Kehua Biology released 2018-Quarterly report: in the first quarter of 2018, the company's revenue was 452 million yuan, up 25.08% from the same period last year; the net profit was 49 million yuan and 48 million yuan, up 10.89% and 18.47% respectively over the same period last year. The company's 2018H1 net profit is expected to be 1.26-152 million yuan, an increase of 0% over the same period last year.
Performance returned to rapid growth, gross profit margin and period expense rate increased. 2018Q1 achieved rapid growth, on the one hand, the company actively promoted the channel layout, sales growth gradually recovered; on the other hand, the company digested channel inventory in the same period last year, resulting in a low base. 2018Q1's gross profit margin is 37.53%, an increase of 4.Olpct over the same period last year, which should be related to the increase in gross profit margin of agency products. The company's sales expense rate was 12.82%, which was the same as that of the same period last year; the intermediary service fee paid by channel mergers and acquisitions increased the management fee rate to 9.64 ‰, an increase of 1.85 pct over the same period last year; and the financial expense rate was 0.56%, an increase of 1.19pct over the same period last year.
Product layout continues to improve, performance is expected to continue to recover. The company has gradually formed five major product lines of biochemistry, enzyme immunity, photoimmunity, POCT and molecular diagnosis, and the performance is expected to continue to recover. The company's biochemical business has obvious competitive advantages, consolidating terminal coverage with "instruments + reagents"; nucleic acid blood screening business is expected to seize the first opportunity when the blood screening policy of the plasma station hits the ground. The chemiluminescence complementary advantage of "self-produced Excellence + TGS+ Biokit" continues to improve, and the sales volume is worth looking forward to; invest in natural biological layout fluorescent PCR technology to strengthen molecular diagnosis. In addition, the company's gold standard Ⅲ V products once again passed the WHO examination and approval, and the export business gradually resumed.
Equity incentives enhance cohesion and channel integration to establish terminal advantages. In February 2018, the company launched the second phase of the equity incentive plan, which greatly enhanced the enthusiasm of the core team. The company actively promotes channel integration. After holding Xi'an Shenke and Guangdong Xinyou in 2017, the company realized the holding of three high-quality regional dealers in Nanjing Yuanheng, Guangzhou Kehua and Jiangxi Kerong in January 2018, and the terminal control capacity was greatly improved. In addition, the company continues to make breakthroughs in the collection and packaging business, and actively tries to build a regional inspection center to help the company's performance grow rapidly.
Maintain the "buy, rating: from 2018 to 2020, the EPS is expected to be 0.48,0.56,0.65 yuan respectively, corresponding to 29 times, 25 times and 21 times of PE, and maintain the" buy "rating.
Risk hint: new product R & D approval and sales promotion are not as expected.