is maintained in good condition. The company did not participate in the price war. The company has a long-term goal to take the international route. The international market is being done in Vietnam, Africa and other countries; the certification of the FDA of the United States and the European Union is also being done.
3. Lei Yi de's outlook for the second half of the year:
Actual sales were 18 million in the first half and 80 million in the second half of the year. All the inventory has been disposed of.
4. Lei Yi de's sales in the country:
Some provinces of Guangdong and Jiangsu are completing their own teams in sales, while other provinces are mixed. It depends on the situation. Guangdong will invite tenders in December with a capacity of 6 million boxes, one for seven companies. We sell 300000 boxes outside the company. Through the company's efforts, in the case of not winning the bid, to achieve a market of 900000 boxes. Hebei is the largest market, there is no shortage of goods, normal sales are being carried out. Reid's sales in Hong Kong are basically flat, with a 20% growth in the second half of the year.
5. performance outlook for the whole year:
Full-year profit growth of 5-10%.
6. Research and development:
The company attaches great importance to research and development, currently rich in cash, mainly used for research and development and mergers and acquisitions of good varieties. Consistency evaluation will continue to be done, for each variety. After the proton pump inhibitor esomeprazole is put on the market, the sales prospect will be very broad, surpassing entecavir, AstraZeneca PLC's original research drug is sold on a scale of billions in China.
7. The net interest rate is basically the same:
In the case of Lei Yi de's short-term substantial adjustment, thanks to the stability of product prices and the control of expenses and costs, the net interest rate was 31.4%, compared with 31.6% in mid-2015. Administrative cost control, management results.
Each department to analyze, workshop personnel optimization, sales to reduce unnecessary expenditure, research and development has been on the rise. Investment in new varieties is also increasing.
8. Two-vote system:
The two-vote system will have an impact on the company, but it is not big on the whole. The company wins by quality, has been standardizing its operation, and will comply with the regulations. I believe it will be handled very well.
9. Mergers and acquisitions:
The company's current variety is not dominant, the company is strong marketing ability, is the excellent quality of products. To return to the top 100 pharmaceuticals. Relying on internal endogenous growth, we also have to rely on mergers and acquisitions. At present, we are also paying attention to a number of targets, among which there are more than 1 billion of expired patent drugs acting as agents of multinational corporations.
10. API:
The loss of APIs in the first half of this year has improved compared with the same period last year, reducing the loss by more than 80 million, and striving for a break-even in the second half of this year.
11. Summary and recommendations:
The company has better cost control and payback, outstanding product quality and brand, proper bidding strategy, and certain advantages. The actual business growth in the medium term is 21%, and Lei's influence is temporary. In the long run, the company will take back the distribution right. With the company's sales ability, it is conducive to the sales of Lei Yi products in the long run, and it can also improve profit margins. The company also has great confidence in buying new varieties. I believe that the purchased varieties will also have a larger market space, the company is expected to maintain faster growth than the industry in the future, the current valuation is very low, it is recommended to actively configure.