Shanghai Pharmaceuticals (601607) 2019 Interim Report Review: Industry and Commerce Develop Strong Performance

Shanghai Pharmaceuticals (601607) 2019 Interim Report Review: Industry and Commerce Develop Strong Performance

The performance increased steadily, and the cash flow improved. The company’s revenue in the first half of the year was 925.

7.5 billion (+ 22%), net profit attributable to mother 22.

8.6 billion (+12.

45%), deducting non-net profit 20.

9.5 billion (+10.


In the single quarter, Q2 revenue was 465.

6.9 billion (+17.

92%), net profit attributable to mother 11.

600 million (+14.

48%), maintaining a steady growth compared with the previous quarter.

Comprehensive gross profit margin for the first half of the year 14.

05% (-0.

05pp), where industry rose by 0.

1pp, commercial distribution fell by 0.

19pp, mainly due to factors such as volume purchase.

In the first half of the year, management expenses and sales expenses increased by zero.

07pp and 0.

08pp, most stable.

In terms of cash flow, net operating cash flow was 20.

2.3 billion (+87.

20%), mainly due to the accelerated collection of funds, especially in the pharmaceutical industry sector.

In addition the company was 16.

100 million accounts receivable carried out factoring business without recourse.

Pharmaceutical industry: Revenue continues to grow, and research and development accelerates the 2019 H1 company’s industrial revenue 119.

4.2 billion (+24.

05%), sales income of 60 key varieties67.

7.3 billion (+31.


Guangdong Tianpu’s two core products completed the reorganization of hospital terminal sales in the first half of the year.

5%, of which Temploan sales income 3.

900 million, Kalikang sales revenue1.

800 million.

In terms of R & D funding, R & D expenses in the first half of the year5.

6.4 billion (+17.

84%), accounting for 4 of the industrial sector revenue.

72%, expected to reach 10% after 3 years.

At present, the company has completed the BE declaration for 8 products and 9 products to the State Drug Administration, including telmisartan tablets and lansoprazole for injection.In addition, the reporting company and the Russian biopharmaceutical company BIOCAD formally signed an agreement to establish a joint venture biopharmaceutical company, and it is expected that the cooperative product will be declared to the CFDA before the end of the year.

Pharmaceutical business: The growth rate of performance has increased, and the performance of import agents has been outstanding. The distribution business achieved sales revenue of 801 in the first half of the year.

9.4 billion (+21.

04%), the retail business realized sales revenue of 38.

3.7 billion (+22.

43%), maintaining a high growth trend.

It is entirely because of the increase in the proportion of pure sales that full coverage of medical institutions in Shanghai and Liaoning has been achieved. The impact of the two-vote system on the transfer business has basically been absorbed, and other import agency services have continued to advance.

In the first half of the year, the company cooperated with Pfizer to obtain the national agency rights of Cervant and Dozer; provide import distribution services for Ecotelon Slippar (Utopo); two major PD-1 products listed last yearSame strong performance as Creta.

Risk warning: industry policy changes; market expansion fails to meet expectations; consistency evaluation fails to meet expectations.

Investment suggestion: Maintain the “Buy” rating as an integrated enterprise leader with unique industrial chain advantages. We predict that the company will be in 2019?
Net profit attributable to mothers is 43 in 2021.



77 trillion, respectively increased by 11.

9% / 13% 11.

6%, the current sustainable corresponding PE is 12, respectively.



9x, 杭州桑拿网 according to 13-15xPE in 2020, a reasonable estimate is 22.


95 yuan, maintain “Buy” rating.