Main points of investment

Items:

The company hired Ms. Bi Yuan as vice president.

Peace viewpoint:

When the reform is carried out, stimulate the internal motivation of the sales team: starting from 2018, the company began to carry out internal reform and re-established the goal of "taking a professional international generic drug road". Under the external pressure of the two-vote system and the limited use of auxiliary drugs, the company first carried out sales reform, supplemented by necessary personnel changes, and at the same time hired senior sales management personnel, professional sales consultants and management consulting companies. comprehensively comb the sales team from the bottom up to establish a more dynamic sales force. The subsequent listing of flurbiprofen axetil is imminent, so it is of great significance to enrich the sales force.

Flurbiprofen axetil is expected to be available in the second half of the year or early next year: in 2018, the sales revenue of flurbiprofen axetil injection is 1.9 billion yuan (+ 20.8%), and that of flurbiprofen axetil gel paste is 750 million yuan (+ 73.1%). In 2018, flurbiprofen axetil injection was listed in Wuhan Daan. The company's flurbiprofen axetil application is progressing smoothly and is expected to become the third company.

Maintain the "recommended" rating: the company is determined to reform, flurbiprofen axetil is expected to be listed in the near future, when it will bring new growth points. To maintain the original forecast, it is estimated that from 2019 to 2021, the EPS is 0.220.23x0.26 yuan respectively, corresponding to the PE is 21x/20x/18x, maintaining the "recommended" rating.

Risk Tips:

1. Policy risk: frequent policies in the pharmaceutical industry, drug price reduction, auxiliary drug list, zero bonus and other policies all have an impact on the company's business in the short term.

2. the risk that the product can not win the bid: the company's products are basically prescription drugs and need to be sold in hospital. if the important varieties are absent in some provinces, it may affect the sales income.

3. The progress of research and development is not as expected: drug research and development may fail in the whole process, and the company has many projects under research, among which some important varieties have entered the clinical stage, which may have a negative impact if they fail.