Fosun Pharma (600196): Steady Revenue Growth Expenses Drag Down Profit Growth

Fosun Pharma (600196): Steady Revenue Growth Expenses Drag Down Profit Growth

On the evening of April 29th, the company released its first quarter report, realizing revenue, net profit attributable to mothers, and net profit attributable to mothers after deductions were 67.

3 billion, 7.

1.2 billion, 5.

290,000 yuan, rankings increased by 17.
.

67%, 0.

92% and 0.

53%, achieving an EPS of 0.

28 yuan / share.

A brief comment on the revenue growth is large and steady, the increase in expenses drags down the profit-side growth. The company ‘s revenue growth is relatively stable, and Fosun Pharma ‘s revenue in the first quarter increased by 17.

67%, basically maintaining stable growth compared with the same period last year.

From the perspective of profit, the company’s net profit attributable to mothers and net profit attributable to non-mothers are basically the same as the same period of last year, mainly because the increase in expenses during the period has affected the profit growth.

The company’s gross profit margin increased by 1 compared with the same period last year.

There are 53 single ones, and it is expected that some of them will still be affected by the high opening of the two-vote system. In addition, the company’s operating cash flow has improved, a decrease of 12 compared with the same period last year.

40%.

The company achieved investment income of 3 in the first quarter.

280,000 yuan, ranking up 32 in the same period last year.

56%, of which the return of joint ventures is 3.

02 ppm, an increase of 23 in ten years.

42%.

The shareholding of Sinopharm Holdings’ net profit attributable to its mother increased by 28 in the first quarter.

42%, controversial contribution to the company’s performance.

In terms of expenses, the company sold in the first quarter (22.

6.2 billion, +25.

90%), management (5.

43 billion, +25.

35%), R & D (3.

9.4 billion, +41.

85%), finance (2.

58 billion, +29.

58%) expense ratios are 33.

61%, 8.

07%, 5.

85% and 3.

84%, an increase of 2 compared with the same period last year.

20, 0.

49, 1.

00, 0.
35 single, period expenses as a whole increased by 27 compared to the same period last year.
72%, which has an impact on profit growth. It is expected that some of them will have an impact on the adjustment of the sales model after the two-vote system. In addition, the relative increase in the company’s research and development costs will be mainly due to the continued investment in research and development of biosimilars and innovative drugsIncreased impact.

The research and development supplementation is sufficient, and the follow-up pipeline continues to promote the company’s research and development expenses compared to the same period last year, an increase of 41.

85%, accounting for 5 of the total income.

85%.

The company’s main R & D plan is in the drug research and development sector.

Many of the company’s biosimilar drugs are in the phase III research and development phase, and the research and development expansion is subsequently carried out. At the same time, the research and development progress of innovative biological drugs and small molecule new drugs continues to advance at the same time, and there are also some alternatives for consistency evaluation.

Overall, we believe Fosun’s current R & D expansion has positive significance for the subsequent transformation and development.

At present, the company’s R & D investment has gradually entered the harvest stage. The approval of the first biosimilar drug rituximab by its holding subsidiary Fuhong Hanlin is of great significance to Fosun.

We predict that its market size for non-Hodgkin’s lymphoma indications is expected to reach 2 billion.

If follow-up rheumatoid arthritis indications are approved, it will further expand its market size, and gradually improve.

On subsequent pipelines, Fuhong Hanlin’s Xiumele and Herceptin similar drugs have been reported, and Avastin similar drugs are in phase III trials.

In addition, Honghanlin has multiple innovative monoclonal antibodies in the clinical development stage, covering targets such as CD20, VEGF, VEGFR2, EGFR, PD1 / PD-L1, etc. If the research and development progresses smoothly in the future, it will bring rich profits for the company.
In terms of small molecule new drugs, fracitinib, FNC-411, PA-824, FN-1501, FCN-437, etc. are all in the clinical stage, and at the same time, they are actively promoting overseas R & D progress.

The clinical trials of Fosun Kate’s FKC876 in relapsed refractory large B-cell lymphoma continue to lead the country.

The company’s subsequent pipeline reserves are abundant, and it is expected that a wide range of combined drug strategies will be established among subsequent biosimilar drugs, monoclonal antibodies, and small molecule new drugs to promote benefits while enhancing market competitiveness and increasing revenue sources.

The medical industry has a wide coverage and excellent international heritage. It has global development potential. Fosun Pharma’s main business covers three major sectors: pharmaceuticals, equipment and services. At the same time, it has a stake 武汉夜网论坛 in Sinopharm Holdings, and its internal business has strong mutual coordination capabilities.

As the main body of Fosun Group’s healthy ecology, the company’s participation and development strategy are incorporated into the international heritage.

The company’s current generic drug segment is under pressure, but it is actively promoting research and development to transform it into innovative drugs.

Fosun Pharma has established Fuhong Hanlin (biological medicine), Fosun Kate (cell therapy), Intuitive Fosun (surgical robot), Fosun Hongchuang (first-class innovative medicine), and Fosun Pharmaceutical (small molecule innovative medicine).), Xingtai (R & D of new preparations), etc. as the main body, with a clear division of labor.

With strong platform advantages and innovation advantages, we expect the company’s future 深圳桑拿网 target business to continue to improve with the coordinated development and has the potential to become an international pharmaceutical company.

Earnings forecast and investment rating We expect Fosun Pharma to realize net profit attributable to mothers in 2019-202131.

6, 37.

0, 44.

1 ppm with a growth rate of 16 each.

6%, 17.

3%, 19.

0%, corresponding to the current sustainable PE of 23, 20, 17 times, maintaining the “Buy” rating.

Risk warnings ① The progress of new drug research and development is less than expected; ② The company’s merger and acquisition expansion is less than expected; ③ intense competition in the variety industry for sale, which leads to improved performance