Successful transformation of excellent specialist pharmaceutical enterprises: from 2011 to the present, the company's specialist pharmaceutical business is progressing smoothly and has good profitability. Antibiotic policy has little impact on the company, the company's cardio-cerebrovascular, hepatitis B products drug competitive advantage is obvious, the company has successfully completed the strategic transformation.
When the performance exceeded expectations, the net profit increased by 47.3% compared with the same period last year: the company's turnover in 2015 was 985 million yuan, an increase of 25.7% over the same period last year. The net profit belonging to the parent company was 302 million yuan, a substantial increase of 47.3% over the same period last year, mainly due to the smooth promotion of specialist drug "an" series, Lei Yi de and other products.
Specialist drugs provide a source of profit, and the raw material business has a slight loss: the company currently accounts for more than 75% of proprietary drugs, "an" series products account for 45.7% of the proprietary medicine business, and Lei Yi accounts for 35%, which is the core growth variety of the company. this part of the business has a high gross profit margin and provides a stable source of profit for the company. Intermediates and raw materials continue to lose more than 37 million, mainly due to the domestic antibiotic market is still shrinking, price pressure is still there, at the same time, the transformation of the production process workshop has brought about an increase in costs.
The space of cardio-cerebrovascular drugs is broad, and the growth of "an" series is steady: the marketing network of "an" series dominated by "an Neizhen" (amlodipine methanesulfonate) continues to improve, maintaining double-digit growth throughout the year, and the growth rate slowed to a low level in the second half of 2015, mainly due to the company's sales strategy adjustment and inventory removal strategy. at present, from the situation in the first quarter, "an" series resumes rapid growth. The average daily drug cost of the product is about 1 yuan, and the price pressure is not great. With the company's in-depth promotion in the grass-roots market, "an" series is expected to maintain double-digit steady growth.
Hepatitis B product "Lei Yi de" still maintains rapid growth: Lei Yi de (Entecavir dispersible tablets) is effective in the treatment of hepatitis B and is the main growth force of the company in recent years. Income growth slowed to 35% in the second half of 2015 from 69% in the first half, mainly due to price pressures and changes in marketing strategies. Because the company's products are sold in Hong Kong, it still has an advantage in domestic bidding. At the same time, the company's sales in Hong Kong was renewed at the end of the 15th, and overseas sales in other regions are also being actively promoted. The price pressure of bidding in some provinces is expected to be offset by the growth of sales, and the product is still an important growth point for the company in the next two or three years.
Steady growth, low valuation, high dividend ratio, "overweight" rating for the first time: several specialty drugs of the company will continue to be an important driving force for growth in the next two to three years, and new products of the digestive tract system are expected to be launched in 16 years. At the same time, the company is rich in cash on hand, there are certain product mergers and acquisitions expectations. We estimate that the EPS of the company in 2016-2018 is 0.45 soybean 0.54 yuan, 0.64 yuan, respectively, and the corresponding price-to-earnings ratio for 16-18 years is 10.5, 8.7, 7.3 times, respectively, which is lower than the industry level. The overweight rating is given for the first time, with a target price of HK $6.50, corresponding to 12 times PE in 2016.
Risk hint: bidding brings price pressure, and competition in raw material business intensifies.