Pien Tze Huang (600436): H1 Pien Tze Huang’s performance in 2019 maintained steady growth and gradually increased by 20.

4% meet expectations

Pien Tze Huang (600436): H1 Pien Tze Huang’s performance in 2019 maintained steady growth and gradually increased by 20.

4% meet expectations

Investment Highlights From January to June 2019, the company achieved revenue growth of 20.

40%, net profit attributable to mothers increases by 20 per year.

89%, in line with expectations: The company announced the 2019 semi-annual report and achieved a total operating income of 28.

9.4 billion, an annual increase of 20.

40%; net profit attributable to shareholders of listed companies7.

470,000 yuan, an increase of 20 in ten years.

89%, net profit attributable to non-recurring gains and losses of shareholders of listed companies7.

45 ppm, an increase of 23 in ten years.

10%, in line with expectations.

In Q2 2019, the company realized revenue of 14.

10 ppm, an increase of 19 in ten years.

33%; Net profit attributable to shareholders of listed companies.

42 ppm, an increase of 17 in ten years.

42%; non-net profit attributable to shareholders of listed companies.

42 ppm, an increase of 21 in ten years.

41%, in line with expectations.

Pianzai’s core product sales are growing steadily, and the general drug, commercial, and cosmetics sectors are accelerating: from the data in the interim report, although the base in the same period of 2018 is relatively high, the company is still in a high-speed growth trend, and the revenue and net profit growth rates have remained atAbove 20%.

Among them, the company’s parent company report is the sales composition of its core product Pien Tze Huang series.

At the baseline of the report, in the company’s parent company statement, the income and net profit attributable to the parent were 11, respectively.

9.1 billion and 6.

8.9 billion, an increase of 14 each year.

80% and 11.

39%.

After July 2017, the company’s product prices remained relatively stable, and its parent company’s statement income fully reflected the continued growth of Pien Tze Huang’s sales.

In terms of general medicine, the company comprehensively combed general medicine products and adhered to one product and one strategy, and changed the core core general medicine varieties such as Chuanbei Qingfei Syrup, Niuhuang Jiedu Tablets, Shaolin Zhenggujing, Huoxiang Zhengqishui, Yindan Pinggan CapsulesFocus on development.

At the same time, the report merged the company to advance the equity transfer project of China Resources Pien Tze Huang Pharmaceutical Co., Ltd. to further improve the production and sales management of generic drugs.

In addition to the company’s “one core”, the company’s “two wings” toothpaste, cosmetics and other products also maintained rapid growth.

From January to June 2019, the company’s pharmaceutical business income increased by 2.

52 million, sales of cosmetics segment increased by 8696 million, maintaining a good growth trend, becoming an important driving force for the development of companies outside core products.

Profit forecast and investment 杭州夜网 grade: 2019 to 2021 will usher in a period of rapid growth in performance, and its sales revenue is 60.

2.1 billion, 74.

74 million and 91.

27 ppm, an increase of 26 in ten years.

3%, 24.

1% and 22.

1%; net profit attributable to parent company is 14.9.5 billion, 19.

19 ppm and 24.

33 ppm, an increase of 30 in ten years.

8%, 28.

3% and 26.

7%; EPS is 2.

48 yuan, 3.

18 yuan and 4.

03 yuan.

In view of the scale, clear curative effect of the traditional Chinese medicine industry of Pianzi 癀, and the change in the trend of “volume and price”, the space for price increases and the number of customer groups is very broad in the future. We believe that the company’s growth model is clear and is expected to becomeOne of the flags in the field of Chinese medicine health care in China, therefore, maintain the company’s “Buy” rating.

Risk warning: Pien Tze Huang rises more than expected; market promotion exceeds expectations; risk of supply and price fluctuation of raw materials and Chinese medicinal materials