Event description:
The company announced last night that Jinsha Pharmaceutical, a wholly owned subsidiary of the company, recently submitted to the company's board of directors a report on the clinical supplement phase of Ⅱ phase of the new drug Sanglin capsule (traditional Chinese medicine) for the treatment of Ⅱ diabetes. The results showed that Morin capsule could significantly reduce blood glucose, glycosylated hemoglobin and increase the level of insulin. It had no abnormal effect on ECG, blood, urine, liver and kidney function, and had no obvious side effects. And its curative effect on diabetes is obviously better than that of traditional Chinese patent medicine, which is comparable to the first-line use of chemical drugs.
Comments:
Morin capsule is about to enter the Ⅲ phase clinical research, which is expected to become a new profit growth point of the company in the future. The company is mainly engaged in proprietary Chinese medicine, mainly in the fields of throat, cold, gastrointestinal and tonifying drugs. Morin capsule is a national five kinds of new traditional Chinese medicine developed by Jinsha Pharmaceutical Co., Ltd. since 2000, and it is also the only five kinds of new traditional Chinese medicine in Hunan Province, mainly for the treatment of Ⅱ diabetes. Compared with chemical drugs, it has no toxic side effects and similar efficacy. Compared with compound preparations of traditional Chinese medicine, the material basis of effective hypoglycemic parts is clear, the action mechanism is clear, and it has the advantages of both chemical drugs and traditional Chinese medicine products. It accords with the overall strategy and planning for the development of component traditional Chinese medicine in China. At present, the company's Morin capsule has entered the clinical supplement stage of Ⅱ phase, and the follow-up phase will carry out Ⅲ clinical research and apply for drug production approval. This means that in the future, the company will own innovative traditional Chinese medicine for the treatment of diabetes, enrich the company's product structure, improve the core competitiveness and independent innovation ability of the company's products, and form a new profit growth point.
Huaqing Garden Plum Tree Base won the forest license, which provides a guarantee for the company's right-handed borneol business. Huaqingyuan is engaged in the cultivation, planting and extraction of natural right-handed borneol (natural borneol), which is 45% owned by the company. D-borneol is the main raw material of more than 60 kinds of traditional Chinese medicine, such as compound Danshen dropping pills, Suxiaojiuxin pills, Shexiang Baoxin pills, Shuangliao Houfeng Powder and so on. At present, the supply of natural right-handed borneol in the market is less, and the market gap is large. And the price of natural D-borneol is expensive, and the price of high-purity medicinal natural D-borneol can reach 10000 yuan / kg. This time, there are 823.5 mu of land issued with forest certificates, with a useful life of 29 years. The issuance of forest warrants means that the management and ownership of Huaqingyuan base will be protected by law in the next 29 years, which provides a guarantee for the long-term development of the company's right-handed borneol business. Profit forecast and rating. We expect the company's earnings per share from 2014 to 2016 to be 0.28,0.36,0.54 yuan respectively. Based on yesterday's closing price, the corresponding dynamic price-to-earnings ratio is 42 times, 33 times and 22 times respectively. We are optimistic about the growth brought by the merger and acquisition of Sands Pharmaceutical and dextral borneol business, and upgrade the company's rating to "overweight".
Risk hint. 1), the clinical effect of the new product is not up to expectations; 2), plum tree planting and natural borneol extraction, sales are not up to expectations; 3), product sales are not up to expectations.