Jianyou Shares (603707) 2018 Annual Report Comments: Heparin API + Domestic Preparations Boost High Growth

Jianyou shares released the 2018 annual report and the 2019 first quarter report.

2018: The company achieved operating revenue of 1.7 billion (YOY + 52.

81%); net profit attributable to mothers4.

250 thousand yuan (+35 compared with the same period last year).

11%); Realize net profit deducted from non-attribution4.

110 thousand yuan (+34 compared with the same period last year).


2019Q1: The company achieved operating income6.

100,000 yuan (+40 compared to the same period last year).

02%); achieve net profit attributable to mother 1.

4.9 billion (+ 22% YoY).

28%); net profit deducted from non-attributed mothers1.

4.4 billion (+ 25% year-on-year.


Heparin raw material medicines + domestic preparations promote high growth performance, and the increase in heparin raw material prices + sales expense growth affects the growth of net profit.

In terms of segments, the company’s standard heparin APIs achieved revenue in 201811.

8.4 billion (+ 28% YoY).

83%), domestic revenues3.

5.8 billion (YOY + 228.

72%), foreign agents achieved zero revenue.

4.1 billion (+14 compared to the same period last year).

96%), CDMO achieved zero revenue.

920,000 yuan (+161 compared with the same period last year).

twenty four%).

The gross profit margin of heparin raw materials decreased due to the continuous rise in the price of crude heparin, the upstream raw material.

10pc and sales expenses increased by 427 in ten years.

The 34% drag on net profit growth was significantly lower than revenue growth.

Under the influence of classical swine fever, high-quality heparin raw materials have certain resources, and the trend of rising volume and price is expected to continue.

In 2018, the company’s heparin API sales increased by 7.

03%, the price increased by 20 year-on-year.


According to data from the General Administration of Customs, the average export price of heparin in December 2018 was 6,156.

14 US dollars / thousand tons, an increase of 26 in ten years.

87%, gradual export volume reached 205 in 2018.

18 tons, an increase of 10 in ten years.

67%, the heparin raw material market continues to show a good trend of rising volume and price.

Under the influence of swine fever, high-quality crude heparin and high-quality APIs produced from the raw materials have certain resources, and the company, as the world’s most important supplier of high-quality heparin APIs, and the only part of the country that supplies heparin in large quantitiesOne of the API companies has also passed the US FDA on-site inspection and EU CEP certification. Through supplementary product quality advantages, the trend of heparin bulk drug prices rising is expected to continue.

The sharp increase in sales expense ratio led to an increase in the proportion of three expenses.The company’s selling expenses in 2018 were 2.

4.8 billion (+427 compared to the same period last year).

34%), the sales expense ratios from 2018Q1, 2018Q2, 2018Q3, 2018Q4, and 2019Q1 were 6, respectively.

93%, 12.

80%, 13.

41%, 26.

14%, 11.

Looking at 30%, although the sales expense ratio in 2018Q4 doubled compared to 2018Q3, the actual sales expenses in 2018 accounted for 14% of revenue.

59%, which is still at the short-term level in the same industry and has declined in the 南京桑拿网 first quarter of 2019.

The three fees (plus research and development expenses) accounted for the total proportion.

70%, an increase of 7 per year.

82 points.

Creating a low-molecular-weight heparin preparation business has become a new growth point of performance.

The company is the only domestic manufacturer of low-molecular-weight heparin preparations (enoxaparin sodium, nadroparin calcium, dalteparin sodium) that has three types of low-molecular-weight heparin preparations business development.With its advantages in procurement and raw material supply, low-molecular-weight heparin preparations are expected to become one of the new performance growth points for EDQM-certified heparin raw material drug manufacturers, which will simultaneously develop and consolidate their market position in domestic and foreign low-molecular-weight heparin preparations.

We expect the company’s operating income for 19/20/21 to be 24.



7.4 billion, net profit attributable to mother is 5.



70 ppm with a budget benefit of 1.



94 yuan, corresponding to 29/21/16 times the earnings rate of the market, given an “overweight” rating.

[Risk Tips]The price of heparin raw materials is lower than expected; the price of crude upstream heparin is too high, which causes the cost to rise faster; the sales of low molecular weight heparin preparations are lower than expected;