Renhe Pharmaceutical (000650): Promote business development by increasing the proportion of self-products
Event: The company released an annual report, and net profit attributable to mothers increased by 33 each year.
20% of the company’s operating income in 2018, net profit attributable to mothers, net profit attributable to mothers after deduction is 44.
03 billion, 5.
0.6 billion, 4.
9.3 billion, an increase of 14 each year.
In the fourth quarter of 18, the company 重庆耍耍网 realized operating income, net profit attributable to mothers, and net profit attributable to mothers after deduction was 10.
6.7 billion, 1.
1.4 billion, 1.
10,000 yuan, down 5 each year.
The growth rate of the fourth quarter’s performance has decreased from the previous quarter.
Initially, the business sector represented by commercial subsidiaries maintained rapid growth. From the above situation, commercial subsidiaries maintained rapid growth.
Renhe Pharmaceutical is mainly responsible for branded products, with revenues and profits of 8 in 18 years.
2.4 billion, 2.
00 ppm, an increase of 15 in ten years.
93%, the proportion of high gross margin products increased, the proportion of OEMs fell, and the profit margin increased by 6.
Renhe China was originally responsible for general medicine and OEM business, initially introduced direct control terminal business, strong sales ability, 18 years of revenue and net profit.
03 billion, 2.
1.8 billion, an increase of 23 each year.
94% and 72.
Heli Pharmaceutical is another important commercial company with 18 years of revenue and 11 net profits.
7.3 billion, 0.
640,000 yuan, an annual increase of 65.
68% and 70.
The proportion of self-products will continue to increase, driving the gross profit margin to increase. In recent years, the company has promoted the upgrading of the industry, resetting its own products with approvals, and reducing its dependence on OEM.
Judging from the annual report, several core industrial companies have grown rapidly (Tonggu Renhe, Yaodu Renhe, Shine Pharmaceutical, and Jiangxi Pharmaceutical each increased 32 in 18).
The increase in the proportion of self-products has led to a continuous increase in gross profit margin. The company’s overall gross profit margin in 2012 was 42.
98%, an increase of 4 per year.
05pct, currently OEM still accounts for about 40%, there will still be room for replacement of its own products in the future.
The 19-21 results are expected to be 0.
52 yuan / share, 0.
65 yuan / share, 0.
The 80 yuan / share company is one of the most powerful brand OTC companies in China. The changes in industry policies have facilitated the sales of controlled sales models. The company promotes the gold single product strategy, management and incentive mechanism in place.
The company’s EPS for 19/20/21 is expected to be 0.
80 yuan, currently expected to correspond to PE 17/14/11 times, given a comparable industry average 2019 PE20X, 淡水桑拿网 corresponding to a reasonable value of 10.
34 yuan / share, maintain “Buy” rating.
Risks indicate the risk that intensified competition in the industry will cause product sales to fall short of expectations; the risk of industry policies negatively affecting the product; and potential risks in OEM business production.