by winston » Mon May 06, 2019 12:02 pm
not vested
SINO BIOPHARM(1177)
Analysis:
The Group's business encompasses a fully integrated chain which spans from R&D to manufacture and sales of pharmaceutical products, covering a vast array of biopharmaceutical, chemical and modernized Chinese medicines.
The Group announced 2018 revenue of RMB 20.89bn (+41% YoY) and net profit of RMB 9.04bn (+317% YoY).
Excluding one-off gains from the acquisition of a 24% stake in Beijing Tide in 2018, adjusted net profit reached RMB 2.84bn (+37% YoY), in line with market consensus.
Sales of oncology drugs reached RMB 3.19bn, occupying 15.3% of total revenue and increasing 99.6% YoY, mainly driven by sales contribution from Fukewei (anlotinib capsule), and it is expected to maintain a rapid growth in 2019.
In 2018, the Group's R&D expenses increased 31% YoY to RMB 2.09bn, R&D expense-to-revenue ratio declined 0.8ppts YoY to 10.0%.
The number of products under development is 497, and 18 drugs were approved for production in 2018.
Considering its heavy investment in R&D and with continuous genetic and innovative drugs marketed, it will benefit the Group's medium and long term development.
Strategy:
Buy-in Price: $7.50, Target Price: $8.50, Cut Loss Price: $7.10
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"