East China Pharmaceutical (000963) Quarterly Report Review 2019: Industry continues to maintain rapid growth and business continues to pick up

East China Pharmaceutical (000963) Quarterly Report Review 2019: Industry continues to maintain rapid growth and business continues to pick up

This report reads: The 北京保健按摩 company’s first quarter report for 2019 exceeded market expectations. We expect the industrial sector to continue to maintain rapid growth, the commercial sector to continue to pick up, and maintain an overweight rating.

  Investment Highlights: Maintain “Overweight” rating.

The company announced the first quarter of 2019 and achieved operating income of 97.

5.0 billion, an annual increase of 23.

84%; net profit attributable to mother 9.

07 billion, an increase of 37 in ten years.

63%; net profit deducted from non-attributed mother 8.

5.6 billion, an increase of 30 in ten years.

45%, the first quarter performance exceeded market expectations.

We maintain our earnings forecast EPS1 for 2019-2021.

93/2.

36/2.

80 yuan, maintaining a target price of 42.

46 yuan, corresponding to 2019 PE22X, maintaining the “overweight” level.

  Industry continues to maintain a relatively high growth rate and business is picking up.

The manufacturing industry is expected to grow by 25% -30%. The growth of hundreds of capsules of specific varieties is expected. The growth rate of acarbose is expected to be slightly higher than that of the same period of last year.

The immunosuppressive and digestive plates are expected to maintain rapid growth, other second-line small varieties such as compound pioglitazone continue to maintain rapid growth, and industrial varieties continue to accelerate across the board.

The commercial sector continued to pick up, with a noticeable pick-up in the first quarter.

  Accelerating innovation and internationalization.

The company continues to increase its R & D investment and the R & D work is advancing rapidly.

The key varieties of liraglutide, mehuatinib, HD118, TTP273, insulin and other continuous 重庆耍耍网 progress, consistency evaluation, and generic drug application have been continuously promoted, and the research and development work is practical and efficient.

The pace of internationalization has accelerated, and pantoprazole injection US ANDA has been approved, and subsequent applications have been steadily advanced.

  catalyst.

The core business grew faster than expected, the innovation transition continued to advance, the pace of internationalization continued to advance, and the research and development progress exceeded expectations.

  risk warning.

The quantity purchase policy affects risks, and the risk of core product prices falling sharply.