Tiantan Biological (600161): Sales expansion efforts increase performance slightly beyond expectations

Tiantan Biological (600161): Sales expansion efforts increase performance slightly beyond expectations

Event: The company released its semi-annual report for 2019 and achieved revenue of 15.

60,000 yuan, an annual increase of 27.

9%, net profit attributable to mothers was 300 million yuan, a year-on-year increase of 22%, net profit attributable to mothers after deduction of non-天津夜网deductibles was 300 million yuan, an annual increase of 23%.

Expansion of the sales side accelerated significantly, driving the performance slightly beyond expectations.

In terms of quarters, the company achieved revenue in 19Q2.

500 million US dollars, an annual increase of 28%, to achieve net profit attributable to mothers1.

60,000 yuan, an annual increase of 24.

6%, performance was slightly higher than expected.

1) In terms of sales, the company currently covers major key terminals in provinces and cities other than Hong Kong, Macao and Taiwan. It will continue to be 19H1. The company’s tertiary hospitals and other medical institutions will cover 9938 drugstores, an increase of 46%; of which 3436 will be covered by drug stores.It has grown by 64% every year, and has entered 25 benchmark hospitals and 36 key 合肥夜网 development hospitals. The number of company terminals currently leads the country, and the development of sales terminals has accelerated significantly. We believe that the potential of the domestic blood product market is still huge, and sales terminals are being dug.It is said to drive further volume of the company’s products.

2) In terms of core products: The sales promotion of the beneficiary company has been strengthened, and the company’s human albumin (equivalent to 10g) sales have increased by 30.

7%, Jing Cing (equivalent to 2.

5g) Sales increase by 20 per year.

8%; 2) In terms of the scale of pulp extraction, the continuation of 19H1, the company’s number of plasma collection stations (including substations) in 13 provinces / autonomous regions in the country reached 57, including 51 in the camp; during the 19H1 period, the company’s pulp extraction was about 802Tons, an annual increase of 8.

7%, both in the number of pulp stations and in the scale of mining companies are in the forefront of the country.

Production capacity is expected to open soon, and product lines are diversified and operating efficiency is expected to increase.

1) In terms of production capacity, the Yong’an blood system project of Chengdu Rongsheng, a holding subsidiary, is designed to have a capacity of 1,200 tons, including albumin, gamma globules and factor products. It is expected to complete completion inspection in March 2020. The completion of the Yongan blood system projectPutting into operation will enable the company’s single plant pulping capacity to reach the 1,000-ton scale, and the increase in scale efficiency will also drive down costs and contribute more profits.

2) In terms of product lines, Chengdu Rongsheng’s rabies patients’ immunoglobulins have been approved for drug registration, and the relevant production workshops have passed GMP certification. Recombinant human coagulation factor 正式 for injection has officially launched Phase I clinical research; a layer with independent intellectual property rightsThe precipitation process Jing Cing obtained the clinical trial notification of the drug. Through the continuous introduction of new products, the company’s profit level per ton of pulp will significantly increase.

3) In terms of operating efficiency, the running-in period of the integration of the previous blood products business has basically transitioned. It is expected that the company’s operating efficiency will continue to improve in the future. The core subsidiary companies such as Guizhou Blood System, Shanghai Blood System and Lanzhou Blood System will also gradually increase their capacity utilization.
Profit forecast and estimation.

It is expected that the net profit attributable to mothers for 2019-2021 will be 6, respectively.

300 million, 7.

700 million and 9.

3 trillion, a compound growth rate of 22% in 2019-21, corresponding to an estimated 47 times, 38 times and 31 times respectively.

Considering that the company is a leader in the domestic blood product industry, but there is room for extension and increase in production capacity, the company has room for growth and maintains a “buy” rating.

Risk reminder: the risk of intensified industry competition; the company’s operating efficiency improvement is less than expected risk.