The company's performance grew rapidly in the first half of the year: the company's revenue in the first half of the year was 488 million yuan, an increase of 19.2% over the same period last year. Net profit surged 51.6 per cent year-on-year to 154.3 million yuan. In terms of products, the revenue of antihypertensive drugs increased by 23.3% compared with the same period last year, while the anti-hepatitis B variety Lei Yi de increased significantly by 69.8%. The company's gross profit margin rose to 62.3% in the first half of 2015, mainly due to the continuous improvement of high-margin varieties. There are still losses in the part of APIs, and it is expected to reverse the losses in the second half of the year.
Superior specialist drugs are an important driving force for performance growth: in the first half of 2015, the company's system specialist drugs maintained rapid growth compared with the same period last year, its central cerebrovascular safety series sales increased by 23.3% year-on-year, and anti-hepatitis B product Lei Yi de sales increased by about 70% compared with the same period last year. Although the Ann series products for the treatment of hypertension are faced with the challenges of different brands, the company's marketing team concentrates resources and adjusts relevant measures and work in response to changes in the market situation, so that the sales of this series of products remain stable. The company's anti-hepatitis B drug Lei Yi de, sales in mainland China according to the plan, and made good progress. The overseas market is progressing smoothly and is expected to achieve 50 million of sales in Hong Kong in 2015. at the same time, sales in overseas markets give the product a certain advantage in bidding in various provinces in China and have a positive impact. For example, the company Lei Yi de in Zhejiang Province to enter the high-quality level, the winning price of 136 yuan, the price is much higher than domestic competitors.
The API business resumes production and is expected to reverse losses in the second half of the year: in the raw material business, after the completion and certification of the major projects of the adaptive transformation of the new version of GMP, the production of various intermediates, APIs and powder injections gradually resumed, resulting in a relatively high unit cost of production. Due to the overcapacity of cephalosporins antibiotics throughout the country, the market price has been maintained at a low level, the company's production and sales performance from cephalosporins API and powder injection in the first half of the year did not reach the original target, and the production capacity recovered in the second half of the year. The intermediate price is expected to be maintained at a reasonable level and other factors, the company's raw material business is expected to achieve a turnaround.
The company's growth is robust and its valuation is relatively undervalued: the current share price corresponds to 8.33 times PE for the year 13.68 Maxima in 2015-16-17. The company maintains a dividend rate of about 40% a year.