Multi-channel expansion of traditional core products to consolidate the advantages of subdivided areas
The company is a platform enterprise covering facial features, respiratory department, cardio-cerebrovascular and other fields, and has formed "innovation barrier medicine equipment", "brand medicine", "integration of raw materials and preparations" and "health products".
The four major business sectors. Some products such as Ruizhu, Hemingmu tablets, Cherokee and other products have the advantages of multi-channel sales and brand recognition, and occupy a higher market share. Raw materials and pharmaceuticals are located in the industrial chain of the integration of raw materials and preparations, biotechnology and health plate horizontally expand overseas markets, and vertically lay out large health business.
Innovative layout and characteristic track, the global blueprint is getting better and better.
Since 2015, the company has accelerated its innovation transformation, successively laid out three core strategic areas of "accurate interventional diagnosis and treatment, anti-tumor, facial features and anti-infection", and has completed equity acquisitions of 10 companies at home and abroad. There are 22 innovative products and nearly 500 R & D teams. 4 major R & D platforms and 5 major R & D centers have been established. Innovative projects cover the whole stage from preclinical to NDA. At present, a new pattern of domestic and international double-cycle development has been formed, and the layout of globalization has continued to advance in depth.
To create a precise interventional diagnosis and treatment platform, innovative pharmaceutical equipment is about to be harvested. Cadenot Restore will be put on the market in 2019. It is the only drug-coated balloon in China with dual indications for in-stent restenosis (ISR) and small vessel disease (SVD). APERTO, which is the exclusive treatment of arteriovenous fistula stenosis in dialysis patients, was approved and listed in 2020. Another blockbuster product, Sirtex's yttrium 90 resin microspheres, has been exempted from clinical declaration, and domestic NDA has been accepted. It is expected to be approved for market from the end of 2021 to the beginning of 2022, providing a new treatment scheme with clinical advantages for patients with advanced hepatocellular carcinoma (HCC) and colorectal cancer liver metastasis (mCRC).
Risk hint
The cost of medical insurance control exceeded expectations, product sales fell short of expectations, and product research and development fell short of expectations.
Investment advice: rise abruptly based on accumulated strength and have a bright future. "buy" is recommended.
The estimated return net profit for 2020-22 is HK $1.65 billion for 2020-22, a growth rate of 26.8%, 12.8%, 15.2%, and the current share price corresponds to PE 15, 13max, 12X. Combining absolute valuation and relative valuation, the company's one-year reasonable share price is at HK $8.22 to HK $9.08, compared with the current share price (HK $6.28), which has a premium of 31%. It is covered for the first time and is given a "buy" rating.