Events:
The company recently issued a half-year 2019 performance forecast, business revenue is expected to grow by not less than 20% year-on-year, and net profit is expected to be about 60 million yuan to 70 million yuan, an increase of 34.71% Muth57.16% on July 12, 2019. At the same time, the company issued an announcement on the signing of the "Cooperation Framework Agreement" with China Development Venture Capital. At 9:30 on July 25, 2019, the company organized an institutional research conference call.
Comments:
Speed up the divestiture of non-pharmaceutical businesses and develop venture capital in the alliance to focus on the development of the pharmaceutical health industry:
After the company's board of directors identified "Pharmaceutical Great Health" as its main business in 2015, it gradually spun off non-pharmaceutical projects such as Zhongguancun Construction and Harbin Zhongguancun, so as to provide financial guarantee and optimize the business structure for the pharmaceutical health industry. in the future, the company will speed up the divestiture of the existing precipitated stock assets and non-pharmaceutical business, and focus on expanding and strengthening the pharmaceutical health industry. In July this year, a strategic cooperation agreement was signed with Zhongguancun Development Group, a wholly-owned subsidiary of Zhongguancun Development Group. (Zhongguancun Development Group was established in 2010. It is a large state-owned enterprise of the Beijing municipal party committee and municipal government to further speed up the construction of Zhongguancun national independent innovation demonstration zone, strengthen the overall planning at the municipal level and allocate innovative resources by market-oriented means. In the future, we will make full use of the shareholder resources, project resources, investment and financing and other financial service advantages and brand influence of China Development Venture Capital, increase support for biomedical and other large health industry projects, and plan non-public offerings of shares. further optimize the shareholder structure and increase investment in the pharmaceutical health industry.
Through the consistency evaluation, the forecast performance of the core varieties in 2019 increased by 34.71% 57.16% compared with the same period last year.
The company's star products are mainly Huasu tablets, Bosu and Flying Sailor, among which Huasu tablets tap potential profits by cooperating with chains and enriching derivative products on the basis of stable market share. Bosu can carry out differential promotion to ensure stable performance growth because the products of the two specifications have passed the consistency evaluation. The company is rich in research and reserve products, including innovative drugs, generic drugs and ongoing products that are carrying out consistency evaluation. At present, innovative drugs are carrying out preclinical evaluation and designing clinical trial programs, and generic drugs are steadily promoting pharmaceutical research. Benidipine Hydrochloride and Tramadol Hydrochloride are expected to declare consistency evaluation in the first half of 2020. The company announced that the results in the first half of 2019 increased by 34.71% Murray 57.16% compared with the same period last year, highlighting the achievements of continuous integration and optimization of business structure.
The business of providing for the aged is oriented to the market of providing for the aged at home, and the combination of traditional Chinese medicine and outpatient care is built.
The pension service system has great potential for the development of the pension service market. The pension service industry advocates the "9064" model. 90% of the elderly choose family pension, 6% choose community pension, and 4% choose institutional pension. At present, the company is based on the development of community pension, and gradually enters the field of home pension, that is, 90% of the home pension market will bring benefits to the company in the future. Through the acquisition of Beijing Jihetang Chinese Medicine outpatient Department, to achieve the combination of medical care, enhance the competitiveness of the company's pension service business; explore "Internet + pension", establish a medical, health, care, care four-in-one, all-round, full-cycle pension ecosystem.
Profit forecast and valuation:
According to the company's existing business situation, we estimate that the company's EPS in 19-20 is 0.13,0.15,0.16 yuan respectively, corresponding to 67,57,53 times PE, maintaining a "highly recommended" rating.
Risk tips: product sales do not meet expectations, product price reduction risk, industry policy risk.