Sinopharm Uniform (000028) 2019 Third Quarterly Report Review: Performance Meets Expectations, Batch and Zero Integration, Synergistic Advantages Obvious

Sinopharm Uniform (000028) 2019 Third Quarterly Report Review: Performance Meets Expectations, Batch and Zero Integration, Synergistic Advantages Obvious

Company dynamics The company released the third quarter report of 2019.

  Matters commented that the performance was in line with expectations, and the profit growth rate was improved compared with the first half of the year. The company achieved revenue of 388 in the first three quarters of 2019.

$ 76 trillion, an increase of 22 per year.

38%; realized net profit attributable to mother 9.

6.2 billion, an annual increase of 3.

79%; net profit deducted from non-attributed mothers9.

4.3 billion, an annual increase of 4.

14%, the rapid growth of profits is lower than the absolute growth rate of income is the increase in financial costs caused by changes in accounting policies, the holding subsidiary NUS Pharmacy’s value-added expansion funds and mergers and acquisitions warbolian led to the increase in minority shareholders’ profit and lossAnd other factors.

By quarter, the company achieved revenue of 136 in Q3 2019.

48ppm, an increase of 24 per year.

21%; net profit attributable to mothers3.

11 trillion, an increase of 9 in ten years.

14%; net profit deducted from non-attributed mothers3.

3.0 billion, an annual increase of 7.

45%, in line with market expectations.

The annual growth rate of the company’s profit margin at the end of 19Q3 has improved compared with the first half of the year. It is expected that the impact of the dilution of NUS Pharmacy’s equity on minority shareholders’ profits and losses will be gradually eliminated (the completion of industrial and commercial registration at the end of June 2018).

  During the period, the expense ratio was well controlled, deepening the integration of wholesale and integrated resources, and operating efficiency continued 四川耍耍网 to improve. The company’s gross profit margin for the first three quarters of 2019 was 10.

82%, a decline of 0 every year.

The 67 budgets are expected to be mainly due to factors such as the adjustment of the retail business income structure.

Company expenses during the first three quarters of 20197.

67%, a decrease of 0 per year.

44 totals, of which 5 are sales expenses.

78%, a decrease of 0 per year.

38 budgets, overhead costs1.

51%, a decrease of 0 every year.

19 budgets, 0 for financial expenses.

38%, rising by 0 every year.

13 averages.

The company’s net operating cash flow for the first three quarters of 2019 was 10.

7.3 billion, an annual increase of 90.

24%, a significant improvement every year.

The company’s inventory turnover reset in the first three quarters of 20197.

17 times, a year-on-南京夜网论坛year increase of 0.

49 times.

In 19H1, the company started the overall logistics planning of zero-totals, which promoted synergistic sales and high-speed growth while optimizing the integration of resources.

  Risk warnings: industry policy risks such as the two-vote system; risks of DTP business growth slower than expected; integration after asset restructuring is completed, management is less than expected risks; NUS pharmacy performance is less than expected risk investment recommendations for the next six months, maintaining “prudent value appreciationThe “Hold” rating is expected to give the company an EPS of 3 in 19 and 20 years.

01, 3.

39 yuan, with a closing price of 45 on October 23.90 yuan calculation, dynamic PE is 14 respectively.

94 times and 13.

28 times.

We believe that as the two leading pharmaceutical distribution companies in the wide area, the distribution business has a competitive advantage in terms of terminal coverage and logistics network construction. After absorbing the influence of policies such as the “two-vote system”, the company’s market share will gradually increase, and distribution revenue will increase.Accelerate the expected recovery; reorganization, the retail business NUS Pharmacy is expected to improve the operation level and profitability of NUS Pharmacy after the date of the war. The increase in the net interest rate is conducive to the continued release of performance and drive the company’s overall performance to grow steadily.

In the next six months, we will maintain a “cautious increase” rating.