Hengrui Medicine (600276): Revenue growth continues to accelerate, R & D expansion continues to grow

Hengrui Medicine (600276): Revenue growth continues to accelerate, R & D expansion continues to grow

Investment Highlights Performance Summary: The company achieved operating income of 100 in the first half of 2019.

30,000 yuan, an increase of 29 in ten years.

2%; net profit attributable to mother 24.

10,000 yuan, an increase of 26 in ten years.

3%; net profit after deduction 22.

90,000 yuan, an increase of 25 in ten years.


  Revenue growth has accelerated, and heavy volume of new varieties has driven continued growth.

In the second quarter of 2019, the realized revenue and net profit attributable to mothers were 50.

600 million, 12.

20,000 yuan, an increase of 29 in ten years.

6%, 27%, the annual growth rate is higher than the second quarter of 2018.

  The 2019H1 revenue growth is accelerating initially: 1) After the company’s sales division, the sales of various line products have been activated, and the comprehensive line products mainly based on irexibu and febutastat have rapidly increased in volume; 2)The sales of the approved heavy varieties have made significant contributions. After the approval of 19K, pirlotinib, and paclitaxel (albumin-binding type), they have each achieved significant revenue.

The expense ratio remained stable during the first half of the year, with sales expenses in 2019H1 36.

4%, basically the same as 2018H1; management expenses expenditure23.

5%, higher than the same period in 2018 2.

One single, mainly due to the rapid increase 北京桑拿洗浴保健 in research and development costs.

  Continued a high proportion of R & D investment, and the blockbuster PD-1 was approved for listing.

In 2019H1, the company’s R & D occupation is 14.

800 million yuan, accounting for 14.

8%, a year-on-year increase of 49%.

In 2019H1, five Class 1 innovative drugs were added for clinical application, including 3 Class 1 chemical drugs and 2 Class 1 biological drugs. Until now, the number of Class 1 new drugs gradually applied by the company has exceeded 50, which is far ahead in China.

The company’s many years of R & D investment and accumulation continue to be realized in 2019. The company’s heavyweight PD-1 monoclonal antibody was approved in May and officially launched for sale at the end of July; new indications for PD-1 are being promoted in an orderly manner.Drug-induced liver cancer treatment indications have been reported, and combined with apatinib to treat liver cancer indications has started a phase III clinical trial in the United States.

The ultra-short-acting general anesthetic drug remazolam is in the process of reporting its orderly progress and is expected to be approved by the end of 2019.

  The internationalization strategy continued to advance.

In 2019H1, in the generic drugs, ivabradine bisulfate tablets were approved in the United Kingdom, Germany and the Netherlands. In this way, an API application was submitted to the US FDA, and an API application was delivered to emerging markets such as New Zealand; for innovative drugsA phase III international multi-center clinical trial of anti-PD-1 antibody combined with apatinib mesylate in the first-line treatment of hepatocellular carcinoma was launched in the United States.

As of now, the company has 18 injection products including injections, oral preparations and rehabilitation anesthetics approved in Europe, America and Japan.

  Profit forecast and rating.

The EPS for 2019-2021 is expected to be 1.

22 yuan, 1.

60 yuan, 2.

03 yuan, corresponding to PE is 63, 48, 38 times.

The approval of sales reforms and innovative varieties catalyzes the company into a new development cycle, and promotes the company’s strategic transformation from a traditional generic drug company to an innovative drug company. Maintaining a “buy” rating.Expectations and other risks.