Shanghai Pharmaceuticals (601607): Endogenous end stable growth impairment provision affects current performance

Investment Highlights Recently, Shanghai Pharmaceuticals released the 2018 annual report results, reporting that the two companies achieved operating income of 1,590.

8.4 billion, an annual increase of 21.

58%; net profit attributable to mother 38.

81 ppm, an increase of 10 in ten years.

24%; net profit attributable to non-attributed mothers was 26.

52 ppm, a decrease of 6 per year.

80%; EPS is 1.

37 yuan.

Profit forecast: Shanghai Pharmaceuticals is a national leading enterprise integrating 南京夜网 business and industry.

In industry, the product structure is gradually adjusted, the marketing system is further improved, and the internal growth rate is gradually increased; the incremental change in consistency evaluation is gradually reduced, and it has developed into a rich level of continuous development, providing continuous power for the company’s future development.

In terms of business, the adjustment of the two-vote system is nearing completion, the distribution territory continues to expand, and the innovative retail business is developing rapidly. The acquisition of Kande Le further improves the company’s existing system.

In 2019, we expect the company’s industrial sector profit growth rate is still expected to remain above 15%, and the commercial sector is expected to rebound to about 10%.

In addition, with a stable base, we expect the company’s joint venture revenue to maintain steady growth in 2019.

We adjust our profit forecast and expect the EPS for 2019-2021 to be 1.

50, 1.

67, 1.

87 yuan, corresponding to PE of 14, 12, and 11 times per day on March 29, 2019, maintaining the “prudent increase” 四川耍耍网 rating.

Risk Warning: The growth rate of the industrial sector is lower than expected; R & D expenditures exceed expectations; Investment income growth exceeds expectations; Goodwill impairment risk