Xinhua Pharmaceutical (000756): Consistent evaluation of performance in line with expectations

Xinhua Pharmaceutical (000756): Consistent evaluation of performance in line with expectations

Event: The company released the semi-annual report for 2019: the company realized revenue of 3.1 billion US dollars in the first half of 2019, which increased by 15.

34%; net profit attributable to mother is 1.

47 trillion US dollars, an annual increase of 19.

54%; EPSEPS is 0.

24 yuan.

Key points of investment: The strategic varieties continue to grow rapidly, and performance is in line with before.

The company’s performance is in line with our expectations.

Revenue for the second quarter of 201914.

8.2 billion, an annual increase of 16.

67%, compared to Q1 (14.


In terms of H1 sub-categories in 2019, API revenue was 13.

USD 9.2 北京桑拿 billion, an annual increase of 18.

62%; income from formulation products 14.

4.0 billion, an annual increase of 22.

40%, of which the top ten strategic diversified sales revenues in 2019 will increase by 33 each year.

6%, of which rabeprazole sodium sales revenue increased by 22 per year.

At 07%, the sales of Glimepiride increased by 27 per year.


The gross profit margin of H1 companies in 2019 will continue to remain high, increasing by 3 per year.

53 perfect to 31.

39%, a slight decrease from Q1.

For the period expense ratio, H1 in 2019 was 24.

18%, an increase of 3 per year.

53, mainly because the market development fee increases by 71 every year.

71% and R & D expenses increased by 53 in ten years.


The modern medical center is progressing smoothly, and the consistency evaluation has entered 杭州桑拿网 the harvest period.

Modern Medicine International Cooperation Center (Phase I) successfully passed domestic GMP certification and British MHRA audit, obtained qualification to enter the EU high-end market, and continued to advance the company’s internationalization strategy.

In terms of consistency evaluation, Glimepiride passed the consistency evaluation in May 2019, which kicked off. In August, cetirizine chloride became the first domestic company to pass. In addition, 9 product application materials have been submitted to the national drug reviewThe Center is waiting for approval, marking the beginning of the harvest period of the company’s consistency evaluation.

Maintain the “Recommended” level.

We maintain our previous forecast and conservatively expect the company’s EPS for 2019-2021 to be 0.

46 yuan, 0.

52 yuan and 0.

60 yuan, estimated to be 15 times, 13 times and 11 times respectively. Considering the stable growth of the company’s performance, the internationalization strategy has further opened up the space and maintained the “recommended” level.

Risks suggest that the downturn of APIs; market sales fall short of expectations; expense growth is faster than expected.