Shanghai Pharmaceuticals (601607) 2019 Third Quarterly Report Review: 19Q3 deducted non-attributed net profit performance is beautiful. The industrial sector relies on endogenous + extension to continue its efforts

Shanghai Pharmaceuticals (601607) 2019 Third Quarterly Report Review: 19Q3 deducted non-attributed net profit performance is beautiful. The 厦门夜网 industrial sector relies on “endogenous + extension” to continue its efforts

Company dynamics The company released the third quarter report of 2019.

  Matter comment 19Q3 deducted non-attribution net profit rapid growth The company achieved operating income of 1,406 in the first three quarters of 2019.

17 trillion, an increase of 19 in ten years.

57%; net profit attributable to mother 33.

9.9 billion, an annual increase of 0.

80%; deduct non-net profit of 20.

9.5 billion, an increase of 10 in ten years.

66%.

By quarter, the company achieved operating income of 480 in Q3 2019.

4.2 billion, an annual increase of 15.

14%; net profit attributable to mother 11.

1.3 billion, down 16 each year.

88%, mainly due to the non-recurring income conversion caused by the equity acquisition of Guangdong Tianpu in 18Q3, which caused a high base in the same period of the previous year and other factors; non-net profit was deducted9.

$ 7.5 billion, an increase of 44 per year.

82%.

  The industrial segment continued to grow rapidly. In terms of business cooperation with BIOCAD, the company’s industrial segment maintained a rapid growth trend. The pharmaceutical industry achieved revenue of 176 in the first three quarters of 2019.

8.2 billion, an annual increase of 24.

05%, of which, 60 key varieties achieved 101 income.

5.4 billion, an annual increase of 31.

19%.

The company continues to expand R & D investment, with R & D expenditures reaching 8 in the first three quarters of 2019.

60,000 yuan, an annual increase of 13.

74%.

In September 2019, the company signed a joint venture agreement with BIOCAD to introduce six heavy-duty drugs including adalimumab biosimilars, trastuzumab biosimilars, bevacizumab biosimilars, and PD-1 products.The permanent and exclusive R & D, production, sales, and other commercialization rights of Pound Biopharma in Greater China. The two parties continue to deepen strategic cooperation in the research and development of macromolecule biopharmaceuticals, and gradually enrich the company’s bio-innovative R & D pipeline.

  The company’s pharmaceutical distribution business achieved sales revenue of 1,221 in the first three quarters of 2019.

8.8 billion, an annual increase of 18.

56%.

The company promotes the rapid development of innovative business, and continues to promote the construction of provincial platforms in key provinces while integrating market resources. The vaccine business and device distribution business have grown each year.

33%, over 30%.

  Equity incentives enhance the company’s endogenous growth momentum. In October 2019, the company disclosed the proposed company’s senior management, middle management personnel and core technologies, business backbones and other 211 incentive objects, such as 2,842.

09 million stock budgets, set operating performance indicators in terms of operating income, increase average return on net assets, return to net profit, research and development expenses, comprehensive performance index, etc.It has competitive advantages in other aspects, and closely combines the company’s mid- and long-term development prospects with the interests of core employees to lay a solid foundation for the company’s sustainable development.

  Risks include the expected risks of industry policies such as the two-vote system; the risk that the progress of the consistency evaluation of generic drugs is less than expected; the risk of failure to develop new drugs; the risk of impairment of goodwill.

  Investment recommendation In the next six months, maintain a “cautious increase” rating and expect the company’s EPS to be 1 in 19 and 20 years.

55, 1.

73 yuan, with a closing price of 19 on October 30.

18 yuan calculation, dynamic PE is 12 respectively.

39 times and 11.

09 times.We believe that, as a leading pharmaceutical distribution 夜来香体验网 company, the company has expanded its advantages in scale under the background of the “two-vote system” and a nationwide distribution network layout. It is committed to increasing the proportion of pure-sale business in this round of industry reshuffle and replacing more markets.Share.
In addition, the company’s industrial and commercial synergy has obvious advantages. The industrial sector adheres to the strategy of focusing on the therapeutic field and key products to maintain a rapid growth trend. In the long run, the rich research variety reserve promotes the sustainable development of the industrial sector.

In the next six months, we will maintain a “cautious increase” rating.