Hailier (603639): The annual report and the quarterly report exceed the expected three fees due to the increase in the cost of the original drug

The company disclosed its 2018 annual report and 2019 first quarter report, which overall exceeded expectations.

Realized revenue of 21 in 2018.

910,000 yuan, an increase of 37 in ten years.

88%, net profit attributable to mother 3.

6.7 billion, an increase of 28 in ten years.

45%.

In Q1 2019, it achieved revenue of 6.

20,000 yuan, an increase of 12 in ten years.

91%, net profit attributable to mother is 0.

68ppm, a ten-year average of 24.

32%.

Net profit in the fourth quarter of 2018 and the first quarter of 19 exceeded our expectations, mainly due to operating costs, three expenses, and increased impairment.

Operating cash flow in 2018 was 2.

44 trillion US dollars, a significant improvement, Q1 2019 single quarter is -0.

62 megabytes, basically flat for one year, and the cash flow as a whole is in a reasonable range.

Management expenses have increased significantly each year, and sales expenses are in an expanding state.

Sales, management (including R & D), and financial costs for 2018 were 1.

28, 2.

03, -0.

30 trillion, +26 change per year.

4%, +70

6%, -215%, the management costs increased significantly, mainly due to share payments, research and development expansion growth and reorganization, and gradually three fee expenses13.

76%, down by 1 every year.

77 pct, of which the exchange income contribution contributed significantly.

2019Q1 sales, management (including R & D), financial expenses are 0.

42, 0.

51, 0.

11 ppm with +43 change over the year.

8%, +, 68.

5%, -60.

2%, mainly 南京夜网论坛 due to the expansion of sales team spending, equity payments and R & D investment.

In addition, the asset impairment in the single quarters of 18Q4 and 19Q1 were zero.

12, 0.

140,000 yuan, a significant increase in ten years.

The increase in total revenue in 1Q1 was attributable to the increase in preparation revenue, but the decline in profitability.

In the formulation, the insecticide / fungicide / herbicide is preset to 1, respectively.

85, 1.

51, 0.
52 trillion, change +0 each year.
51, +0.

67, -0.

30,000 yuan, a total increase of 1.

1.5 billion, the main contribution to total revenue growth.

But at the same time operating costs reached 4.

10,000 yuan, an increase of 20 in ten years.

37%, with a combined gross profit margin of 33.

4%, down 4 each year.

1 pct.

In the first quarter, the insecticide (imidacloprid + cationic insects) was set to 1.

0.6 billion, down by 0 every year.

5.7 billion US dollars, because volume and price fell, sales volume decreased by 29%, unit price decreased by 14%, according to operating data, the main procurement intermediate costs dominate, so the increase in operating costs may mainly come from the rise in the price of raw materials purchased outside.
Sales of pyraclostrobin improved, prothioconazole was under construction, and the fungicide business was gradually expanding.

The sales volume of pyrrolizole in 18Q4 was 54 tons, and the sales volume in 19Q1 reached 220 tons, which is a significant increase from the previous month, and is expected to record better sales growth.

The 2018 annual report revealed that the prothioconazole original drug project is under construction. It is expected to be put into production in 2019, and the fungicide will become the main growth point of performance in the future.

At the same time, the company is expanding 3500 tons of second- and third-generation neonicotinoid insecticides, combined with the first-generation products, and gradually creating a first-class neonicotinoid insecticide leader. While the product is rich, the industry scale is increasing.

Temporarily maintain earnings forecasts and ratings.

Currently the projects under construction can support the company’s growth for 2-3 years, and we judge that Qingdao Pingdu Base can support at least 3-5 years of growth.

Temporarily maintain forecasts for 19-20 years eps3.

16, 3.

84 yuan, increase forecast EPS4 in 2021.

65 yuan, the current sustainable corresponding pe is 9X / 8X / 6X, maintain “Buy” rating.

Risk warning: The prices of self-produced crude drugs have fallen, the prices of imported crude drugs have risen, and projects under construction have been put into operation beyond expectations.