Kelun Pharmaceutical (002422): 1Q performance is basically in line with expectations. The volume of new preparations in 2019 is worth looking forward to.

Kelun Pharmaceutical (002422): 1Q performance is basically in line with expectations. The volume of new preparations in 2019 is worth looking forward to.
The first quarter of 2019 results are basically in line with expectations. Kelun Pharmaceutical announced its first quarter of 2019 results: operating income 42.88 ppm, a ten-year increase of 9.05%; net profit attributable to parent company 3.36 ppm, 10-year average of 12.40%, corresponding to a relative profit of 0.23 yuan; deduct non-net profit 3.17 ‰, an average of two in ten years.04%.The deduction of non-net profit was in line with our expectations, and the excess was mainly due to the high base in the same period last year. Development trend 1Q performance growth basically in line with expectations.Deduction of non-net profit reduction 2.04% was finally due to the fact that the outbreak of influenza in the same period last year led to a higher base of explosive growth in the infusion sector, so that the company’s sales and research and development expansion still maintained relatively rapid growth.The lowest interest rate on the net profit side is 12.40%, mainly due to non-recurring gains and losses, the same period last year, the subsidiary of Zhejiang Border and Sichuan Kelun warehouse relocation income of 62.48 million yuan affected by a one-time factor.Initially, we believe that the company’s growth rate is expected to maintain a quarterly increase. New preparation sales in 2019 are worth looking forward to.The company’s new preparations achieved revenue in 20186.9.7 billion, exceeding market expectations.In the first quarter of 2019, we expect that the formulation sector will still maintain a rapid volume trend. We expect the new formulation sector to start contributing profits in the first quarter (without considering the impact of research and development expenses).At 成都桑拿网 first glance, we expect the new preparation board is expected to achieve more than $ 1.5 billion in revenue, and new drug sales are worth looking forward to. R & D funding continues to increase, and the pipeline is progressing well.1Q R & D funding 2.530,000 yuan, an increase of 30 in ten years.88%.At present, the company has 9 varieties including escitalyl oxalate oxalate, ciprobutyl hydrobromide, fluconazole and other products that have passed the consistency evaluation, and more than 20 new formulations have been approved for marketing.With the smooth progress of many of the company’s research varieties, we expect that the subsequent R & D investment may be further increased.We are optimistic about the company’s potential in the formulation sector. Earnings forecast We maintain our 2019 earnings forecast1.12 yuan unchanged, raised 2020 profit forecast by 4% to 1.46 yuan, with annual growth of 33.3% / 30.2%. It is estimated and suggested that the company currently can sustain 27/21 times P / E 19/20.Maintain the recommended level and target price of 40 yuan, corresponding to 36/27 times P / E in 19/20, compared with the current expectation of 32.2% upside. Risks of generic drug procurement through bid reduction; intermediate drug price reduction; sales of newly approved preparations fell short of expectations.