Depth-Company-Tonghua Dongbao (600867): Insulin sales gradually returning to lifting sugar product line layout will enter the harvest period

Depth * Company * Tonghua Dongbao (600867): Insulin sales gradually returns to the lifting sugar product line layout will enter the harvest period

The company released the first quarter performance report: report realized revenue7.

1.4 billion (-0.

70%), net profit attributable to mother 2.

7.4 billion (-0.

06%), net of non-attributed net profit 2.

7 billion (+0.


Net cash flow from operating activities.

9.1 billion (+130.

(96%) has increased, the impact of destocking on product sales has changed seasonally, and the second-generation insulin has resumed positive growth.

The company’s third-generation insulin glargine is expected to be approved within the year. In addition, other third- and fourth-generation insulin products are also planned. The oral hypoglycemic drug sitagliptin dimethylbisdiol has also been reported to be produced. It is expected to use the advantages of existing channels to rapidly increase its volume in the future.

We are optimistic that the company will become a leader in the field of diabetes management in the future. We maintain our overweight rating and continue to recommend it.

Key points of the official rating The core business maintained positive growth, and real estate and proprietary Chinese medicine and other businesses generated negative drag: the company’s first-quarter revenue and profit were basically the same as the same period last year, of which the parent company’s revenue was 6.

7.1 billion increase 5.

07%, net profit 2.

60 billion increase1.

02%, the impact of the adjustment of the budget inventory strategy decreases quarter by quarter, and is expected to return to single digit growth in the first quarter.

Net cash flow from operations increased significantly, with a ratio of 54 to sales revenue.

7% is far higher than last year’s level, mainly due to the increase in insulin sales and the decrease in materials.

Inventories continued to decrease from the end of the year8.

4%, to maintain the inventory of about one month, after the inventory adjustment, the second generation is expected to grow to return to a reasonable and stable growth.

Profit margin has improved significantly: gross profit margin was 75 in 19Q1.

0%, previous and MoM improvement (1.

89pp and 1.

54pp); net interest rate 38.

27%, which has been increased by 0 in the past and the previous month.

30pp and 15.


The gross profit of the parent company decreased slightly, which is estimated to be related to price adjustments in some regions.

The overall period expense ratio is 30.

86%, an increase of 1 from last year.

67 units.

Of which selling expenses are 21.

94% (+1.

33pp); management costs fall by 8 per year.

02%, the expense ratio is reduced by 0.
64pp; financial expenses 0.

The 91% increase was mainly due to the short-term loan interest of banks.
The pipeline layout in the future is worth looking forward to: In the company’s third-generation insulin, insulin glargine, which is accelerating, is waiting for on-site inspection and is expected to be approved for listing in Q3 this year; insulin aspart has been reported for production and is expected to be approved within this year; aspart 30 and 50 are in phase IIIclinical.

Fourth-generation insulin partners with Adocia.

Liraglutide has also entered phase III.

Sitagliptin metformin has been reported recently.

The follow-up product line layout is complete, and it is expected to become a leading product line company in the field of sugar reduction.

We estimate that the net profit for 2019-2021 will be 9 respectively.



50,000 yuan, corresponding to EPS0.



69 yuan, the current sustainable corresponding price-earnings ratio is 31.



4 times.

We are 北京桑拿 optimistic about the company’s long-term development, maintain an overweight rating, and continue to recommend it.

The main risks faced by the rating are the risks that the progress of new products is not up to expectations; the risk of intensified competition for second-generation insulin products;

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