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East China Pharmaceuticals (000963) Quarterly Report Review: First Quarterly Report Releases Net Profit Increased 38%

Core point of view: operating income in the first quarter of 19 increased by 23.

84%, net profit attributable to mothers grows 37.

In the first quarter, 63% of the company’s operating income was attributed to the net profit of the mother, and 杭州桑拿 after deduction, the net profit of the mother was 97.

0.5 billion, 9.

07 billion, 8.

5.6 billion, an increase of 23 each year.

84%, 37.

63%, 30.


In the fourth quarter of 18, the company realized operating income, net profit attributable to mothers, net profit attributable to mothers 74.

5.9 billion, 4.

5.8 billion, 4.

520,000 yuan, an increase of 16 each year.

89%, 57.

79%, 73.


It is expected that the business of the core industry in the United States and East China will continue to grow. The core of the pharmaceutical industry will be the subsidiary in the United States and East China. In 2018, revenue and profit will increase by 24.

13%, 39.

The growth rate has accelerated at 24%, and we expect the growth trend to remain in the first quarter of 2019.

The core product Bailing Capsule 青岛夜网 has increased the promotion of the grassroots and OTC markets, and the grassroots share is still low.

Acarbose benefited from a higher proportion of reimbursement for medical insurance. The company integrated raw materials and sales advantages, and passed the consistency evaluation for the first time. The competitive pattern advantage is expected to be maintained.

The immunosuppressive line mainly includes cyclosporine, tacrolimus and morphomycodyl esters. The new version of the medical insurance indications has released restrictions to varying degrees and is still growing steadily.

The impact of commercial transfers has been eliminated. The acquisition of British Sinclair to enrich the medical and beauty business. The two-vote system of pharmaceuticals and commercials has gradually eliminated the impact on the transfer business.

The company’s acquisition of British medical beauty company Sinclair in 2018 was completed to effectively complement the existing medical beauty business. The commercial part of the first quarter was affected by Sinclair’s consolidation factors.

The products under development are steadily advancing the company’s rich variety in research. The annual report shows that as of the end of 2018, Mehuatinib is conducting first-line phase II clinical trials in 72 cases, and the enrollment has been completed. The DPP-4 inhibitor HD118 has completed phase I of healthy hardeningIn clinical trials, prototype test modeling was also performed; the oral GLP-1 innovative drug TTP-273 was declared clinical at the end of 2018.

The EPS is expected to be 1 in 19-21.



The RMB 89 / share company’s endogenous products maintained steady growth, and the product pipeline under development gradually became rich.

We expect the company’s EPS to be 1 in 19-21.

95 yuan / 2.

39 yuan / 2.

89 yuan, corresponding PE is 17/14/12 times.

The company’s innovation and internationalization business is worth looking forward to, giving the industry average PE21X in 2019, corresponding to a valuation of 40.

90 yuan / share, maintain “Buy” rating.

Risk reminder: core product medical insurance control fee; product under development is less than expected