Jingxin Pharmaceutical (002020) Company Dynamic Review: High-speed Growth of Finished Drug Business Creates Mental and Neural Pipelines to Improve Comprehensive Competitiveness
Event On April 26, the company released its 2018 annual report and achieved total operating revenue of 29.
44 ppm, an increase of 32 in ten years.
66%; net profit attributable to mothers3.
700,000 yuan, an increase of 39 in ten years.
97%; net profit after deduction 3.
160,000 yuan, an increase of 653 in ten years.
97%; basic profit income is 0.
The profit distribution plan is: a cash dividend of 3 for every 10 shares.
00 yuan (including tax), 0 bonus shares (including tax), not converted to share capital with the accumulation fund.
At the same time, the company released the first quarter report of 2019 and realized total operating income of 8.
930,000 yuan, an increase of 38 in ten years.
81%; net profit attributable to mothers1.
31 ppm, a 49-year increase of 49.
25%; basic profit income is 0.
19 yuan, an increase of 58 in ten years.
It is expected that net profit will increase by more than 50% each year from January to June 2019.
The performance was in line with expectations, the gross profit margin increased in 2018, and the company’s operating income and net profit attributable to mothers increased by 32 respectively.
66 & and 39.
97%, growth in line with expectations.
In terms of segments, the sales revenue of finished drug business16.
780,000 yuan, an increase of 46 in ten years.
95%; API revenue 8.
48 ppm, an increase of 31 in ten years.
10%; medical device revenue 3.
9.4 billion, previously unchanged.
In Q4 2018, the company realized operating income7.
11 ppm, a five-year increase of 5.
69%; net profit attributable to mothers was 29.03 million yuan, a year-on-year increase of 89.
In the first, second, and third quarters of 2018, the company’s net profit attributable to mothers increased by 20%, 30%, and 60%, respectively, and nearly 90% in the fourth quarter. The performance accelerated rapidly from quarter to quarter.
In 2018, the company set up a dedicated team of mental nerves and reorganized the OTC brand department to strengthen the academic promotion of products, and the results of marketing reform gradually appeared.
In terms of expenses, sales expenses increased by 61 each year.
93%, mainly due to the increase in sales scale; management expenses increased by 6 per year.
46%, mainly due to the increase in wages and benefits; due to the decline in interest income, the company’s financial expenses decreased by 66 compared with the same period last year.
The company’s main business gross margin was 64.69%, an increase of 6.
12 units with a net profit margin of 12.
57%, an increase of 0.
In terms of products, the gross profit margin of pharmaceutical manufacturing was 68.
26%, 武汉夜生活网 an annual increase of 5.
98%; medical equipment gross margin is 41.
16%, a decline of 0 every year.
The gross profit margin of pharmaceutical manufacturing has increased significantly, and we expect that the scale effect will gradually emerge due to the increase in sales volume.
The growth of the final drug is fast, and the growth of the raw material drug is stable and high.
Among them, Rosuvastatin earns 6.
9.3 billion, with pitavastatin income1.
1.1 billion; income from rehabilitation new liquid 2.
5.9 billion in revenue from Bacillus licheniformis1.
05 ppm; Sertraline Chloride income1.
240,000 yuan, Zuo Yi Piracetam income 35.5 million yuan.
Statin lines, digestive lines, and mental nerve lines increased by 55%, 34%, and 71%, respectively.
API segment, sales of traditional quinolone 杭州桑拿 APIs5.
4.4 billion US dollars, an annual increase of 19%; Rosuvastatin and other specialty API sales3.
40,000 yuan, an increase of 60% in ten years.
The company has continuously improved its management and technology levels, cultivated key varieties, developed new products, continuously enhanced its product competitiveness, and advanced its transformation and upgrading in an orderly manner.
Shenzhen giants realized sales revenue 3.
0.94 million yuan, of which ODM business (custom) sales3.
1.5 billion, an annual increase of 7%, and core business maintained steady growth.
Leading companies in consistency evaluation, significant import substitution opportunities In 2018, the company’s rosuvastatin (two specifications of 10mg and 5mg), levetiracetam, sertraline hydrochloride, and amlodipine besylate have successively passed consistencyEvaluation.
Among them, Rosuvastatin was the second one, Levetiracetam, Sertraline hydrochloride itself was the first one in China, and Amlodipine besylate was the fourth one.
The company has nearly 10 consistent evaluation products, and the over-evaluated varieties are diversified, so that it can consistently evaluate the leading position of the first echelon.
In addition, there is also an estimate of the consistency of cefuroxime ester, and the progress is also in the forefront of the industry.
In 2018, the company’s rosuvastatin won the bid for exclusive procurement of medical institutions in Shanghai, with good growth.
In December 2018, the company’s three major varieties of rosuvastatin, levetiracetam, and amlodipine were awarded the exclusive bids in the centralized procurement of pilot projects in 4 + 7 cities, with a decrease of 20% -50%.Exchange price and volume, gaining about 30% of the national market in the 4 + 7 region, bringing new profit growth points for the company.
The four initial research companies that have adopted these four varieties currently occupy the market size, and the domestic product market is scattered.
The company’s products are the first to pass the consistency assessment and the product competitiveness is improved. It is expected to gradually increase market share and improve company performance through import substitution opportunities.
Abundant mental and neurological products and improved overall competitiveness In 2018, the company’s R & D expansion totaled 2.
420,000 yuan, an increase of 47 in ten years.
30%, the new product pipeline layout around the company’s strategy.
The company focuses on the field of psychoneuropathy. Kavalatin and Praxox were approved in June and August 2018, respectively. It is the first domestic first-line drug approved for the treatment of mild to moderate Alzheimer’s dementia.And the first batch of domestically approved drugs for treating Parkinson’s disease has enriched the company’s categories in the field of psychology and nerves.
The follow-up product reserves are abundant, and the Phase II clinical trial of EVT201, a new class 1 chemical drug, has been completed. A number of innovative products have entered the clinical stage, and a number of overseas projects have achieved staged progress. The company has nearly 10 consistency evaluation products and 20Generic drug project, 10 improved innovative drug / device projects, 4 innovative drug / device projects.
The market in the field of mental nerves is mainly occupied by products of foreign companies, the market competition is good, and import substitution opportunities break through.
In the future, the product structure will be continuously improved, and the company’s comprehensive competitiveness will be continuously improved. The investment suggestion company is the leading company in the consistency evaluation. Four products have passed the consistency evaluation, and the industry has obvious leading advantages. It is in a favorable position in the country’s centralized procurement, and the import substitution advantage is significant, which will accelerate the growth of the finished drug business.
The company’s performance has shown a quarter-to-quarter high growth trend, and its product reserves are abundant in the field of mental nerves, with huge market potential.
We predict that the company’s EPS for 2019-2021 will be 0.
At 33 yuan, the corresponding price-earnings ratio is divided into 14X, 11X, and 8X, maintaining the “highly recommended” level.
Risks prompt the risk of price reduction in bidding, the risk of failure in research and development, and the risk of rising costs.