Shanghai Pharmaceuticals (601607): State-owned enterprise reform pacesetter encourages long-term development
Event Shanghai Pharmaceuticals released the 2019 Stock Budget Incentive Plan (Budget) On the evening of April 10, the company released the 2019 Stock Budget Incentive Plan (Budget). It plans to include 8 senior executives and middle managers, and a total of 215 core technology business backbones.Incentive Stock Budget with a quantity of 2,842.
09 million shares, accounting for 1% of the company’s current total share capital, the exercise price is 21.
Brief comment on the first large-scale pharmaceutical state-owned enterprises to participate in incentives and start a new model of mixed ownership reform. Shanghai Pharmaceuticals, as one of the three national pharmaceutical business leaders, introduced the introduction of incentive programs for the first time. We believe that the following three points are worth paying attention to:,wide range.
Calculated based on the amount, the amount of the budget granted is about 2018, and 2-3 times the executive compensation. It should have sufficient incentives for the company’s executives and middle managers, and be consistent with the interests of shareholders; 2) The incentive is timely.
Since the new leader of Shanghai Pharmaceuticals took office at the end of 2016, it has made bold reforms in many aspects and at various levels, and it has already been reflected in its performance. In 2017 and 2018, the industrial profits increased by more than 15% for two consecutive years. Commercially acquired Kangdele,The territory has continued to expand and become the country’s largest import drug agent, and subsequently launched a fair incentive assessment, which will help the company to further consolidate the reform results and improve asset quality; 3) The design of the assessment indicators is intended to be long-term.
The assessment plan focuses on assessing revenue and ROE, setting an extension of the ROE assessment target to 12% in 2020 (10 in 2018.
34%), and ROE assessment accounted for 40% of the strategic expected weight, industrial income growth accounted for 30%, research and development expenses accounted for 20%, and business income accounted for 10%, which will help the company to gradually transform in the next 4 years (2019-2022)For innovative pharmaceutical companies.
We believe that the launch of the incentive will promote the company’s new round of scale growth and operation quality improvement, which will benefit the company’s long-term development.
Industrial growth for the seventh consecutive quarter, thanks to the company’s sales reform in 2017 the company’s pharmaceutical industry sales revenue 194.
62 ppm, an increase of 29 over the same period last year.
86%, excluding Guangdong Tianpu operating income4.
63 ppm, the industry’s endogenous growth still reaches 26.
77%, the company’s pharmaceutical industry sales revenue has maintained rapid growth for seven consecutive quarters, long-term sales revenue of more than 100 million products reached 31, an increase of 3 from the previous year.
The driving force for the company’s high growth lies in the company’s establishment of market-oriented sales reforms, continued implementation of the implementation of domain focus and key product focus strategies, and relying on the company’s strong commercial distribution network to promote sales of 60 key varieties.
In 2018, the sales revenue of 60 key products increased by 28 each year.
52%, the number of key varieties over one hundred million, key sales indicators, gross profit margin and other key indicators have steadily increased.
R & D promotes accelerated growth, and innovation highly recognizes the company’s total R & D investment.
89 million (including capitalization expenditures such as construction in progress, 天津夜网 fixed assets).
Total R & D funding.
610,000 yuan, an increase of 34 in ten years.
22%, accounting for 5 of industrial sales revenue.
Of which 18.
70% is invested in research and development of innovative drugs, 19.
93% invested in generic drug research and development, 33.
60% is invested in the secondary development of existing products, 27.
77% went to the consistency evaluation of the quality and benefit of generic drugs.
Captopril tablets, fluoxetine chloride capsules.
The four varieties of metformin hydrochloride sustained-release tablets and hydrochlorothiazide tablets have passed the consistency assessment. Duloxetine hydrochloride enteric-coated capsules, levonorgestrel tablets and ibuprofen sustained-release capsules have completed 32 specifications.BE test and indicate to the State Drug Administration.
The company is currently researching 苏州夜网论坛 new drugs in 4 categories and 10 varieties, 7 of which are in clinical phase I, 2 are in clinical phase II, and 1 is in clinical application stage.
The merger and acquisition of Kangdele brings new development opportunities to commercial distribution. The drug collection and collection policy is conducive to the industry’s concentration to rapidly increase the company’s pharmaceutical distribution business and achieve sales revenue of 1,394.
4.5 billion, an annual increase of 20.
06%; gross profit margin 6.
85%, a year-on-year increase of 0.
In February 2018, the company completed the acquisition of Kantarak China, the largest merger in the history of Chinese pharmaceutical business, replacing Kantarak’s consolidated revenue of 20.2 billion, and the company’s restructuring and distribution business grew 2.
66%.Through integration and synergy, the overall competitive pattern and industrial advantages of Shanghai Pharmaceuticals’ distribution business are reflected in the following three aspects: 1) Shanghai’s pharmaceutical distribution scale ranks second in the industry, with branch campuses expanded to 24 provinces; 2) Shanghai Pharmaceuticals becomes the largest in ChinaImport agents and distributors in China rank first in the country in terms of product specifications and sales amount; 3) The effective enhancement of imported drug distribution and DTP pharmacy business has strengthened the company’s ability to obtain the total generation of imported varieties.年 年CDE批准上市的新药中，通过全国商业分销公司进口代理的品种共计20个，上海医药共获得其中15个进口药品全国总代理，囊括了两大PD-1新药欧狄沃（Opdivo）与Key products such as Keytruda and Leweima (lenvatinib mesylate), the first-line treatment of liver cancer in Japan’s Eisai Company, are among the blockbuster products.
This will help the company to maintain stable growth in the pharmaceutical distribution business in the future when the scale of generic drugs shrinks.
In addition, the company has further increased its market share through the National Medical Insurance Bureau ‘s volume procurement policy. It has won the bid for drug distributors in the Shanghai area and has obtained a market share of 63%. It is working hard to seize the potential of the policy.It has become a rapidly increasing concentration of the pharmaceutical distribution industry.
Pharmaceutical retail continued to develop innovative business, and Shanghai Pharmaceutical Cloud Health experienced explosive growth in 2018. The company’s pharmaceutical retail business achieved sales revenue of 72.
20,000 yuan, an increase of 27 in ten years.
70%; gross profit margin 14.
84%, down by 1 every year.
There are more than 2,000 retail pharmacies in 16 provinces, autonomous regions, and municipalities across the country, of which Shanghai Fahrenheit Pharmacy is one of the largest pharmaceutical retail companies in East China, and merged with Shanghai Pharmaceutical Cloud Health to build an electronic prescription flow conversion-basedInnovative pharmaceutical e-commerce model.
Shanghai Yaoyun Health is developing the “Internet +” business platform for new retail of prescription drugs, and entering the electronic prescription business, realizing electronic prescription circulation 848.
There were 870,000, and 2 million e-prescribing prescriptions in 2017 showed an explosive growth, gradually connecting 340 medical institutions and serving more than 3.6 million patients.
The financial indicators are stable, and the assets are still stable under the extension. The company’s core financial indicators remain good.
As of December 31, 2018, the company’s assets and liabilities had renewed 63.
40%, an annual increase of 5.
The 45 singles were mainly due to the increase in debt brought about by the acquisition of Kantar;
Two days, the index fell significantly compared with the first three quarters; the company’s operating cash flow was 31.
35 ppm, an increase of 18 years.
36%, of which the pharmaceutical industry realized a net operating cash inflow of 24.
68 ppm, the pharmaceutical business realized a net operating cash inflow9.
USD 8.3 billion, stable cash flow on the industrial side supports the steady development of various businesses of the company.
Earnings forecast and investment rating Shanghai Pharmaceuticals is a domestic pharmaceutical industry and business leader. The coordinated development of industry and commerce has advantages. The first introduction of incentives will promote the company’s future innovation and development, and its long-term performance will grow steadily with high certainty.
It is expected that the net profit attributable to mothers for 2019-2021 will be 43.
3.3 billion, 48.
4 billion and 54.
4.7 billion, an annual increase of 11.
7% and 12.
5%, the corresponding return is 1.
64 and 1.
89 yuan, maintain BUY rating.
Risk warning: Kantarak’s business integration progress in China is expected in advance; the progress of the core diversity consistency evaluation is slower than expected; the performance of the outsourcing M & A target is not up to expectations, resulting in a significant decrease in goodwill;