Hengrui Medicine (600276) 2019 Interim Report Review: Branch Line Reform Improves Sales Level Innovative Results Drive Growth of Performance

Hengrui Medicine (600276) 2019 Interim Report Review: Branch Line Reform Improves Sales Level Innovative Results Drive Growth of Performance

Report Summary: The company released its semi-annual report for 2019, which reported overall revenue of 100.

2.6 billion, an annual increase of 29.

19%; net profit attributable to mother 24.

12 billion, an increase of 26 previously.

32%; 22 after deduction.

8.8 billion, 25 annually.

21%; net operating cash flow 14.

52 ppm, an increase of 9 in ten years.


Innovation results + structural optimization drive the company’s performance growth The company’s continuous innovation results continue to be harvested, product pipelines are overlapped and supplemented, product structure continues to be optimized, rapid volume growth of new varieties + continuous growth of old products drive rapid growth in performance.

The company administers the four major business sectors of tumor, anus, radiography and comprehensive, and the newly released varieties of anti-tumor fields such as pirlotinib, carelizide, and thiopefilgrastim will release the amount if they enter the medical insurance in the future;In the first half of the year, the revenue of the anesthesia segment increased by more than 20%. Butofino increased rapidly this year because of price increases last year, and other varieties such as capofenine also increased to a certain extent. The contrast agent segment had insufficient supplies last year due to capacity problems.Solved, the growth rate of revenue in the first half of the year exceeded 40%; the growth rate of the 北京夜网 comprehensive segment was slower than that of other segments, mainly due to the old varieties, of which Irisib and Febutastat have grown rapidly in the past two years.

Branch line reform to improve professional level and consolidate the sales foundation Starting from 2018, the company will carry out sales branch line reform, establish a tumor, imaging and comprehensive product division according to product line, transform marketing models, and establish a professional marketing system.With the sales network of the country and above, the professional level of personnel has been continuously improved, laying a solid foundation for bigger and stronger products.

We believe that the company’s marketing system has undergone a qualitative change, from a traditional terminal-oriented to a product-oriented transformation, with more sophisticated academic promotion and higher clinical responsiveness. At the same time, it meets the company’s needs for clinical promotion of innovative drugs, and also provides new growth poles for product volume., Is expected to promote sales growth coefficient in the future.

In addition, the company continues to strengthen the staffing of the integrated segment and develop retail terminals to obtain new profit growth points. Currently, there are more than 1,000 personnel in the integrated line, and the future plan will reach 3,000.

The R & D expansion continues to increase, and the accumulation of heavy varieties is rich, which promotes future performance growth reports and the company’s R & D promotion.

800 million, an increase of 49 previously.

13%, the proportion of initial R & D investment is expected to reach a new high.

In the report, the company submitted 74 domestic patent applications, 21 international PCT applications, 13 domestic authorizations and 22 foreign authorizations.

The company is the company with the most research and development and the most innovative drugs in the domestic pharmaceutical industry. It has accumulated a lot of heavy varieties in the fields of anti-tumor, anesthesia, rheumatism, diabetes, etc., and then gradually listed on the market to gradually enrich the company’s product line and promote the company’s future performance growth.

Profit forecast: The company’s long-term development is stable and its profitability is excellent. It is the core target of the stock. We expect the company’s net profit attributable to its mothers to be 53 in 2019-2021.

2.1 billion, 68.

5.6 billion and 86.

25 ppm; EPS is 1.

20 yuan, 1.

55 yuan and 1.

95 yuan; corresponding PE is 66.

52x, 51.

63x and 41.

04x, maintaining the “recommended” level.

Risk Warning: Sales are below expectations; R & D is below expectations, other systemic risks