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Kelun Pharmaceutical (002422) Three Development Strategy Comprehensively Breakthrough the Foundation of Future Development

Kelun Pharmaceutical (002422) “Three Development Strategy” Comprehensively Breakthrough the Foundation of Future Development
The company released the 2018 annual report on the evening of March 20, achieving a total operating income of 163.5.2 billion, an annual increase of 43.00%; net profit attributable to mother 12.1.3 billion, an increase of 62 in ten years.04%; basic profit income is 0.850,000 yuan, an increase of 63 in ten years.46%. Event comment: The performance is in line with expectations, and the “three-fire strategy” strategy for future development of the basic company achieved revenue of 163 in 2018.5.2 billion, net profit 12.1.3 billion, completed the year’s equity incentive evaluation indicators, and the performance was in line with market expectations.Looking at Q4 alone, revenue increased by 16.89%, profits fell 47.64%, mainly due to the high base in the same period of 2017. In terms of business, the income of infusion products was 98.8 billion (+30.37%), achieving sales of 44.9.7 billion bottles / bag (+0.71%), the revenue growth rate is much higher than the sales growth rate. First of all, after the implementation of the two-vote system, the ex-factory price was lower and higher, and the proportion of high-margin soft plastic products increased; antibiotics (chuanning) revenue 32.8.6 billion (+ 79%), net profit 6.At 09 ppm, it realized a significant reversal of losses, mainly through the release of capacity after environmental protection acceptance; other non-infusion preparations revenue28.57 trillion, a significant increase of 51.14%, in addition to the two-vote system, the company’s newly-listed high-end generic drugs in 17 and 18 realized revenue6.With a sales volume of USD 9.7 billion, the company has been selling rapidly; gradually, the company holds 20% equity of Shisi Medicine, and we expect to generate investment income in 18 years1.3-1.500 million.We believe that the company’s “three-shot strategy” for infusion + antibiotic + new drug development in 2018 has been fully developed, and the infusion and antibiotic business will continue to provide stable cash flow for new drug development in the future, which will become the basis for future development! The gross profit margin increased significantly, and the cash flow significantly improved the company’s overall gross profit margin in 201859.56%, a significant increase of more than 8 percentage points from last year, mainly due to the increase in gross profit margin of infusion and non-infusion preparations; net profit margin.75%, an increase of 0 from last year.66 units.In terms of expenses, the increase in sales expenses was about 95%, mainly due to the impact of the two-vote system and the increase in the sales and promotion of new drugs; the management expenses increased by about 13%, and the R & D expenditure was about 1.1 billion (+ 32%), of which expenses were 8%.85 ppm (+ 24%); financial expenses increased by 14%, mainly due to rising market financing rates. In addition, the net cash flow from operating activities increased by 145%, the net cash flow from investment activities was approximately 60%, the net cash flow from financing activities decreased by 214%, and the net cash and cash equivalents increased by 无锡夜网 1965%, and the company’s overall cash flow improved significantly. Generic drugs are rapidly expanding, and innovative drugs continue to be deployed. The company was approved in 2017 with 7 new varieties of drugs, such as Ruishu, Dort, and Domeng. In 2018, 18 new drugs were approved and revenues approached 700 million. We expect a profit margin of 10%about.Among them, Parecoxib (Kerishu), Binggu (Domontier), and Cinapron (Perot) respectively achieved sales revenue1.3.5 billion, 1.3.9 billion, 2.08 thousand yuan.We expect the company’s new generic drugs to continue to be approved in 2019, which will continue to maintain rapid growth.In terms of innovative drugs, the company obtained 5 NMPA innovative drug clinical trial approvals, submitted an innovative drug IND application to the US FDA, and has been approved to conduct clinical research. In addition, the company recently plans to integrate the bio-molecules and innovativeThe related assets of the molecular research and development project were transferred to Columbus, in order to further become another core platform for focused research and development of innovative drugs. We believe that this will help the company strengthen the management of innovative drug projects, accelerate research and development progress, and train childrenThe company’s future market financing capabilities will reduce the burden on listed companies.Under the guidance of the “innovation-driven” strategy, the company’s R & D systemization development has an initial stamina, and it will be accumulated in the future! Profit forecast: We estimate that the EPS for 2019-2021 will be 1.10/1.32/1.53 yuan, corresponding PE is 23/19/17 times, maintaining the “strongly recommended” level. Risk reminders: risks of changes in industry policies, environmental protection risks, drug quality risks, etc.