Tasly (600535): Purouke Continues High Growth and Strengthens R & D Investment


Tasly (600535): Purouke Continues High Growth and Strengthens R & D Investment

2018 results were slightly lower than expected Tasly’s 2018 results: operating income of 179.

90 ppm, an increase of 10 years.

78%; net profit attributable to parent company 15.

45 ppm, an increase of 12 in ten years.

25%, corresponding to a profit of 1.

02 yuan.

The performance was slightly lower than our expectation, mainly because the industrial growth exceeded expectations.

The company plans to distribute a cash dividend of 3 for every 10 shares.

00 yuan (including tax).

Development trend Puyouke continues to maintain rapid growth and is expected to become a new growth point.

By industry, the pharmaceutical industry revenue in 2018 was 71.

270,000 yuan, an increase of 4.

59%, of which the Chinese medicine sector income 53.

5.8 billion (-0.

20%), income from the chemical and pharmaceuticals segment was 15.

One million yuan (+14.

54%), revenue of chemical raw materials medicine segment 40.67 million yuan (+12.

22%), income from the biopharmaceutical sector 2.

2.8 billion (+129.

58%). At present, Puyouke’s sales network has covered more than 1,700 hospitals, and has 46 offices, with nearly 300 sales staff, aiming to maintain rapid growth; 107 pharmaceutical business income.

780,000 yuan, an increase of 17.

At 07%, the company further optimized its business structure and enhanced the terminal sales capabilities of retail chain drug stores.

Revenue for the first quarter of 2019 was 45.

71 ppm, an increase of 15 in ten years.

66% (of which industrial growth was 10.

38%, business growth 17.

59%); net profit attributable to parent company4.

48 ppm, an increase of 20 in 杭州夜网论坛 ten years.

64%, basically in line with expectations.

Operating cash flow increased by 288%.

The company’s comprehensive gross profit margin was 36 in 2018.

20%, a decrease of 0.

09ppt, because low-margin business is growing faster than industry.

Selling expense ratio 15.

51%, a decrease of 0.

24ppt, mainly due to the rapid growth of commercial revenue.

Operating net cash flow 14.
940 thousand yuan (-8 in 2017.
2.3 billion), an increase of 287.

75%, mainly due to bill maturity collection and bill discounting over the same period last year.

Focus on the field of major diseases, the coordinated development of traditional Chinese medicine, biological medicine, and chemical medicine.

The company supplements the product line through innovative research and development, cooperative research and development, and product transformation. It focuses on major disease areas such as cardiovascular, cerebrovascular, digestive metabolism, and antitumor.Co-developed pharmaceutical platform.

Company R & D funding in 201812.

20,000 yuan, accounting for 16% of the pharmaceutical industry’s revenue.

87%, continue to increase research and development investment, in the future is expected to continue to optimize the product structure to ensure sustainable growth of the company’s performance.

Earnings forecasts are maintained at 1 for 2019/2020.

16 yuan / 1.

30 yuan, with annual growth of 13.

2% / 12.


We estimate 20/18 times P / E of 2019/2020 corresponding to the current expectations of the proposed company and maintain the recommended level. Considering that the company continues to strengthen R & D investment and the development prospects of the biopharmaceutical sector are large, we raise our target price.

7% to 28 yuan, corresponding to 24/22 times P / E in 2019/2020, compared with the current merger of 20.

2% space.

Risks Compound danshen dripping pills FDA exceeded expectations; new drug market progress exceeded expectations.