Enhua Pharmaceutical (002262): The accelerated growth of the pharmaceutical industry, focusing on R & D and expansion

Leading companies in the category of medicinal drugs, the non-net profit in 2018 increased by 39 per year.

90% of the company is the only domestic company dedicated to the development and production of central nervous system drugs. In 2018, the company achieved revenue of 38.

5.8 billion (+13.

69%), net profit attributable to shareholders of listed companies5.

2.5 billion (+32.

99%), net profit after deduction 4

9.8 billion (+39.

90%), rapid growth in performance exceeded market expectations.

In terms of single quarter performance, operating income in Q4 2018 was 9.

6.9 billion (+10.

75%), net profit after deduction is 0.

8杭州桑拿网 billion (+77.


We believe that the rapid growth of performance is mainly due to the company’s benefit from the adjustment of medical insurance and the implementation of tenders. The tendered beneficiaries such as dexmedetomidine, aripiprazole, duloxetine and remifentanil have achieved rapid growth.

The pharmaceutical industry is accelerating growth, the performance of anesthesia is outstanding, and the value of the raw material medicine segment has increased significantly. In 2018, the company’s pharmaceutical industry achieved revenue of 24.

2.6 billion (+31.

15%), the growth of the industrial sector continued to accelerate.

Revenue from narcotic drugs was 12%.

5.2 billion (+39.

78%), we expect traditional varieties of midazolam and etomidate to maintain steady growth, second-line varieties such as 杭州夜网论坛 dexmedetomidine, remifentanil, propofol, etc., will benefit from the launch of tenders to achieve accelerated volume; psychotropic drugsClose 8.

6.7 billion (+23.

73%), we expect stable growth of traditional varieties such as risperidone, products such as duloxetine and aripiprazole will achieve accelerated volume.

Neurology products achieved revenue 1.

2.7 billion (+33.

83%), mainly due to the increase in income contribution of varieties such as gabapentin.

Pharmaceutical business board realized revenue13.

8.1 billion (-6.

67%), which accounted for 35% of the company’s revenue.


The API segment achieved zero revenue.

7.4 billion (21.

74%), gross profit margin increased by 14.

98pp. Under the background of volume procurement, the value of APIs in the industrial chain of the pharmaceutical industry is becoming increasingly apparent.

R & D investment has increased significantly, accelerating the consistency evaluation and new drug research and development companies’ R & D for innovative products, and at the same time rapid consistency evaluation and new drug development progress.

In 2018, the company spent scientific research funds1.

72 ppm, an increase of 54 in ten years.


In the consistency evaluation project, 4 key varieties (risperidone ordinary tablets, risperidone dispersible tablets, clozapine tablets, dexmedetomidine hydrochloride injection) have been declared and replaced (including: risperidone ordinary tabletsHas passed on-site verification of consistency evaluation), more than 20 varieties are at different stages of research.In terms of research and development of new drugs, the company obtained 2 clinical approvals for first-class new drugs (Zilonapine succinate and D20140305-1 hydrochloride tablets) and 1 clinical approval for second-class new drugs (Pregabalin sustained-release capsules).

It is estimated that the company’s influence on the purchase of drugs with limited quantities is limited, and high-quality tracks ensure the company’s profit sustainability.

The company has high barriers in the field of pharmaceuticals for the treatment of hemp. The company relies on the volume of second-line varieties and the approval of new varieties, and its performance is expected to maintain a steady growth trend.

The far-end stock incentives landing, the performance evaluation index is based on the 2017 net profit, and the net profit after deduction from 2018 to 2020 can not exceed 20%, 44 respectively.

60% and 74.


Considering the slightly better-than-expected performance in 2018, we will change the EPS for 2019 and 2020 from 0.

60 yuan, 0.

The 73 yuan was raised to 0.

63 yuan, 0.

76 yuan, maintain “Buy” rating.

Risk warning: 1. The product is fiercely competitive and the sales volume is less than expected; 2. The consistency evaluation progress is less than expected;