Operating data:
In 2014, the company achieved operating income of 566 million yuan, an increase of 149.54% over the same period last year. The net profit belonging to shareholders of listed companies was 73.6539 million yuan, down 47.20% from the same period last year, corresponding to earnings per share of 0.1451 yuan.
Net profit is much lower than expected. During the reporting period, the company realized operating income of 565.8202 million yuan, an increase of 149.54% over the same period last year. The net profit attributed to shareholders of listed companies was 73.6539 million yuan, down 47.20% from the same period last year, which was lower than previously expected. The sharp decline in net profit is mainly due to the non-recurrent profit and loss of 104.2402 million yuan generated by the company's overall acquisition of Sands Pharmaceutical in 2013, which is included in the current investment income at one time; after deducting non-recurrent profit and loss, the company achieved a net profit of 64.4278 million yuan this year, an increase of 97.34% over the same period last year.
The advantage of acquiring Sands is highlighted. The positive role of the company's acquisition of Sands Pharmaceutical in 2013 began to highlight, and the sales and production of the pharmaceutical industry increased significantly. In addition, Sands Pharmaceutical has always paid attention to independent research and development, has a variety of national exclusive products such as Jiegu Qili tablets, and carries out in-depth exploration and secondary development of the existing products. The company not only enriches its product structure, but also greatly improves its R & D strength. In 2014, the company's R & D expenditure was 15.2449 million yuan, a substantial increase of 645.44% over the same period last year. The proportion of R & D expenses in operating income increased from 0.9% to 2.69%, and the proportion of net assets increased from 0.25% to 1.77%.
Internal and external factors promote industry adjustment, and medical reform promotes the transformation of the company. Under the dual influence of external factors such as medical insurance control fees, the new version of GMP/GSP reform and inspection, and the frequent reshuffle of industry competition, the growth rate of the pharmaceutical industry began to slow down in 2014, and industry consolidation is the general trend. With the deepening of medical reform, important changes will continue to take place in the pharmaceutical industry in 2015. The reform of the rural and community medical system will continue to deepen, and the company will further open up the rural and community markets by virtue of its advantages such as low price, good quality and reasonable structure. In addition, Sands Pharmaceutical's long-term R & D accumulation, good reputation and brand effect have improved the company's competitive advantage in other areas, as well as obvious advantages in pricing and bargaining. In 2015, the company will formulate a market-oriented marketing strategy, continue to strengthen research and development, and wait for the outbreak in the spring tide of health care reform.
Profit forecast and valuation. We estimate that the company's EPS from 2015 to 2017 will be 0.194 yuan / 0.272 yuan / 0.361 yuan respectively. We are optimistic about the development space of the company's mid-and low-end market and R & D capabilities, and maintain the "overweight" rating.