Tiantan Biological (600161): The sales of blood products as a whole in line with expectations increased seasonally

Event: The company’s third quarter of 19 reported that net profit attributable to mothers increased year by year28.

26%.

Tiantan Biological released the third quarter report of 19, and achieved operating income of 25.

19 ppm, an increase of 22 in ten years.

50%; net profit attributable to mother 4.

67 ppm, an increase of 17 in ten years.

72%; deducted non-attributed net profit4.

660,000 yuan, an increase of 18 in ten years.

26%.

The company achieved operating income of 9Q3 in a single quarter.

USD 5.9 billion, an annual increase of 14.

68%; net profit attributable to mother 1.

73 ppm, an increase of 10 in ten years.

82%; deduct non-attributed net profit1.

73 ppm, an increase of 10 in ten years.

46%.

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

The company’s gross profit margin increased slightly, and sales and R & D expenses increased significantly.

In the first three quarters of 19, the company’s overall gross profit margin was 49.

12%, an increase of 0 every year.

85pct, we expect that the increase in the company’s gross profit margin may be mainly related to the price increase of some varieties.

In order to meet the needs of market development, the company strengthened marketing efforts and expanded marketing expenses. The sales expense ratio in the first three quarters increased to 6.

69% (+1.

12pct); but by quarter, the company’s sales expense ratio showed a declining trend from quarter to quarter, which is expected to be related to the continuous improvement of the industry’s prosperity.

In order to strengthen and accelerate the progress of research and development, the company’s research and development increased significantly, and the research and development expense ratio increased to 3.

25% (+0.

85pct).

Affected by this, the company’s period expense ratio rose to 15.

75% (+2.

04pct), which dragged down the company’s profit growth to a certain extent.

In terms of cash flow, the company’s net cash flow from operating activities in the first three quarters reached 6.

97 ppm, an increase of 18 years.

78%, good matching with net profit.

The single-quarter performance continued to increase month-on-month, and the sales of albumin and Jingpeng grew steadily.

The company’s 19Q3 single quarter revenue growth rate was 14.

68%, the earlier 19Q2 revenue growth rate is obvious, which is mainly related to the higher base in the same period last year, 18Q3 company revenue exceeded and the chain growth rate reached 44 respectively.

65% and 25.

34%.From an absolute amount perspective, the 四川耍耍网 company’s operating income increased quarter by quarter, and the revenue in 19Q3 increased by 12 from the previous quarter.

16%, sales of blood products maintained a steady growth trend.

According to the data disclosed by the China National People ‘s Procuratorate and local institutes, the company issued 3.37 million (+16) albums in the first three quarters.

30%), of which 1.19 million were issued in 19Q3 (-6.

(01%), terminal demand is expected to remain relatively strong, and actual sales growth rate will remain around 25%; Jing Bing issued 2.29 million (+15) in the first three quarters.

18%), of which 1.09 million were issued in 19Q3 (+30.

54%). Through the continuous promotion of marketing and academic education, the growth rate of terminal sales is expected to remain at about 20%.

In terms of special exemptions, the average number of approvals issued by the company for exemption, exemption and exemption for B exemption gradually increased, exceeding the growth rate of 53 respectively.

89%, 144.

73% and 186.

00%, the conversion market deepens the awareness of the necessity of exemption and exemption.

The volume of pulp extraction is expected to continue to grow steadily, and the release of production capacity + product optimization contributes to the elasticity of performance.

The company has increased the development advantage of the pulp station and can continuously obtain new pulp stations. The three major blood pulp extraction upgrades + newly approved pulp stations + old station growth will contribute nearly 610 tons of pulp extraction increase.The compound annual growth rate is 11.

3%.

At the same time, the company’s pulp adjustment was approved, which eased the tight production situation of Chengdu Rong and effectively improved the plasma utilization rate and capacity utilization rate.

After the completion of the Yongan blood system construction project, Chengdu Rongrong’s production capacity can be enlarged, which can better bring into play the scale effect. In terms of products, Chengdu Rongsheng Jingbing’s technology upgrades, factor product production, capacity release + yield improvement + product structure rich, the headquarters RongIncome and profits will increase significantly.

At present, the proportion of domestic recombinant coagulation factor VIII is constantly increasing, and the market space is large. Recombinant coagulation factor VIII is expected to become the company’s blockbuster variety.

Investment suggestion: Buy-A investment rating, 6-month target price of 32.

00 yuan.

We expect the company’s revenue growth to be 21 in 2019-2021.

0%, 18.

3%, 21.

1%, net profit growth rate was 18.

9%, 20.

1%, 24.

4%, outstanding growth; given Buy-A investment rating, 6-month target price is 32.

00 yuan, equivalent to 45 times the dynamic price-earnings ratio in 2020.

Risk reminder: product price risk, policy risk, security risk, integration is less than expected risk, Yongan blood system construction progress is less than expected risk, new batch of pulp stations is less than expected risk, research and development progress is less than expected risk, etc.