The company is a private enterprise committed to drug research and development, production, marketing and technical services. We estimate that the company's revenue growth rate from 17 to 19 is expected to reach 9%, 10% and 11%. The net profit from 17 to 19 is 66 million yuan, 72 million yuan and 79 million yuan, respectively, and the corresponding EPS is 0.41, 0.45, 0.49 yuan, respectively.
Nervous system, cardio-cerebrovascular and digestive systematized drugs are of high quality. The company is a private enterprise specializing in drug R & D, production, marketing and technical services, with GSP (Cylon Pharmaceutical) and GMP (Yueyang Cylon) certification qualifications. At present, the products are mainly concentrated in nervous system, cardio-cerebrovascular system and digestive system and other fields.
At present, the company has a number of important varieties of production documents, market share are in the forefront of the country. Up to now, the company has obtained a number of production approvals, among which the core product monosialic acid tetrahexose ganglioside sodium (GM1) API purity and yield have reached the domestic advanced level. According to Guangzhou punctuation statistics, the preparation product "Saijiekang", which cooperates with Southwest Pharmaceutical Co., Ltd., has been increasing in the past three years and ranked second in China in 2016. "Yi Zhen Kang", a brain protein hydrolysate for injection produced in cooperation with Shanxi Pude, ranks first in the market of brain protein hydrolysates in China.
Independent production mode and third-party cooperative production mode go hand in hand. The main products of the company are: monosialic acid tetrahexose ganglioside sodium raw material drug (Yueyang Sailong production) and injection (southwest pharmaceutical production), brain protein hydrolysate for injection (Shanxi Pude production), clindamycin phosphate for injection, pantoprazole sodium for injection and milinone injection. Among them, GM1 raw material medicine is produced by Yueyang Cylon and supplied to Southwest Pharmaceutical Co., Ltd., which is sold by Zhuhai Cylon after being made into injection.
In the follow-up, the variety application is under way, and it is expected that there will be relay production in the near future. In the field of research and development, the company has a total of 19 varieties in the review or obtained clinical approval, mainly digestive system drugs. The company's 3.1 new drug levopantoprazole sodium has obtained clinical approval and is currently carrying out clinical trials. In addition, more than a dozen drugs under research have been declared for CFDA and are currently undergoing technical evaluation, and there are many varieties under study, including new technical varieties of controlled-release injections and other preparations.
Valuation and investment suggestions: we expect the company's income growth rate to reach 9%, 10% and 11% in 17-19 years. The net profit achieved in 17-19 is 66 million yuan, 72 million yuan and 79 million yuan, respectively, and the corresponding EPS is 0.41, 0.45 and 0.49 yuan, respectively.
Risk hints: new drug R & D review risk, cooperative production mode risk, environmental protection risk
