Tiantan Biological (600161) -2019H1 Review: Net profit grows 23% annually. Leading blood products perform well

Tiantan Biological (600161) -2019H1 Review: Net profit grows 23% annually. Leading blood products perform well

Investment Highlights Event: On August 22, 2019, the company released its semi-annual report for 2019.

In the first half of 2019, the company achieved operating income of 15.

60 ppm, an increase of 27 in ten years.

9%; net profit attributable to mother 2.

94 ppm, an increase of 22 in ten years.

2%; net profit of non-attributed mothers 2.

93 ppm, an increase of 23 in ten years.

4%.

Net operating cash flow 4.

5.7 billion, an increase of 36 in ten years.

87%.

The blood products business developed steadily, achieving a 23% increase in net profit.

In terms of quarters, the sales of blood products in the second quarter of 2019 continued to increase, with single-quarter revenue of 8%.

5.5 billion (28% +), net profit attributable to mothers1.

6.2 billion (25% +).

Gross profit margin, net profit margin and first quarter ratios remained stable at 49% and 19%, respectively.

In the first half of 2019, the company realized the collection of plasma 802.

55 tons, a net increase of 64 per year.

22 tons, an annual increase of 8.

70%.

In the first half of 2019, the company’s number of plasma collection stations (including substations) in 13 provinces / autonomous regions nationwide reached 57, of which 51 were in operation.

Renbai and Jingbing continued to maintain steady growth, of which the wholesale sales of human albumin (equivalent to 10g) increased by 30.

73%; Jing Cing (equivalent to 2.

5g) Annual sales increase by 20.

80%.

The proportion of all blood products issued in batches in 2019Q1 has increased. In the first half of 2019, human blood albumin (accounting for 23% of domestic albumin batches issued), Jingbing (26% of batches issued) and other major products were issued in batches.The quantity is at the forefront of the industry. The remaining products are exempted from accounting for 24% of the approved issuance, B exemptions account for 34% of the approved issuances, and mad exemptions account for 9% of the approved issuance.

The three expenses continued to grow with the business development, and the inventory and accounts receivable were basically normal.

Selling expenses for the first half of 20191.

08 million yuan, an increase of 57 in ten years.

9%, the first is to continue to strengthen market expansion efforts.

In the first half of 2019, the number of pharmacies in the company’s tertiary hospitals and other medical institutions increased, reaching a total of 9,938, an increase of 46% annually; pharmacies covered 3,436, an increase of 64%, and entered 25 benchmark hospitals and 36 keyDevelopment hospital.

Administrative expenses are 99.65 million yuan, an annual increase of 31.

89%, mainly because the company further improved the performance evaluation and salary incentives of the senior management and staff of the pulp station to stimulate work enthusiasm.

R & D expenses are 38.22 million yuan, an increase of 36 every year.

25%.

The company’s blood products business has promoted research and development projects such as recombinant coagulation 北京桑拿体验网 factors and chromatographic static propane, and made some progress in the first half of 2019.

The semi-annual report of the company’s inventory at the end of 201917.

8.8 billion, accounting for 31 of the assets.25%, a decline from the end of 2018, and basically the same as 2019Q1.

Accounts receivable and notes 5.

4.5 billion, accounting for 34% of revenue.

91%, an increase of about 5 percentage points from 2018H1, is expected to be mainly due to the increase in sales revenue volume, mismatched repayment time in the medium term, etc.

Profit forecast and investment advice: We expect the company’s operating income to be 34 in 2019-2021.

45, 40.

04, 46.

88 ppm, a ten-year increase of 17.

54%, 16.

22%, 17.

08%, net profit attributable to mothers was 6, respectively.

23, 7.

82 and 9.

71 ppm, an increase of 22 in ten years.

43%, 25.

45%, 24.

03%, corresponding EPS is 0.

60, 0.

75, 0.

93 yuan.

After the company has completed the integration, it has become a leading company in the blood products industry. Both the volume of pulp extraction and the number of pulp stations are in the industry leading level, unless the fourth-generation static propionate and recombinant coagulation factor Ⅷ provide space for future development in the research and maintain the “overweight” rating.
Risk reminder: the risk of less than expected integration, the risk of fluctuations in the price of blood products, and the risk of a decline in the gross profit margin of the blood product business.