The company's revenue in the first half of the year increased by 24.92% over the same period last year, and its cash flow improved significantly.
The company released its 2019 semi-annual report that in the first half of the year, the company achieved revenue of 843 million yuan, an increase of 24.92% over the same period last year, a net profit of 175 million yuan, an increase of 6.97% over the same period last year, and a net profit of 117 million yuan, an increase of 10.84% over the same period last year.
The cash flow of the company's operating activities improved significantly, from-55 million yuan in the same period last year to 57 million yuan, mainly due to the increase in sales payments received in the first half of the year.
The sales of APIs continue to develop, and foreign areas are developing at a high speed.
The company's revenue from biochemical drugs in the first half of the year was 843 million yuan (+ 24.92%), with a gross profit margin of 43.76%, slightly lower 2.64pp than the same period last year. In terms of products, the company's revenue from the API series in the first half of the year was 442 million yuan (+ 37.47%), with a gross profit margin of 18.69% (- 0.48pp). The company tapped the heparin sodium API market and continued to give full play to the advantage of production, supply and marketing, resulting in a substantial increase in sales revenue of API products. The income of the preparation series is 401 million yuan (+ 13.49%), and the gross profit margin is 71.39% (+ 0.21pp). The steady increase in preparation revenue is mainly due to the implementation of diversified marketing in the first half of the year, and then the steady growth of sales revenue, product structure is also increasingly optimized, to achieve a certain brand and scale effect.
The company's overseas revenue in the first half of the year was 380 million, a substantial increase of 43.63%, accounting for 45.10% of the total revenue. The total sales cost increased by 29.02% compared with the same period last year, and the sales scale was further expanded. In foreign countries, the company has formed a professional international marketing team, widely spread the marketing network, adopted the mode of international cooperation, and cut into the industrial chain division of labor and product distribution channels of multinational companies in Europe, the United States and Japan. implement the strategic goal of paying equal attention to the export of API and high value-added products and product transformation and upgrading.
R & D investment increased by 2.93% compared with the same period last year, and R & D projects were carried out smoothly.
In the first half of the year, the company invested 33.65 million yuan in R & D, an increase of 2.93% over the same period last year. The clinical research and preclinical research work of the macromolecule and small molecule R & D platform has been carried out smoothly, among which the small molecule drug development platform QHRD107 project has entered the Ⅰ clinical phase; the QHRD110 project cooperates with Medici to carry out the integration of preclinical research and clinical application; the ZHB202 and ZHB206 projects of the macromolecule R & D platform have also completed the preclinical research work and are in the process of clinical declaration, and other new drug projects are also in the process of smooth progress.
Be optimistic about the expansion of the company's sales scale and the increase of foreign income, and maintain the "buy" rating.
The revenue of the company's preparation series in the first half of the year fell short of expectations, and we slightly lowered our profit forecast, adjusting the net profit forecast for 2019 / 2020 from 358,447 million yuan to 240,268 million yuan, and the current price corresponds to 27,24,22 times of PE in 2019-2021. With the optimization of the company's sales model and the increase in the proportion of foreign business, the company is expected to accelerate the strategic goal of product transformation and upgrading and maintain "buy".
Rating.
Risk tips: new drug research and development is not as expected; the impact of drug price bidding policy; exchange rate fluctuations affect export product income