Hengrui Medicine (600276) 2019 first quarter report comment: high revenue growth PD-1 will soon be approved


Hengrui Medicine (600276) 2019 first quarter report comment: high revenue growth PD-1 will soon be approved

The company’s performance is in line with market expectations. It is expected that the oncology and anesthesia business will achieve a growth of about 30%. The average value of pirlotinib, 19K, and albumin paclitaxel will make the national medical insurance. The space utilization rate is expected to increase by +56.

67%, a rapid growth, PD-1 is expected to be approved for listing in 1-2 months.

The company’s performance is in line with market expectations.

The company’s 2019Q1 revenue, net profit, deducting non-net profit 49.

67 billion, 11.

9.3 billion, 11.

55 ppm, +28 a year.

77%, +25.

61%, +27.

76%, the income end achieved rapid growth, basically in line with market expectations.

It is expected 青岛夜网 that the oncology and anesthesia business will achieve a growth of about 30%, and three blockbuster oncology drugs are expected to reach this year’s national medical insurance.

The company’s revenue in the first quarter of 2019 achieved rapid growth. It is expected that the oncology drug business will achieve a growth of about 30%, of which pirlotinib will achieve more than 2 billion US dollars, a strong growth; anesthesia business and imaging business will achieve about 30%, 20%-25% growth.

The company’s newly listed varieties, such as pirlotinib, 19K, and albumin paclitaxel, are expected to be replaced by the national medical insurance list this year, thus achieving a share of 10 billion, 5 billion, and more than 5 billion.

R & D expenses have maintained high growth, and PD-1 is expected to be approved for listing within 1-2 months.

The company’s R & D expenses for 2019Q1 6.

62 trillion, +56 ten years ago.

67%, it is expected that the R & D expense ratio will exceed 15%.

The company focuses on the development of innovative drugs. PD-1 monoclonal antibody is already in the final stage of approval. It is expected to be approved for marketing within 1-2 months. PD-1 monoclonal antibodies have carried out more than 30 clinical trials, including non-small cell lung cancer.First-line, second-line liver cancer, and second-line esophageal cancer are expected to report production this year.

In addition to PD-1, the company’s remazolam is expected to go public this year, and regaglitin is expected to end production.

PD-L1 has entered clinical phase III, and there are no shortage of products with blockbuster potential in the follow-up pipeline, such as PD-L1 / TGF-β, IL-17, and CD47 target monoclonal antibodies.

The expense ratio is generally stable, and tax rate concessions are expected to be roughly replaced with equity incentive expenses.

The company sells, manages (excluding R & D) and has a financial expense ratio of 35.

75%, 9.

01%, -0.

12% every year -0.

51, -0.

62, +0.

50pct. The increase in the financial expense ratio is expected to be mainly due to the decrease in exchange gains caused by the appreciation of the RMB, and the overall expense ratio will remain stable.

The company’s effective tax rate is 14.

0%, a decrease of 2 per year.

2 PCT, which is expected to be roughly replaced by allocated incentive fees.

Net operating cash flow of the company 4.

270,000 yuan, at least -13.

79% is expected to be related to changes in accounting standards such as bills receivable.

Risk factors: failure of new drug research and development; research and development progress exceeds expectations; drug price risk.

Investment suggestion: The company’s product line layout is comprehensive, and the overseas market layout is leading domestic enterprises. New products such as pirlotinib, 19K, and albumin paclitaxel are gradually ramping up. PD-1 and other research products will be listed on the market. Performance is expected to maintain high growth and maintain expectations.The EPS for 2019/2020/2021 is 1.

43/1.

80/2.23 yuan, maintain “Buy” rating.