Events:
The company released its quarterly report for 2019: revenue of 211 million yuan, an increase of 28.73% over the same period last year; net profit of 22.2696 million yuan, an increase of 31.10% over the same period last year; and 0.19 yuan per EPS per share.
Main points of investment:
Torasemide, the main product, is growing rapidly, and cefoxime sodium continues to be released.
In the first quarter of 2019, the revenue of Torasemi, the main product, was 88.5118 million yuan, up 38.83 percent from the same period last year, and the sales volume was 6.8448 million (equivalent to 10mg), up 34.51 percent from the same period last year. Cefoxime sodium revenue was 7.4756 million yuan, up 156.79 percent from the same period last year, and sales were 95100, an increase of 203.64 percent over the same period last year. In addition, the income of tegacycline was 9.4625 million yuan, an increase of 26.93% over the same period last year, and sales of 25600 units, an increase of 43.05% over the same period last year, maintaining rapid growth. On the other hand, the income of cefoteam was 31.7478 million yuan, up 15.07% from the same period last year, and the sales volume was 2.0038 million (equivalent to 0.5g), up 0.82% from the same period last year. Lansoprazole's income was 12.2813 million yuan, down 27.01% from the same period last year, and sales were 528600, down 24. 44% from the same period last year. Zhenjiang Derui subsidiary was officially put into production at the end of 2018 and achieved 14.7647 million yuan in intermediate and API sales income in the first quarter of 2019, providing a new profit growth point for the company.
The rate of sales expenses has greatly reduced and thickened performance.
The comprehensive gross profit margin in the first quarter of 2019 was 81.61%, down 3.10 percentage points from the same period last year, mainly related to the new Zhenjiang Reed products. In terms of period expenses, due to the 6.67% year-on-year reduction in sales expenses, the three rates were reduced by 2.75%, while R & D expenses were 11.878 million yuan in the first quarter, an increase of 240.34% over the same period last year, reflecting the increase of the company's research investment.
Maintain the recommended rating.
Maintain the previous forecast, 2019-2021 EPS is 0.91,1.17,1.41 yuan, taking into account the high certainty of the company's performance growth, coupled with the strength of innovation and research and development, maintain the "recommendation" rating.
Risk Tips:
The risk of drug price reduction; the slow progress of product research and development; the slower than expected sales promotion and so on.