Jianyou Co., Ltd. (603707): The rapid growth of performance is in line with expectations, opening up the international industrial chain of injections

Jianyou Co., Ltd. (603707): The rapid growth of performance is in line with expectations, opening up the international industrial chain of injections

Event: The company achieved operating income in the first half of 2019, net profit attributable to mothers, and non-net profit attributable to mothers were 11, respectively.

7.7 billion, 2.

8.9 billion, 2.

80 ppm, an increase of 38 in ten years.

44%, 27.

34%, 30.

13%; Realized 青岛夜网 operating income in the second quarter of 2019, net profit attributable to mothers, and non-net profit attributable to mothers were 5, respectively.

6.7 billion, 1.

40 billion, 1.

350,000 yuan, an increase of 36 in ten years.

78%, 33.

05%, 35.

74%; the company announced that it is planned that the wholly-owned subsidiary of Hong Kong Jianyou will obtain Meistereal Pharmaceuticals, Inc., an American sterile injections operating company, through capital increase in cash and intangible assets and debt-to-equity swaps.

83.

33% equity.

Viewpoints: The company achieved operating income in the first half of 2019, net profit attributable to mothers, and non-net profit attributable to mothers were 11, respectively.

7.7 billion, 2.

8.9 billion, 2.

80 ppm, an increase of 38 in ten years.

44%, 27.

34%, 30.

13%.

Among them, heparin raw material revenue is expected to be about 8 million, with an annual increase of more than 20%. The domestic sales of low-molecular-weight heparin preparations are about 8 million, an increase of about 60%; the company’s injection exports and CDMO business continue to maintain rapid growth;Interest rate 50.

08%, continued to increase, the second quarter of the single-quarter growth accelerated, the overall performance in line with expectations . the logic of internationalization of injections gradually realized, starting from 2019, the export of injections entered an explosive period.

The company is an international leader in injectables. In 2019, U.S. and European exports will usher in an outbreak: Jianyou Co., Ltd., as one of the rare domestic high-end FDA-certified injectable manufacturers, has an early layout of injectable exports. At present, 11 injectable ANDA have been approved./ Announcement of more than 30 ANDA injection products, and gradually build the core product Enoxaparin / standard heparin + small molecule anti-tumor injection + other heavy injection injection high-end injection export full product chain, in the future will benefit from the high gross profit US sterile injection market,The export of injections has entered an outbreak.
Heparin raw material + preparation integration, the properties of heparin resource products are prominent, Jianyou shares benefit from strategic crude stocks, and will continue to exert strength on heparin raw materials and low-molecular heparin preparations in the future: the heparin crude / raw material supply end has reached the upper limit in Europe and the United States, China has become the largestIncremental, due to the stable production of pigs in the main heparin raw material production areas (the number of pigs in the Chinese market will decline in 2019 due to the African swine fever epidemic), the unfavorable factors of the increase in the supply of crude heparin / raw materials, and the demand for downstream heparin preparationsStill strong, the inventory level of heparin preparation enterprises, the price of heparin raw materials will further increase in the future.

In the early stage, Jianyou Co., Ltd. has an accurate and accurate judgment on the supply of crude heparin upstream and the inventory of downstream preparation manufacturers / production of heparin injection. Since 2015, it has gradually established a crude heparin inventory.

After Enoxaparin injections are successively approved in Europe and the United States, the company will enjoy the bargaining power and raw material preparation integration advantages brought by its crude heparin inventory based on the advantages of raw materials and the European and American preparation market.

Profit forecast: We expect the company’s net profit attributable to its parent to be 5-20 in 2019-2021.

97, 7.

98, 10.

3.5 billion US dollars, an annual increase of 40.

7%, 33.

7%, 29.

7%, the current sustainable corresponding PE is 31x, 23x, 18x, maintaining the “Buy” rating.

Risk warning: The overseas approval of injectables is less than expected; the sales of heparin raw materials are less than expected; the pressure on medical insurance control costs continues to increase; the calculation may be inaccurate from the actual; the acquisition is uncertain.