Core opinion The performance is in line with expectations. The company announced its annual report and quarterly report. It achieved revenue of 1,213 billion yuan for the full year of 2018, an increase of 15.20% over the previous year, net profit attributable to shareholders of listed companies of 318 million yuan, an increase of 5.96% year on year, corresponding to EPS of 0.79 yuan, in line with our expectations. At the same time, the company also announced the first quarter report of '19, achieving revenue of 254 million yuan, a year-on-year increase of 11.78%, net profit of 85 million yuan, a year-on-year increase of 9.98%, and continued to maintain steady growth. In terms of expenses, the sales expense ratio for the Q1 quarter was 40.65%, up 0.42 percentage points from the same period last year, and remained basically stable; the management expense ratio was 8.20%, up 1.67 percentage points from the same period last year. It is estimated that this is mainly due to amortization of equity incentive expenses. Continue to strengthen channel expansion, and the characteristic academic marketing system has promoted the steady growth of the company's paste. During the reporting period, on the one hand, the company's products were widely covered in hospitals, grassroots, and OTC through a self-operated sales model, combined with the investment model, so that the company's products were widely covered in hospitals, grassroots, and OTC; on the other hand, in the field of academic promotion, the company gave full play to the unique treatment advantages of Tibetan medicine and provided patients with “integrated pain products+special solutions for Tibetan medicine”, which further promoted the steady growth of the company's core varieties of plasters. Currently, clinically, there are no relatively authoritative solutions in the field of pain treatment. The company uses pain as an entry point, which is expected to further enhance the company's influence in the specialty field. Equity incentives have been implemented, and long-term stable development can be expected. After adjustments over the past few years, the company's future development strategy has gradually become clear. That is, under the “one axis, two wings, three supports” strategy, pain relieving paste will become the leading brand in the external pain relief category. In order to further mobilize the enthusiasm of the company's core personnel and promote the rapid development of the company, in March of this year, the company launched an equity incentive plan. This time, 65 people, including company directors, senior managers, and core managers, were awarded a total of 2,438 million shares at a grant price of 14.03 yuan/share. It is expected that after equity incentives, individual company operators can be combined with the company's interests to further promote the company's long-term stable development. The financial forecast and investment recommendations take into account the company's good performance in the first quarter and the implementation of equity incentives. We slightly raised the company's profit forecast for 2019-2021. We expect the company's EPS for 2019-2021 to be 1.00/1.08/1.15 yuan respectively (the original 19-20 forecast was 0.97/1.08 yuan). According to comparable companies, the company was valued 31 times in '19, corresponding to the target price of 31.00 yuan, maintaining an increase in holdings rating. Risk warning if the company's brand promotion falls short of expectations; channel promotion falls short of expectations
奇正藏药(002287):业绩稳健增长 战略布局逐渐清晰
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The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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This page is machine-translated. Futubull tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation.