In-depth * Company * Puluo Pharmaceutical (000739): New orders from CDMO have been successively collected, which is favorable for the integrated development of APIs

The company continued to integrate and improve efficiency within the company, and continued to release profits after streamlining and optimizing its internal governance structure.

CDMO’s multiple orders in the field of veterinary drugs and contrast agents have successively landed.

The preparations sector has achieved breakthrough results in the domestic and foreign markets recently: the company’s first variety is deemed to have passed the consistency assessment and won the second round of national drug collective picking, and the first ANDA has also been approved.

In the future, the integration logic of the company’s drug substance preparations will be gradually realized, and the business will also enter a heavy volume period.

We are optimistic about the company’s long-term development, maintain a BUY rating and continue to recommend it.

  Key points of the formal rating Multiple projects of veterinary drugs and contrast media intermediates in the CDMO sector have landed one after another: The company regards CDMO as one of the key development areas in the future. It has already put reserves into commercialization and early clinical projects, and has gradually landed recently.

The company has announced a supply agreement with Shuo Teng, the world’s largest veterinary drug company, for more than three API products, and a strategic cooperation agreement with Bracco, a global leader in imaging diagnostic preparations, to break through two products.

A number of subsequent commercialization projects that are undergoing verification or confirmation are expected to land in the future, providing the company with strong growth momentum.

The early impact of CDMO affected by hepatitis C drugs has been cleared, and the sector has returned to the upward trajectory. It is expected that the CDMO business will grow rapidly in the next 3-5 years.

The first deemed to pass the consistency assessment of the variety Levetiracetam was awarded in the 25 alliance areas, and the integration road has been initially opened: in the second round of the collection, the Levetiracetam films were won by Plo and Jingxin Buildings.Among them, Prolog has a guaranteed minimum of 6 million pieces (14.4 million).

However, with reference to the implementation of centralized procurement last year and the guiding spirit of this year, the actual purchase volume should be much larger than this: last year, Jingxin Pharmaceutical’s Levetiracetam Tablets won 4 + 7, and achieved zero sales in the first half of this year.

48 ppm, an increase of 0 per year.

3.4 billion (4 + 7 of the previously agreed purchase amount corresponds to only 0.

15.5 billion); currently the original research UCB price4.

About 43 yuan is 85% higher than the winning bid price. Plow is expected to quickly occupy the market in the winning bidding area and other non-union regions. It is expected to exceed one billion US dollars in 2020.

The company’s profitability has continued to improve, and there is still room for integration and efficiency improvement: the company’s single-quarter revenue growth rate in the third quarter of 20南京夜网论坛19 was 16.

76%, the growth rate of net profit attributable to mothers was 73.

43%, based on the rapid growth in the first two quarters of 2019, further increased (up 1.

18 and 22.

82 units).

Single quarter gross margin and net profit margin were 31.

83% and 8.

08%, an increase of 1.

47 and 2.

64 units.

Since last year, the company has continued to consolidate and streamline its internal management structure, reduce redundant personnel departments, and merge similar variable systems. At the same time, the company has strengthened internal performance assessment, made meaningful breakthroughs and innovations, and achieved efficiency and profit from multiple dimensions.

  It is estimated that the company has entered a new high-speed growth period, and each section has growth potential.

At the same time, internal integration and optimization continued to improve profitability.

The concentration of the API industry continues to tighten, and the formulation and CDMO sectors are expected to contribute more increments in the future.

We expect net profit for 2019-2021 to be 5.



480,000 yuan, EPS 0.



80 yuan, currently corresponding to PE 28.

3 times.

Maintain Buy rating and continue to recommend.
  The main risks faced by the rating are the risks of fluctuations in raw material prices; exchange rate risks; environmental protection risks; the risk of failure in the development of preparations and the failure to sell as expected.