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Sinopharm Holdings (000950): Strong growth in 2019H1 results, mixed reform of state-owned enterprises started

Sinopharm Holdings (000950): Strong growth in 2019H1 results, mixed reform of state-owned enterprises started
Event: The company recently received notification from the controlling shareholder Chongqing Pharmaceutical and Health Industry Co., Ltd. and the controlling shareholder of the health industry company Chongqing Chemical Medical Holdings (Group) Company that the Chemical Medical Holding Group intends to carry out mixed ownership reform of the health industry company. Dating strategic investors, the internal operating mechanism promotes optimization.Chemical Medical Holding Group intends to publicly solicit a strategic investor to transfer 49% equity of its holder’s health industry company at a low price of $ 41 billion.武汉夜网论坛 The intended transferee should be the military pharmaceutical business or the pharmaceutical industry or medical care.Health-related businesses need to be synergistic with the existing operations of the pharmaceutical and health industry companies, and the intent of the transferee’s controlling shareholder is the top 200 companies in the “2018 Top 500 Chinese Enterprises List” announced by the China Enterprise Federation, or China PharmaceuticalThe top 15 companies of the “Top 100 Companies in the Main Business Revenue of Pharmaceutical Wholesale Enterprises in 2018” announced by the Business Association. We believe that, while maintaining the replacement of Chongqing SASAC as the company’s controlling shareholder, the announcement of the public transfer of equity will further complement the company’s competition in the Southwest and promote the company’s business penetration throughout the country, activating the internal market-based operating mechanism of the Chemical Medical GroupTo promote the company’s health industry to become stronger and better. The performance of 2019H1 exceeded expectations, and the “4 + 7” opportunity was used to continue to enhance development momentum.The H1 company’s revenue in 2019 was 16.2 billion yuan, an increase of 33 year-on-year.8%, net profit attributable to mothers4.60,000 yuan, an increase of 49 in ten years.7%, the net profit of non-attributed mothers was realized4.3 ‰, an increase of 45 in ten years.6%, performance growth is very strong.The company adopted the “4 + 7” policy opportunity to continue to enhance the company’s growth momentum. In the first half of 2019, the company actively participated in the drug distribution work of the state-organized drug procurement pilot program. Among the 25 shortlisted products, the company achieved full coverage in Chongqing.At the same time, the Chengdu company in the pilot city also obtained some varieties distribution rights. The western region was vigorously cultivated, and the leader continued to improve.The company has been cultivating the western region for more than 60 years. In the core sales area of Chongqing, it has achieved full coverage of third-tier A and other medical institutions, basically covering secondary hospitals, and the coverage rate of second-tier and higher medical institutions in Chongqing has reached over 80%.The districts and counties in the city are shortlisted in 40 consortia, and the city’s medical institution coverage rate is in a leading position, and the concentration of the industry has continued to increase. As the leader in the commercial area in the western region, the company’s leapfrogging will continue to strengthen. Earnings forecasts and investment advice.It is estimated that the net profit attributable to mothers in 2019-2021 will be 8 respectively.9 billion, 10.800 million and 1.3 billion, covering for the first time, given a “buy” rating, with a target price of 7.65 yuan. Risk 杭州夜网论坛reminder: mixed improvement may be less than expected, and operating efficiency may decline significantly.