The company recently released its financial report for the third quarter of 2017, showing an increase of 98.31% in operating revenue and 13.91% in net profit deducted from the same period last year.
The company's operating profits continued to rise steadily. Operating income increased by 98.31% over the same period last year, and net profit after deducting non-return increased by 13.91% per share, up 48.65% from the same period last year. Accounts receivable increased by 52527.57% over the same period last year, mainly due to the fact that the implementation of the "two-vote system" avoided layer-by-layer price increases in the circulation field and the expansion of profit space for the company's main brain high-end drugs. Sales expenses increased by 464.4%, mainly due to the increase in sales channel construction and marketing expenses in 2017. Financial expenses fell by 107.4%, mainly due to the fact that the company raised funds to repay some of its debts after listing. The management fee increased by 0.20%, which is within the acceptable range. In terms of total revenue in the first three quarters, operating income increased by 40.32% compared with the same period last year, while net profit decreased by 1.57% compared with the same period last year. A large part of the increase in revenue came from 5.2291 million innovation incentives and subsidies given by the Guangdong municipal government to listed companies.
The progress of the follow-up declaration of varieties under development is in line with expectations. 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. Among them, the company's three new drugs dextrolansoprazole, 3.1 drugs pareoxib sodium and tegacycline, six drugs Agatroban injection, thymus Faxin for injection, ornithine aspartate injection and other declared products are under review and approval.
The progress of the fund-raising project is in line with expectations. The company raised funds for the construction of three projects Changsha production and R & D base construction project, marketing network construction project, and supplementary liquidity progress in line with expectations, especially the company's pre-listing core product GM1 preparation currently covers about 1500 hospitals, accounting for less than 10% of the total number of national rated hospitals. Product coverage was effectively improved in 2017.
Valuation and investment advice: we maintain the previous forecast that the company's revenue growth rate in 17-19 is expected to reach 9%, 10% and 11%. The net profit achieved in 1719 is 66 million yuan, 72 million yuan and 79 million yuan, respectively, and the corresponding EPS is 0.41 and 0.45 yuan, respectively.
Risk hints: new drug R & D review risk, cooperative production mode risk, environmental protection risk