share_log

仁和药业(000650)公告点评:三季报预告发布 业绩持续快速增长

廣發證券 ·  Oct 10, 2018 00:00  · Researches

Core view: Net profit for the first three quarters increased by 45%-60% year on year, and linear rapid growth in performance. The company released a performance forecast for the first three quarters. It is expected to achieve net profit of 375-414 million yuan in the first three quarters, an increase of 45%-60% over the previous year, with a median value of 52.5%. The third quarter is expected to achieve net profit of 130 to 169 million yuan, a year-on-year increase of 34.56%-74.56%, with a median value of 54.56%. (The 1H18 Company achieved operating income, net profit, and net profit after deduction of net profit of 2,265 million yuan, 244 million yuan, and 243 million yuan, respectively, year-on-year increases of 26.68%, 51.27%, and 53.78%.) The trend of rapid growth in the company's performance continues. The growth rates of 1-3Q18 and 3Q18 are close. It is expected that various businesses will maintain a rapid growth trend. Judging from the situation in the first half of the year, commercial subsidiaries will maintain rapid growth. Among them, Renhe Pharmaceutical is mainly responsible for branded products and is the subsidiary with the fastest profit growth. 1H18 revenue and profit were 404 million yuan and 45 million yuan respectively, up 31.83% and 238.18% year on year. The share of high-margin products increased, and the share of high margin products increased, while the share of OEM declined, and the profit margin increased 6.84pct year on year. Renhe and Zhongfang were originally responsible for general medicine and OEM business. They first implemented direct control terminal business and strong sales capacity. 1H18 achieved revenue and net profit of 869 million yuan and 79 million yuan, respectively, up 30.45% and 22.14% year-on-year. Since the performance growth rate for the first three quarters is close to the growth rate for the third quarter, we expect all sectors of business to maintain a rapid growth trend in the first half of the year. The continued increase in the proportion of its own products will drive the increase in gross margin, and the company has promoted industrial upgrading in recent years, producing its own approved products as much as possible, and reducing its dependence on OEMs. Judging from the interim report, several core industrial companies all grew rapidly (1H18 Tonggu Renhe, Yaodu Renhe, Shining Pharmaceutical, and Zhangshu Pharmaceutical increased by 53.69%, 26.07%, 105.52%, and 33.98%, respectively). The increase in the share of its own products has led to a continuous increase in gross margin. The overall gross margin of 1H18 is 42.20%, an increase of 5.46pct over the previous year. Currently, OEM still accounts for about 40%, and there is still room for replacement of own products in the future. The performance for 18-20 is expected to be 0.45 yuan/share, 0.58 yuan/share, and 0.73 yuan/share, respectively. The company is one of the brand OTC companies with the strongest sales capacity in China. Industry policy changes favor sales control model sales, and the company promotes the implementation of a gold single product strategy, management and incentive mechanism. The company's EPS for 18/19/20 is expected to be 0.45/0.58/0.73 yuan. The current stock price corresponds to PE 14/10/8 times, maintaining the “buy” rating. Risks indicate the risk that product sales will fall short of expectations due to increased competition in the industry; the risk that industry policies will be unfavorable to products; and the risk that OEM business production will be unstable.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment