Kanghong Pharmaceutical (002773): Long Mu’s revenue increased by 42.

Home / Kanghong Pharmaceutical (002773): Long Mu’s revenue increased by 42.

79% to 8.

82 ppm net margin increased to 23%

Kanghong Pharmaceutical (002773): Long Mu’s revenue increased by 42.

79% to 8.

82 ppm net margin increased to 23%

Event: On April 28, 2019, the company released its 2018 annual report.

In 2018, the company achieved operating income of 29.

17 ppm, a ten-year increase4.

70%; net profit attributable to mother 6.

95 ppm, a ten-year increase of 7.

88%; deduct non-net profit 6.

29 ppm, an increase of 0 in ten years.

35%.

A cash dividend of 2 is to be distributed for every 10 shares.

80 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 3 shares.

Opinion: Long Mu earns 8.

82 ppm, an increase of 42.

79%, net profit margin increased to 23%.

Biological products (Lang Mu), proprietary Chinese medicines and chemical drugs are the company’s three main businesses. In 2018, the revenue and gross profit of the biological products segment increased to about 30%.

In terms of quarters, in the fourth quarter a single quarter achieved operating income7.

35 ppm, an increase of 6 per year.

98%, net profit attributable to mother 1.

88 ppm, with a ten-year average of 17.

52%.

With the first three quarters of revenue growth 3.

95%, net profit attributable to mothers increased by 21.

It is rated at 84%, and the budget revenue growth rate is basically stable with a slight increase of 0.

8 units, but the profit growth rate narrowed, down 14 units.

Net operating cash flow 3.

51 ppm, with a ten-year average of 54.

24%, the first is that in 2017, the subsidiary Kang Hong Pharmaceutical received compensation for relocation4.

54 ppm caused the current net operating cash flow to reach 7.
.

6.8 billion yuan.

Long Mu’s 2018 revenue 8.

820,000 yuan, an increase of 42 in ten years.

79%; gross profit 8.

30 ppm, a 51-year increase of 51.

97%.
Gross margin 94.
70%, an increase of 5 per year.

The 72 averages are mainly due to the scale effect of biopharmaceuticals.

In the past, due to the rapid promotion period of Langmu, higher selling expenses, and higher expansion of Kanghong Biological Research, the net profit margin of products was far lower than the average level of the biological products industry.

The layout of sales channels was completed in 2018, and the scale of revenue increased, and Langmu’s net interest rate increased by 23%.

Chinese patent medicines are initially obvious, and chemical medicines are basically flat, and it is expected to gradually recover in the future.

The company’s proprietary Chinese medicines had revenue in 2018 of 8.

63 ppm, with a ten-year average of 20.

4%; gross margin is 85.

79%, zero for ten years.

87 units.

The company’s chemical medicine revenue in 2018 was 11.

70 ppm, a ten-year increase of 8.

02%; gross margin 95.

07%, increasing by 0 every year.

22 units.

The company’s overall gross profit margin steadily rose to 92 in 2018.

17%, mainly due to the gradual increase in the proportion of biological products (Lang Mu).

Selling expenses 13.

7.5 billion (7.

72% +), with a sales expense ratio of 47.

15%.

Management expenses 3.

8.6 billion (23.

59% +), the expense ratio is 13.

23%, R & D expenses 2.

3 billion (20.

02% +), expense ratio 7.

90%, the total cost rate level reached 21%, beyond the increase of 3 alternatives.

Financial expense ratio -1.

58%.

The company announced that the issue of convertible bonds does not exceed RMB 16.

30 ppm, after deducting the issuance cost, all supplementary KH series bio-new drug industrialization construction 上海夜网论坛 projects, Compaqop eye ophthalmic injection international phase III clinical trials and registered listing projects will be carried out in order of priority.

Profit forecast and investment advice: We expect the company’s operating income for 2019-2021 to be 35.

2.8 billion, 42.

4.7 billion and 51.

70 ppm, an increase of 20 in ten years.

94%, 20.

35%, 21.

74%; net profit attributable to mothers is 9, respectively.
04 billion, 12.
18 ppm and 15.

80 ppm, an increase of 30 in ten years.

04%, 34.

76% and 29.

75%, corresponding EPS is 1.

34, 1.

81, 2.

35.
Considering that Lang Mu has entered the rapid volume of medical insurance, the US clinical phase III trial was officially launched in 2018 to maintain the “overweight” level.

Risk reminder: the risk that Compaq’s promotion fails to meet expectations; the risk of failure of overseas clinical trials; the risk of drug price reduction.

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