Fosun Pharma (600196): Performance exceeds expectations and innovation brings hope

Fosun Pharma (600196): Performance exceeds expectations and innovation brings hope

Event: The company released its 2018 annual report and achieved operating income of 249.

180,000 yuan, an increase of 34 in ten years.

45%; net profit attributable to mother 27.

08 billion, down 13 a year.

3%; net profit attributable to non-attributed mothers is 20.

9 trillion, down 10 a year.


Revenue increased significantly, but due to research and development investment, substitution of subsidiaries and participating companies, and interest rate growth, the performance fell short of expectations.

With the growth of core product revenue, the contribution of new mergers and acquisitions and the development of medical services business, the company’s 南京桑拿网 operating income has increased significantly. After excluding new mergers and acquisitions in 2017, the revenue still increased by 20%.


Reported first-level pharmaceutical R & D and manufacturing revenue was 18.9 billion yuan, an annual increase of 41.

6%, a significant growth rate; medical services and equipment and diagnostics revenue were 26 and 36 trillion, respectively, with a slight growth rate, an increase of 22.

7% and 13.


Sinopharm Holdings grasped the favorable indicators of medical devices and actively expanded the construction of pharmaceutical distribution and retail networks. The report realized revenue of 344.5 billion yuan, an increase of 11.


Increasing research and development and business layout, increased costs, lower profits of the subsidiary Aohong Pharmaceutical and the impairment of goodwill provision by Brace, etc. At the same time, Fuhong Hanlin’s employee equity incentive plan is reporting.Expenses for the payment of shares in the middle and early stages also have an important impact on the company’s performance growth.

The reported asset disposal income decreased by 108%, which was the beginning of the company’s non-recurring gains and losses.

In addition, due to factors such as Fosun Kate, Intuitive Fosun and other joint ventures still in the early stage of transfer, and the early intervention of the new hospital construction of the United Family Hospital led to improvements in the company’s operations this year.

The monoclonal antibody enters the harvest period. This year, CAR-T is expected to achieve substantial progress, the implementation of the generic drug consistency evaluation will be accelerated, and the innovation incubation platform will continue to operate.

The company is currently in the R & D budget period, and the report estimates that R & D expenses will reach $ 1.5 billion, with an annual increase of 44.

1%, the R & D pipeline is rich in content and enhanced in strength.

1) Innovative drugs: Fuhong Hanlin product rituximab (Hanli Kang) was submitted to the market in the report, which is the first case in China.They are all in Phase III clinical trials. As the first echelon of domestic R & D, the company has built a highly in-depth monoclonal antibody R & D pipeline.

Fosun Kate FKC876 obtained clinical approval in September 2018, and conducted gradual trials to complete in 2019 and become the first CAR-T product listed in China.

The investment in research and development of small molecule innovative drugs is also obvious. Currently, nine products have been approved for clinical trials in mainland China.

2) Generic drugs: Accelerate the implementation of consistency evaluation, and report that a series of 9 products including amlodipine besylate tablets (Shilida) and alfacalcidol tablets (Li Qing) passed the generic drug consistency evaluation for the company’s futureEnjoy the inclusion of the national drug bidding pricing bonus.

3) Innovation incubation platforms: Promote innovation research and development by establishing innovation incubation platforms and other ways. At present, Fosun Leading Intelligence, Fosun Hongchuang, Novelstar and other platforms have successively shipped and operated.

Profit forecast and rating.

Due to lower-than-expected results in 2018, we lowered our profit forecast. At the same time, based on the company’s good endogenous growth and welcoming the harvest period of innovative drugs, the company’s EPS for 2019-2021 is expected to be 1.

18 yuan, 1.

37 yuan, 1.

61 yuan, corresponding to the current expected PE is 24 times, 21 times and 18 times.

The company’s endogenous growth is strong, and the continuous advancement of new product research and development has promoted the company’s estimates and maintained a “buy” rating.

Risk reminder: the progress of drug development may be lower than expected risks, the risk of outsourcing mergers and acquisitions integration or lower than expected risks, or the risk of continuous decline in joint venture performance.