East China Pharmaceuticals (000963) 2019 First Quarterly Report Review: Performance Exceeds Expectations Both Segments Accelerate

East China Pharmaceuticals (000963) 2019 First Quarterly Report Review: Performance Exceeds Expectations Both Speeds

Event: The company released the first quarter report of 2019, and achieved revenue of 97 in 19Q1.

100 million, net profit attributable to mother 9.

7.0 billion, net of non-net profit 8.

5.6 billion, at least +23.

84% / 37.

63% / 30.

45%; EPS is 0.

62 yuan, exceeding market expectations.

Opinion: The two major sectors of 19Q1 both accelerated.

18Q1 to 19Q1 single-quarter revenues exceeded + 10%, 8%, 7%, 17%, and 24%, respectively. The increase in revenue was due to the increase in industrial and commercial revenue growth.

The reason why the profit growth rate is higher than the income is because the R & D deducts the 天津夜网 new regulations and other factors.

Industry: The growth rate of the main varieties has picked up, and the second-line varieties have increased in volume.

China-US East China 19Q1 revenue was 33.

2 billion, an annual growth of 35.

91%, exceeding expectations, and estimated profit growth is slightly higher than income.

Among them, the revenue of Bailing capsules increased by about 15%; the revenue of acarbose increased by about 35%; the overall revenue of immunosuppressants increased by about 30%; the revenue of pantoprazole increased by about 20%; the other second- and third-line varieties continued to increase,Among them, pioglitazone dimethylbisbutyrate revenue was close to 100 million, xylindole indicated revenue was 20-30 million, and daptomycin revenue increased 60-70%.

Business: 19Q1 growth continued to pick up.

Due to the impact of the two-vote system, commercial revenues increased by 5 in 18 years.

5%, 19Q1 rebounded significantly to 18.

42%, realized income 64.

30,000 yuan.

The significant increase was due to the decrease of the base in 18Q1, the consolidation of medical beauty companies, and the increase in the high-margin agency model. It is expected that commercial revenue will increase by more than 10% in 19 years.

High R & D funding and continued innovation + internationalization.

The company’s research and development expenses increased by 70% to 1 in 19Q1.

57 billion.

It is expected that 1-2 overseas introduced species will land every year.

Mevatinib is undergoing Phase 3 clinical trials in advance of 19H2; transplanted DPP-4 has completed Phase 1 clinical trials, and oral GLP-1 is about to begin Phase 1 clinical trials; liraglutide is currently undergoing Phase 3 clinical trials; detemir is undergoing Phase 1 clinical trials.

The company actively promotes the internationalization of its products. Pantoprazole has been temporarily approved by the FDA. Acarbose, simvastatin, omeprazole, tacrolimus, and daptomycin are also in the process of certification.

As a high-quality white horse, profit forecasting and investment rating companies have experienced steady and rapid growth in their main breeds, are rich in research, and have broad prospects for long-term development.

We maintain our EPS forecast for 19-21 to 1.



71 yuan per year, + 22% / 18% / 21%, currently expected to correspond to 18 times PE in 19 years, maintaining the “overweight” rating.

Risk warning: the growth rate of core varieties exceeds expectations; 武汉桑拿 the progress of research and development exceeds expectations.