Yiling Pharmaceutical (002603): Lianhua Qingwen Drives Growth, Overseas Business Advances Smoothly

Yiling Pharmaceutical (002603): Lianhua Qingwen Drives Growth, Overseas Business Advances Smoothly

Event: The company published 18 and 19 quarter 无锡桑拿网 reports.

18 years of income, net profit attributable to mothers and net profit attributable to non-mothers were 48.

15 billion, 5.

9.9 billion and 5.

6.9 billion, each year +17.

97%, +10.

82% and +11.

94%, the profit distribution plan is 1 yuan for every 10 shares.

In the first quarter of 19th, the increase rate of net profit attributable to mothers and net profit without deductions to mothers was -1.

94%, -7.

18% and -9.


The opinions are as follows: 18Q4 performance changes, and look forward to subsequent improvements.

In 18Q4 revenue, the growth rates of net profit attributable to mothers and net profit after deducting non-attributions were -3 respectively.

25%, -59.

03% and -51.


The increase in profit is greater than the income mainly because most of the R & D expenses were 杭州夜网论坛 confirmed in 18Q4 (1.

3.6 billion, ten years 3.

1.6 billion) and non-operating expenses (12.53 million yuan).

We estimate that the main reasons for the decline in revenue are: 1. Decrease in sales due to the decline in Shensong Yangxin Medical Insurance; Q4 is a period of high incidence of cardiovascular disease, which is a peak sales season; 2. Price adjustment and control of some products.

19Q1 continued to grow under the high base of Qinghua Plague.

In 19Q1, the company’s revenue, net profit attributable to non-mother and deducted non-attributable, and growth rate were -1.

94%, -7.

18% and -9.


We estimate that Lianhua Qingwen has a revenue of ten years + 10% under a high base of 18Q1. However, in order to ensure the supply of Lianhua Qingwen in the peak season, the company tilted downstream resources, affected the shipment of other products, and led to a decrease in overall sales revenue.In addition, factors affecting performance in 18Q4 still exist.

From the perspective of primary products in 18 years: the revenue of cardiovascular products 28.

4.0 billion, previously +1.

10%, mainly due to a slight decline in Shensong Yangxin’s income.

We estimate that the income of Tongxinluo Capsules is growing steadily every year, and the income of scattered Qiangqiangxin Capsules is increasing rapidly.

Income from cold products12.

04 billion, +84 in ten years.

98% is basically the contribution of Lianhua Qingwen.

Other types of income 7.

740,000 yuan, ten years +22.


Food and beverage income is 29.92 million yuan, +16 per year.75%.

Overseas business progressed smoothly.

The company has now completed 9 ANDA declarations, of which 5 varieties have been approved by the US FDA, including the company’s independently developed technology barrier antihypertensive drug felodipine sustained-release tablets, antineoplastic drugs anastrozole and letrozole tablets, Classic antibiotic ciprofloxacin tablets, classic antiviral drug acyclovir tablets.

In addition, the company also acquired anti-anxiety drug buspirone tablets anda approval, further enriching the product framework.

At present, the company’s newly-built 80,000 square meter international preparation workshop is about to enter the follow-up certification stage, and the international sales network has also been initially completed. It has obtained wholesaler licenses from 50 states in the United States.The sustainable development of the company and its international competitiveness continue to increase and expand its foundation.

Profit forecast: We expect the company’s net profit growth attributable to its mothers to be 19% / 17% / 15% in 19-21, and EPS to be 0.



80 yuan, the current expected corresponding 19pe is estimated to be 21x.

Covered for the first time and given “Careful Recommendation-A Grade”.

As a leading Chinese patent medicine company, the company has rich growth points in the future: 1. The core products continue to enter various guidelines to promote clinical use and spread to OTC and the grassroots through channel sinks; 2. It has been approved to produce and sell Chinese medicine granules in Hebei Province;3. After the approval of ANDA, overseas sales and domestic sales report.

Recently the company’s stock repurchase amount is nearly 100 million US dollars, full of confidence in the future development, the first coverage, given a “prudent recommendation-A rating”.

Risk warning: product sales are not up to expectations; production and operation risks; commercial bribery risks.