The company released its three-quarter report for 2017, with income, net profit and non-return net profit of 2.874 billion yuan, 316 million yuan and 298 million yuan respectively, + 7.07%, + 8.99% and + 2.95% respectively compared with the same period last year. Lopatinum sales maintain rapid growth, sales cost control to enhance the profitability of 17Q3, optimistic about the company's future growth after the improvement of product sales structure and the outbreak of medical services business, maintain prudent recommendation rating.
17Q3 sales expense control to improve profit level. 2017Q3 revenue 922 million yuan, year-on-year-3.75% The gross profit margin is 75.93%, down 1.59% from the same period last year. We estimate that the implementation of the national minimum price of Aidi injection in some provinces affects income growth and the level of gross profit margin, but the gross profit margin has improved month-on-month (17Q1 and 17Q2 gross profit margin decreased by 7.74% and 5.00% respectively). We estimate that the impact of factors such as implementing the lowest price on gross profit margin is gradually eliminating. The rate of 17Q3 sales expenses was 45.45%, down 6.25% from the same period last year. Cost control was effective and became the main factor affecting the level of net profit in the current period. The rate of administrative expenses was 10.64%, an increase of 2.35 percentage points over the same period last year. The net profit of 17Q3 is 132 million yuan, + 12.58% compared with the same period last year, and the non-return net profit is 12.7 billion yuan, + 12.82% compared with the same period last year.
Lobaplatin continues to increase volume, and the product sales structure is gradually improved. The company's 17Q1-3 revenue is 2.874 billion yuan, + 7.07% compared with the same period last year. We estimate that the company's platinum chemotherapy drug Lobaplatin maintains a rapid release, with a year-on-year growth rate of about 50%. We expect that 17-year sales are likely to exceed 700 million yuan, accounting for more than 15% of the company's sales, which can significantly improve the sales structure of the company's antineoplastic products. The sales expense rate of 17Q1-3 was 48.84%, down 4.45% from the same period last year.
Multi-varieties benefit from the adjustment of health insurance catalogue. In 17 years, the medical insurance catalogue was adjusted, the company's products Ai Yu capsule, Liqi Huoxue dropping pills, Dan Deng Tongnao dropping pills and gynecological Tiaojing dropping pills were newly entered into the medical insurance catalogue, and the indications of Lobatin and compound Mylabris capsules were lifted. Baogong Zhixue granule and Fuyanxiao capsule medical insurance classification was adjusted from Class B to Class A.
Profit forecast: the company's 17-and 18-year homing net profit is expected to grow by 9% and 15% respectively. The sparing EPS is 0.53 yuan and 0.61 yuan respectively. The company's products benefit from the adjustment of health insurance, look forward to the continuous growth after the improvement of its product sales structure, be optimistic about the continuous landing of the company's oncology medical service program, and maintain a prudent recommended rating.
Risk tips: product sales are not up to expectations; bidding and price reduction risk; medical service target M & A progress is not up to the expected risk.