Yiling Pharmaceutical (002603) 2018 Annual Report and 2019 First Quarterly Report 武汉夜网论坛 Comments: Results Meet Expectations Cardiovascular and Cerebrovascular Drugs Expected to Recover in the Second and Third Quarters

Event: The company released its 2018 annual report and 2019 first quarter report, and achieved revenue of 48 in 2018.

1.5 billion yuan, an increase of 17.

97%; net profit attributable to mother 5.

9.9 billion yuan, an increase of 10.

82%; deduct non-net profit 5.

6.9 billion yuan, an increase of 11.


Revenue in the first quarter of 2019 was 15.

5 billion yuan, down by 1.

94%, net profit attributable to mother 2.

8.8 billion yuan, a decrease of 7.

18%, attributable to non-net profit2.

7.9 billion, a decrease of 9.


Performance was basically in line with expectations.

In 2018, the rapid growth of Lianhua Qingwen was driven by the influenza, and the impact of cardio-cerebral-vascular drug targeting cargo accelerated.

The growth rate of revenue and non-net profit in 2018 increased by more than 11 respectively.

13pct and 16.

04pct, but the fourth quarter revenue and non-net profit deductions are both reduced by 3.

25% and 51.

27%, mainly related to the company’s preparation for some products to raise prices and control delivery.

Stimulated by influenza factors, anti-cold drugs based on Lianhua Qingwen achieved revenue12.

0.5 billion, a year-on-year increase of 84.

98%, H2 continued to maintain a high growth rate of more than 80% of H1; cardio-cerebrovascular drugs gradually increased by only 1.

1%, mainly due to the company’s increase in regional supply prices and control of shipments.

Lianhua Qingwen continued to grow rapidly. Control of goods in mid-March led to slight fluctuations in the first quarter.

The sales of Lianhua Qingwen were still strong in the first quarter, and achieved a 10% growth under a high base last year. After high growth in 2018, the popularity and market coverage of Lianhua Qingwen were significantly improved.

Due to the increase in demand for Lianhua Qingwen, the company carried out proactive cargo control for other products in the first quarter to ensure production capacity and delivery. It is expected to resume in the second and third quarters of this year.

Terminal management improved, and R & D continued to increase.

The company’s gross profit margin decreased by 1 in the first quarter of 2019.

47pct to 64.

90% is expected to be related to the increase in the proportion of non-Chinese medicine business.

The sales expense ratio decreased significantly in the first quarter.

11pct to 32.

17%, the company continued to optimize the organizational structure and personnel adjustments, classification, and terminal management; changes, the company around the secondary development of listed products and traditional Chinese medicine innovative drugs increase research and development investment, quarterly research and development expenses of 65.49 million yuan, an increase of 48.


Chemicals promoted multi-business expansion.

The chemical medicine sector has three businesses: contract processing, clinical sample processing, and own ANDA. The company has 杭州桑拿 gradually applied for 9 US ANDA products, of which 5 were approved, and 1 ANDA was purchased.The company made reasonable use of the consistency assessment policy announcement, and the gradual enrichment of the chemical pipeline will bring incremental space for the company’s performance.

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

62, 0.

73 and 0.

86 yuan, the current expected corresponding estimate is 19.

83, 16.

83 and 14.

32 times.

We are optimistic about the sustained and rapid growth of Lianhua Qingwen and the resumption of sales of cardio-cerebral vascular drugs, maintaining the “recommended” level.

Risk warning: the risk of drug price reduction, the growth rate of large varieties slows down the risk, and the R & D is less than expected.