Stellite (603520) quarterly report comments: 2019Q3 results are eye-catching and production capacity is released to further open up growth space

Stellite (603520) quarterly report comments: 2019Q3 results are eye-catching and production capacity is released to further open up growth space

Key points of investment: The company announced the third quarter report of 2019 and realized revenue9.

8.6 billion, an annual increase of 55.

43%; net profit attributable to mothers1.

3.7 billion, an annual increase of 62.

08%; net profit after deduction of non-return to mother 1.

3.4 billion, an annual increase of 59.

01%; EPS is 0.

82 yuan.

The company’s performance was in line with expectations.

One quarter of 2019Q3 achieved revenue3.

5 billion US dollars, an annual increase of 69.

74%; net profit attributable to mothers was 44.31 million yuan, a year-on-year increase of 123.

58%; net profit after deducting non-return to mother is 43.44 million yuan, an annual increase of 107.


Ping An’s point of view: The performance of each quarter gradually slowed down, and the financial expenses in the second half of the year increased significantly: the company’s revenue in the first three quarters of 20199.

8.7 billion (+55.

43%), net profit attributable to mother 1.

3.7 billion (+62.

08%), in line with previous expectations.

Among them, Q3 achieved revenue 3 in a single quarter.

5 billion (+69.

74%), and realized net profit of RMB 44.31 million (+123).

58%), showing dazzling performance.

In line with the company’s change in the first three quarters of 2018, we believe that the extension will be affected by Poseidon’s consolidation and gradually expand the scale of downstream customers’ purchases. The company’s orders in each quarter will be more even.

The financial expenses of the company in Q3 2019 were 38.53 million. Compared with the previous quarter, Q2 increased significantly, mainly due to the increase in the company’s subsidiary index.

The current company’s asset-liability ratio is around 70%, and it is expected to gradually decline in the future.

The concentrated release of production capacity has further opened up the growth space and benefited from the import substitution of downstream preparations: the current major varieties of iohexol, iopanol, and iodixanol have a capacity of 650 tons, 250 tons and 200 tons respectively.The production capacity of sea alcohol and iopalol respectively reached 1,330 tons and 505 tons. In the future, iodixanol plans to increase the production capacity by 200 tons. The concentrated release of production capacity will support the company’s continuous volume increase.

At present, the original sales of iohexol, iopalol, iodixanol, iomeprol, and ipromide account for 39%, 96%, 28%, 100%, and 100%, respectively. As the absolute leader in the field of internal contrast agent APIThe company will greatly benefit from the import substitution of downstream preparations.

Iohexol preparations are about to be approved, and the overall layout of the contrast agent industry chain continues to advance: the company has formed the entire industry chain layout of “intermediates + APIs + preparations”.

In terms of intermediates, the company recently announced a convertible debt plan, part of which was used for an annual output of 1,500 tons of iodide projects, and the layout of intermediates was further improved.

As for the contrast agent bulk drug, iomeprol, ioversol, and iodopromine have entered the registration or pre-declaration stage. For the contrast agent, gadopentetate glucosamine, gadomonide glucosamine, and disodium acetamate have entered a small testOr pilot stage.

In terms of preparations, iohexol, iopanol, iodixanol, and ioversol have been submitted for registration, of which iohexol has been submitted for replenishment and is expected to be approved in 2019.Variety of iodine contrast agents.

Iopaxol and iodixanol are being supplemented and are expected to be approved in 2020.

As the base of preparation transformation, the Shanghai preparation factory is expected to exceed 50 million in 2019, and will start to reduce losses in 2020.

Profit forecast and investment rating: The company’s current industry chain model of “Jiangxi Pharmaceutical Intermediate + Zhejiang Pharmaceutical Raw Drugs + Shanghai Preparations” has gradually matured, with rich contrast agent categories and obvious competitive advantages. The preparation varieties will be available soon, and the acquisition of Poseidon Preparations will be further enhancedThe right to speak.

We maintain the company’s EPS for 2019-2021 to be 0.

97 yuan, 1.

45 yuan and 1.83 yuan forecast, the current sustainable corresponding to 2019 PE is 43 times, maintaining 天津夜网 the “recommended” level.

Risk reminders: 1) Research risk: Due to the uncertainty of new drug research and development, there is a risk that the approval time is less than expected; 2) Product price reduction risk: Affected by industry policies and competition pressure, the company’s product price may fall; 3)Environmental protection risk: At present, the company’s main business is the production of contrast agent APIs, which have high environmental protection requirements and there are certain environmental protection risks.