Medium-term profit of pharmaceutical listed companies increased 46% year-on-year

As of August 31, 2010, all pharmaceutical listed companies have announced their 2010 interim results, and the operating income and net profit of the pharmaceutical sector have performed well. They have increased by 29.36% and 46.95% year-on-year, respectively; the growth rate has accelerated; the gross profit margin increased slightly by 0.9. Percentage point to 30.3%, sales margin increased by 1.6% to 11.51%. The overall performance of the sector is slightly better than the macro data of the pharmaceutical manufacturing industry. Overall, nearly one-third of pharmaceutical listed companies have seen rapid growth in profits, but nearly one-third of companies have experienced different degrees of decline in performance. Although the overall performance of the industry did not continue the rapid growth in 2009, it also showed stability.
From the subsection:
The growth of APIs was driven by factors such as the year-on-year increase in VA and VE prices. The overall operating income of the Pharmaceutical API segment increased by 29% year-on-year, net profit increased by 56% year-on-year, and both gross margin and sales margin improved. The industry growth was mainly driven by Haipurui, North China Pharmaceutical, Zhejiang Pharmaceuticals and Xinhecheng. Partially benefited from the year-on-year increase in VA and VE prices, but the price chain showed a downward trend, and the year-on-year decline in the second half is expected to be significant. Most of the company's performance did not change much during the stable period of the industry;
Chemicals remained stable overall: Chemicals sub-sector revenue and net profit grew 18% and 24% year-on-year;
The performance of the individual stocks in the Chinese-medicine sub-section increased broadly: the income from the Chinese-medicine sub-section increased by 17% year-on-year, and the net profit increased by 34%; the gross profit margin and sales margin increased by approximately 2.3%. All the stocks basically achieved growth in their performance. Among them, Dongda Ejiao, Yunnan Baiyao, Kangmei Pharmaceutical, China Resources Sanjiu and other large market capitalization companies still showed good growth. In the absence of investment in the market, this category has significant resource endowments. A stable and growing company is a good investment target;
The biopharmaceutical sub-subsector continued high growth: revenue and net profit surged by 40% and 60% year-on-year, and profit margins increased significantly. The high growth rate of the industry is mainly driven by the outbreak of influenza A. It is expected that the probability of continued growth in the second half of the year in the last year is not significant.
Medical Device Sub-sector Boom: The medical device sub-list listed companies performed well and their net profit increased by 51% year-on-year. Under the support of expanding demand for basic medical devices and updating procurement, the industrial boom will continue.
The growth of pharmaceutical commerce is slow, and the statistical coverage of shanghai drugs has a significant influence: Without accounting for the contribution of new drugs, pharmaceutical business revenue and profit growth is 22% and 17%, which is slower than that of other sub-sectors. The integration of resources in the industry is heavy. The distribution is still the main line of inspection of pharmaceutical commercial stocks;
Healthcare services focus on individual stocks: The Health Care Services sub-section can focus on Aier Ophthalmic and General Care Medical with further expansion.
Guotai Junan believes that it should follow the trend of changes in the quarterly report, grasp the company's growth context, and select shares from the bottom up. At present, the main recommended varieties:
Companies that may benefit from the Twelfth Five-Year Plan of the circulation industry: Shanghai Pharmaceuticals (integration leads to a higher than expected mid-year report and antibiotic asset injection in the second half of the year), and consistent growth in the growth of the pharmaceutical industry. First-line growth stocks: Yunnan Baiyao (toothpaste and transdermal skin The proportion of net profit is very large, and the growth rate of toothpaste may reach 60% next year.) Dong'e Ejiao (Ejiao's current price difference is already great, price increase is expected to be strong), Hisun Pharmaceutical has high growth potential, and companies with possible outbreaks of performance include: Coron Pharmaceuticals (soft plasticizing process of large infusions), Haixiang Pharmaceutical (big performance of leading varieties), Yuheng Pharmaceutical, Shanghai Lai Shi, Renfu Technology, Enhua Pharmaceutical, Zhongheng Group (dominant Variety flexibility, low valuation).
According to Guotai Junan analysis, only less than four months were left in 2010. Harbin Pharmaceuticals, Tai Chi Group, and Tong Junge, which are expected to have asset integration, can also be concerned recently.