Hualan Biological (002007): Reproductive vaccine for blood product inflection point performs well

Event: The company released its 2018 annual report and achieved revenue of 32.

1.7 billion, an annual growth of 35.

84%; net profit attributable to mother 11.

4 billion, an annual increase of 38.

83%; Yield 1.

22 yuan, performance in line with expectations.

Key points of investment: The performance has increased significantly, the vaccine business has performed well, and the performance of the company has increased significantly. The four quarters of revenue growth were 4.

44%, 34.

63%, 27.

77%, 68.

24%, the growth rate of net profit attributable to mothers was -18.

8%, 39.

7%, 63.

15%, 88.

34%.

In terms of business: 1) Blood products contribute revenue24.

0.8 billion yuan (+15.

89%), of which albumin and static propylene were 10 respectively.

2.5 billion (+11.

45%), 6.

0.4 billion (-10.

77%), coagulation factor, total income of exempt products7.

7.9 billion (+61.

91%), showing outstanding performance; 2) Revenue from vaccine business.

9.8 billion (+183.

92%), earnings growth of vaccine subsidiaries, contributing to net profit2.

700 million.

The inflection point of blood products has improved, and vaccines have contributed to performance flexibility. Monoclonal antibodies have helped long-term development. The company’s receivable turnover and inventory turnover have improved significantly. It is believed that after the sales adjustment, the inflection point of blood products is clear.

In 2018, the company issued a total of 852 influenza vaccines.

260,000 pieces / bottle (four priced 5.12 million), accounting for 52 of the country’s total.

82%, considering that the quadrivalent influenza vaccine was only approved in mid-2018, and the domestic infection rate has decreased. It is believed that the number of batches of tetravalent influenza vaccines issued in 2019 may exceed 10 million under the catalysis of the influenza epidemic.The continuous advancement of meningococcal polysaccharide vaccine and rabies vaccine will increase thickening performance.

A total of 7 monoclonal antibodies of Hualan Gene have obtained clinical trial approvals, of which adalimumab, trastuzumab, rituximab, and bevacizumab are in phase III clinical trials to promote new growth in the company’s performance.point.
天津夜网 Earnings forecast and rating is expected to be 1 in 19/20/21 EPS.

53/1.

86/2.

17 yuan, corresponding to the current expected PE of 29/24/20, the company’s blood products business is stable, the vaccine sector brings performance flexibility, and maintain a “recommended” rating.

Risk Tips 1. Sales of blood products are less than expected; 2. Flu vaccine vaccination is less than expected