Recommended logic: 1) Tadalafie has a large imagination, terminal sales are about to begin, and the annual income may exceed 200 million yuan; 2) Nano-carbon tracers have a good lymphatic tendency, with a penetration rate of more than 50% for thyroid tumors, gradually expanding into the field of breast tumors, and is expected to maintain a high growth rate of more than 25%. 3) esomeprazole enteric-coated capsule bid-winning provinces continue to increase, the market pattern is good to maintain price stability, is expected to maintain growth of about 35%; 4) subsidiary Hunan Kangyuan profit or reverse.

Take Tadalafe (Xin Weige) as the core to create a new drug retail platform. The drug was originally developed by Eli Lilly and Co and its indication was erectile dysfunction (ED). It was put on the market in China in 2005. Changchun Haiyue completed its first domestic imitation in 2019, and the company announced that its sales agency in China would be granted exclusively to Laimei. Tadalafil has the advantages of being effective for a long time and free from alcohol and dietary restrictions. Referring to the historical case of Baiyunshan Jinge, it sold about 2.9 million tablets in the year after it went on sale in October 2014 and more than 4700 million tablets in 2018. The market size of sildenafil is optimistically estimated to be nearly 5 billion, and the ED drug market may exceed 6 billion, with a large market space. According to Xin Weige's overall progress estimate, it is expected that the goods will be put on the market in April, which is non-health insurance and is not affected by consistent evaluation, and is not affected by volume purchases. It is conservatively estimated that the revenue increase brought by Tadalafe in 2019 may exceed 200 million yuan. Sales peak reference Jinge or exceed 1 billion yuan, such as cooperation with e-commerce and other new retail platforms may exceed expectations.

Take nano-carbon suspension injection (Carnarine) as the core to build the oncology specialist product line. Nano-carbon suspension injection (Carnarine) is the only approved lymphatic tracer in China. it has a good lymphatic tendency and is absorbed by the lymphatic system to dye the lymphatic network and lymph nodes black to achieve the purpose of lymphatic tracer. 1) at present, Carnarine is widely used in the field of thyroid cancer, and a lot of academic work has been carried out, with a penetration rate of more than 50% and high recognition by experts. Carnarine does not belong to health insurance, but it can avoid the risk of operation, doctors and patients are more willing to use it, and the pressure of price reduction is small. Judging from the bidding situation over the years, the price is well maintained, and the 50mg specification is basically maintained at 2400 yuan per branch. Carnarine is mainly sold in tertiary hospitals and has been used in gastric cancer, thyroid cancer, breast cancer, bowel cancer and other fields. with the increase of permeability and the expansion of indications, the income may increase rapidly. the sales revenue is expected to exceed 1 billion yuan within 5 years. 2) in the construction of nano-carbon drug platform, the prospect of drug loading function is promising. As the product has a good basis for doctors and patients, and the main consumer groups are women, it can create a pharmaceutical ecology and expand to the field of scar removal and cosmetology in the later stage. At the same time, because of the advantage of cluster size and adsorption capacity, nano-carbon has the function of drug targeted sustained release. The company's research products such as gemcitabine, gefitinib and lenalidomide can form channels with nano-carbon, while grafted nano-carbon and grafted nano-carbon injection are doing preclinical research. if it can be successfully put on the market, it will also drive the company's tumor drug sales.

Take esomeprazole enteric-coated capsule (Leimeishu) as the core to create a hospital prescription drug sales position. The terminal size of oral PPI preparations is nearly 10 billion, with a compound annual growth rate of about 9 per cent in the past five years. Esomeprazole enteric-coated capsule (Lemesu) is the first domestic exclusive imitation of four kinds of new drugs, oral dosage form and regarded as an upgraded version of omeprazole through consistency evaluation. The approval document was obtained in 2013 and went on the market in 2014, and the sales were lower than expected due to the bidding schedule in the early stage. However, with the promotion of provincial bidding, the country has basically won the bid, from the provincial winning price point of view, better maintenance, maintained at more than 65 yuan / box. The restrictions on the use of PPI injection forms in the new health insurance catalogue will also be beneficial to oral administration, and the price may remain stable under the exclusive dosage form pattern. In terms of sales strategy, we have also changed the mode of admission to hospitals in the previous provinces and regions, and set up a professional team to promote it. It is estimated that the sales revenue will exceed 1 billion yuan within 5 years. Other prescription drugs such as voriconazole, proglutamine series or through the company's hospital channels to achieve sales growth.

Profit forecast and investment advice. It is estimated that the compound growth rate of income is about 30 per cent in 2018-2020, the compound growth rate of net profit in the period is about 60 per cent, and the compound growth rate of net profit after deducting non-profit is about 70 per cent, of which 2019 is deducting non-performance growth or more than 100 per cent. With reference to the comparable company's valuation, the company is given a price-to-earnings ratio of 45 times 2019, corresponding to a target price of 8.55 yuan, maintaining a "buy" rating.

Risk tips: 1) product sales may be lower than expected; 2) drug price reduction risk; 3) subsidiary loss increase risk; 3) other unpredictable risks.