Pien Tze Huang (600436) One-core two wings development momentum good performance in line with expectations

Investment Highlights: The company’s performance is in line with expectations.

The company achieved operating income of 47 in 2018.

66 ppm, an increase of 28 in ten years.

33%; Net profit attributable to shareholders of listed companies11.

43 ppm, an increase of 41 in ten years.

62%; net profit attributable to shareholders of the listed company after deduction 11.

2.4 billion, an increase of 44 per year.

97%, corresponding to EPS 1.

89 yuan.

Reported results, the company’s performance maintained a high growth rate, in line with expectations.

The Pien Tze Huang series has maintained good growth, and the price increase is expected to be strong.

Report communique, the company’s pharmaceutical industry segment achieved revenue18.

8 billion (+28.

45%), of which the Pien Tze Huang series achieved revenue of 17.

9.6 billion (+32.

07%), with a gross profit margin of 83.

02%, a decline of 3 per year.

45pp, a significant decrease, considering the scarcity of the company’s products, it is expected that the company will raise prices again in 19 years.

In the report summary, the company’s pharmaceutical business segment achieved revenue23.

5.4 billion (+23.

82%), of which Xiamen Hongren earned 21.

10,000 yuan, profit 10.75 million yuan, failed to meet performance commitments, resulting in impairment of goodwill of 35.48 million yuan, goodwill only 6.1 million yuan after impairment, risk controllable, the company’s pharmaceutical business sector is expected to maintain stable growth in the future.

The daily chemical series has a good development momentum.

Reports on statutory daily necessities, and the cosmetics segment achieves revenue4.

9.8 billion (+56.

71%), maintaining rapid growth.

Among them, the operating income of the main cosmetics subsidiary was 2.

74 million, achieving a net profit of 4246 million; operating income of the main toothpaste and daily necessities subsidiary was 1.

220,000 yuan, a net profit of -39.7 million yuan.

With the improvement of the company’s brand in the field of daily chemicals and the development of channels, the company’s profitability of daily chemical business has continued to improve.

Gross profit margin decreased slightly, and expenses were well controlled during the period.

Reporting the average, the company’s gross sales margin was 42.

42%, a decrease of 0 every year.

84pp, mainly due to the decline in gross profit margin of the pharmaceutical industry sector.

According to the report budget, the company’s four expenses are well controlled, and the sales expenses are 8.

23%, a decline of 2 per year.

64pp, mainly due to the company’s reduction in promotional and advertising expenses; management expenses 5.

05%, 0 per year.38pp; Finance Expenses cost-0.

21%, a decline of 0 per year.

10pp; R & D expenses 2.

12%, rising by 0 every year.

23pp.

Reporting the average, the company’s net sales margin was 23.

68%, an annual increase of 2.

67pp; ROE is also up from 19 last year.

51% increased to 22.

78%, profitability has steadily improved.

Profit forecast: We predict that the company’s net profit attributable to the parent company will be 14 in 2019-2021.

7 billion, 18.

6.6 billion, 23.

39 trillion, corresponding to 2 EPS.

44 yuan, 3.

09 yuan, 3.

88 yuan, the current sustainable corresponding PE is 48.

6/38.

3/30.

6 times, maintaining the 北京夜网 “recommended” level.

Risk warning: the risk of rising raw material prices; the risk of major product sales not meeting expectations; the risk of new product market expansion falling short of expectations.