Puluo Pharmaceutical (000739) 2019 Interim Report Review: Profits Exceed Expectedly, Business Structure Gradually Optimized

Puluo Pharmaceutical (000739) 2019 Interim Report Review: Profits Exceed Expectedly, Business Structure Gradually Optimized

Investment Highlights: Event: The company released its 2019 Interim Report and achieved revenue of 35 in the first half of the year.

4.9 billion yuan, an increase of 15.

58%; net profit attributable to mother 2.

8.1 billion yuan, an increase of 50.

61%; deducted non-net profit 2

9.2 billion yuan, an increase of 83.

99%.

Profit-side growth was slightly faster than expected.

The growth rate of non-net profit in the second quarter increased significantly every quarter.

Revenue growth in the second quarter was 15.

34%, basically the same as the first quarter, but the performance of the profit side is more dazzling, non-net profit deducted in the single quarter is 1.

8.3 billion, an increase of 93.

21%, an increase of 61pct over the same period last year, and an increase of 23pct from the first quarter.

The reason for the increase in profit growth is the increase in gross profit margin and the decrease in management expense ratio.

Profitability has increased significantly, and the ability to collect funds has increased.

In terms of profitability indicators, the company’s gross profit margin and net profit margin were 32 in the first half of the year.

12% and 7.

91%, up 2 every year.

26 points and 1.

84pct; ROE and ROA increased by 2.

18 points and 1.

50pct.

The above indicators have reached the highest levels in the past five years.

In terms of period expenses, the company’s sales expense ratio increased slightly in the first half of the year.

44 points, mainly due to product promotion requirements, and the administrative expense ratio decreased by 1.

17pct, management efficiency is increasing year by year.

In terms of turnover indicators, the company’s inventory turnover rate fell by 0 every year in the first half of the year.

27pct, basically the same as last year; the receivables turnover rate rose by 0.

49pct, the ability to collect money has returned to a higher level in history.

The improvement of bulk drug intermediates increased the gross profit of overseas business and the improvement of the preparation business structure.

The revenue of the API intermediates segment increased by 18 per year.

42%, gross margin increased by 2.

55pct, mainly because the gross profit margin of overseas business increased sharply13.

81pct to 23.

88%. In the future, environmental protection factors will further shrink and concentrate the industry’s supply chain, which will help the company to consolidate its market leadership position.

Preparation business income increased by 0.

26%, but gross margin rose by 5 in ten years.

At 89pct, the company eliminated some low-margin varieties. In addition, high-margin products also maintained rapid growth. Ubenimex increased by about 10% in the first half of the year. The focus shifted from management to innovation, and research and development progressed smoothly.

After the integration of the past year and a half, the company’s personnel management efficiency has been improved, and it will continue to focus on innovation in the future.

The company has submitted a total of 7 registration applications to NMPA, and has submitted DMF registrations in 9 countries and more than one product. There is also an extended-release film project submitted to the US FDA for ANDA registration, which is currently being evaluated.

Consensus assessment research has 16 projects, of which 2 have been declared for 成都桑拿网 diversity.

Phase II clinical trials of a new class of drugs, sofadil, for the treatment of stroke have been completed, and statistics on phase II clinical data have been completed.

Investment advice: The company’s EPS for 2019-2021 is expected to be 0.

44, 0.

56 and 0.

69 yuan, the current expected corresponding estimate is 24.

99, 19.

45 and 15.

84 times.

We are optimistic about the continuous improvement of the company’s existing business structure and the performance flexibility brought by subsequent R & D pipelines, and give it a “recommended” rating.

Risk reminders: API price risk; R & D failure risk; Foreign trade risk.