Jingxin Pharmaceutical (002020): slightly higher performance, expected new products to continue heavy

Jingxin Pharmaceutical (002020): slightly higher performance, expected new products to continue heavy

Event: The company announced the 2019 semi-annual results report: H1 in 2019 achieved operating income18.

USD 5.9 billion, an annual increase of 31.

92%; net profit attributable to mother is 3.

2.6 billion, an annual increase of 52.

89%, EPS per share is 0.

47 yuan.

The semi-annual results exceeded our previous expectations.

Investment Highlights: Three businesses are growing rapidly, with APIs and devices growing faster than expected.

In terms of business types, the H1 finished drug revenue in 2019 was 10.

USD 8.9 billion, an increase of 32% each year, of which the main product rosuvastatin is collected and implemented, and we expect the revenue to be basically flat (price reduction + volume increase); second-line products Bacillus licheniformis continue to grow rapidly; new products pitavastatin and leftPiracetam benefited from the medical insurance volume and consistency evaluation, respectively, and the revenue growth exceeded our expectations. It is expected that the revenue will reach 3 billion and 1 billion.

For APIs, H1 revenue in 2019 was 5.

US $ 3.6 billion, an annual increase of 33%, slightly exceeding our expectations. We believe that it should be caused by the improvement of the operating level of old products, and also related to the price of statins in the first half of 2019.The price of simvastatin is 1,550 yuan / kg, more than 24% per year.

In terms of medical devices, H1 revenue in 2019苏州夜网论坛 was 2.

19 trillion US dollars, an annual increase of 29%, there is a clear trend of recovery and improvement.

The growth rate of H1 attributable net profit in 2019 is higher than income, which is mainly related to investment income.

In H1, net profit attributable to mothers will increase by 52 per year.

89%, which is significantly higher than the growth rate of income. We believe that it is mainly related to investment income. The net profit growth rate after deduction is about 25%.

In terms of quarters, Q2 2019 achieved revenue9.

US $ 6.6 billion, an annual increase of 26%, and net profit attributable to mothers is 1.

9.5 billion yuan, an annual increase of 56%.

Maintain the “Recommended” level.

Taking into account the improvement in the price of raw materials and the operating conditions, we 南宁桑拿 raise this part of the forecast, and conservatively predict that the EPS for 2019-2021 will be 0.

68 yuan, 0.

82 yuan and 0.

96 yuan, considering the company’s stable growth in performance, coupled with continued high investment in research and development and the development of new products, maintain the “recommended” rating.

Risk warning: the price will fall further; the gross profit margin will exceed expectations; sales will be slower than expected.