Events:
The subsidiary Foshan palm received the Drug GMP Certificate issued by the Guangdong Drug Administration, which was re-obtained after the original certificate expired and re-certified. In addition, Yongtai Pharmaceutical, a subsidiary of Yongtai Pharmaceutical Co., Ltd. recently received notification from FDA of the United States, and the application for rosuvastatin calcium tablets (ANDA) submitted by Yongtai Pharmaceutical Company to FDA of the United States has been approved.
Comments:
1. The advantage of vertical integration of the company's pharmaceutical industry chain is obvious, which helps the company to enter the fast lane.
In the pharmaceutical sector, the company builds a vertically integrated industrial chain from filling intermediates to APIs to preparations, through the acquisition of APIs platform Zhejiang Palm, preparation platform Foshan Palm and Binhai Meikang, and the construction of API platform Yongtai Palm and preparation platform Yongtai Pharmaceutical Industry, which is beneficial to the whole process of the company's product series, and the cost control ability of domestic pharmaceutical enterprises is more critical under the volume procurement mode. The cost advantage of the whole process integration of chemical industry and medicine is stronger than that of traditional pharmaceutical enterprises. The subsidiaries of the company's pharmaceutical sector have successively obtained American ANDA and domestic drug GMP certification, and in the future, a number of drugs will pass ANDA certification to help the company enter the fast lane.
2. The company's performance this year ushered in an inflection point, and the endogenous epitaxial two-wheel drive strategy advanced steadily.
With the rapid growth of sales of pesticide intermediates, the production capacity of new intermediates gradually contributed to profits, and the loss-making subsidiaries turned into profits before, multiple factors superimposed to promote the company's performance to usher in an inflection point in 2019. The company's fluorine-containing intermediates are widely used because of their excellent characteristics in downstream products, and have established stable cooperative relations with downstream German customers such as Merck, BASF, Bayer, etc., with the continuous release of new production capacity of the company, orders for traditional endogenous intermediates are gradually increasing. Through the acquisition of the pesticide and pharmaceutical business plate to build a vertical integrated industrial chain from intermediates to APIs to preparations, the good effect of coordinated development in the future will gradually appear.
3. A number of projects have been put into production to ensure the future growth of the company.
The company's continuous capital expenditure ensures the company's future growth, a number of projects have been put into production one after another to ensure the development of the company into the fast lane, and projects such as the production capacity of 500 tons of difluorosulfonimide lithium are about to be put into production. Yongtai palm under construction in Linhai and the planned Inner Mongolia Wuhai fine chemical base are the expansion and upgrading of the company's existing products and will become the main growth point in the next three years.
4. Maintain the "highly recommended-A" rating.
It is estimated that the company's net profit from 2019 to 2021 is 470 million / 672 million / 855 million yuan, corresponding to PE 17.6, 12.3, 9.7, deducting non-return net profit, 403 million / 594 million / 773 million, and PE, 20.4, 14, respectively, maintaining the "highly recommended-A" rating.
Risk hints: the sales volume of products is lower than expected, the profit of acquired assets is lower than expected, and the progress of projects under construction is lower than expected.