Events: the company released its 2016 semi-annual report on August 11, achieving operating income of 551 million yuan, up 71.74% over the same period last year; net profit of 153 million yuan, up 75.18% over the same period last year; deducting 147 million yuan of non-return net profit, up 69.57% over the same period last year; and realizing EPS0.23 yuan.
Comments:
The scope of consolidation has increased, and the performance of the statements has increased significantly. The reverse merger completed in September 2015 led to an increase in the scope of the merger in the first half of 2016, which resulted in an increase in the parent company's operating income and sales in the reporting period, which significantly increased the performance of the 2016 interim report. Of this total, the revenue of the chemical business division was 181 million yuan and the net profit was 54 million yuan, which was basically the same as that of the same period last year; the revenue of the pharmaceutical business division was 369 million yuan, an increase of 14.80% over the same period last year, and the net profit was 92 million yuan, lacking comparable data for the same period last year.
The growth rate of the industry has slowed down, and sales of major products have increased or decreased respectively. As for the holding company, Weiming Biopharmaceutical achieved a net profit of 108 million yuan; Tianjin Weiming realized a net profit of-15.629 million yuan, with a loss of 18.73% over the same period last year. In terms of main products, rat nerve growth factor en received 344 million yuan after resumption of operation, an increase of 18.27% over the same period last year, which may be due to a long-term high market share, high drug market recognition and effective promotion; recombinant human interferon α 2b had a revenue of 25 million yuan, down 18.20% from the same period last year, which may be due to the pressure of imported long-acting interferon and small market share.
Affected by the second type of seedling channel reshaping, Beijing Science and Technology performance dropped sharply. The revenue of Beijing Science and Technology was 61 million yuan, down 63.74% from the same period last year, and the net profit was-34 million yuan, down 211.50% from the same period last year, mainly due to the adjustment of class II vaccine policy and poor circulation channels. On June 8, the company's new EV71 vaccine was shipped and sold, and we look forward to achieving volume sales in the future.
The indication of rat nerve growth factor was broadened and approved clinically. On August 10, Weiming Biomedical Medicine was endorsed as a clinical trial with diabetic foot as the proposed indication. Diabetic foot means that the lower limb protection function of diabetic patients decreases due to neuropathy, which is one of the most serious and expensive chronic complications of diabetes. At present, there are no nerve growth factor-related products for the treatment of diabetic foot on the market at home and abroad. The continuous expansion of mouse nerve growth factor indications is an effective means to enhance product competitiveness, open market space and ensure market share.
Profit forecast and investment advice. We are optimistic that the company is the double main business of "Wanchang headquarters + unknown Medicine", and has a solid layout in the field of biological products, and the follow-up expansion of new products is full of motivation. Looking forward to the sales growth brought by the widening of mouse nerve growth factor indications and the performance improvement brought by the reorganization of vaccine channels in the second half of the year, it is estimated that the EPS from 2016 to 2018 will be 0.62,0.75,0.92 yuan respectively. With reference to the valuation of comparable companies, the PE of 52X in 2016 is given, corresponding to the target price of 32 yuan. Maintain a "buy" rating.
Risk hint: the risk of new product research and development and promotion, the progress of privatization, the progress of extension.