Tiantan Biological (600161): Overall performance maintained steady growth
This report reads: The overall performance is in line with expectations, and the integration effect is expected to gradually emerge.
Investment points: Maintain the company’s overweight rating.
After the company has completed the acquisition and integration of a series of blood product assets in the past two years, it has become the largest blood product leader in China in terms of harvested leaves.
Maintain 2019-2020 EPS forecast at 0.
82 yuan, EPS is expected to be 1 in 2021.
04 yuan, the current industry’s average PE is about 30X in 2019. Considering the obvious advantages of the company’s blood product harvesting paddles, it can enjoy the estimated premium, raise the target price to 30 yuan (corresponding to PE44X in 2019), and maintain the overweight level.
Performance is in line with expectations.
The company released its 2018 annual report and achieved operating income29.
31 ppm, an increase of 18 in ten years.
03%, net profit attributable to mother 5.
09 million yuan, a year of 56.
57%, net of non-attributed net profit5.
0.6 million yuan, an increase of 22 in ten years.
19%, as expected.
Revenue from leaf collection and blood products maintained steady growth.
The company’s blood products business in 2018 achieved operating income29.
31 ppm, a steady increase of 31 per year.
32%, the blood products business segment attributed to the mother net profit5.
09 million yuan, an increase of 16 in ten years.
The company has 57 single plasma collection stations in 13 provinces across the country (among which, there are 49 plasma mining stations). In 2018, the volume of plasma collection was about 1568 tons, a record high and an increase over the same period of the previous year.
The discounted sales volume of the main products is albumin 372.
870,000 bottles, static 287.
290,000 bottles, 109 were broken.
250,000 bottles, 51 free.
940 thousand bottles, 25 people free.
Expect efficiency improvement after asset integration.
The overall profitability level of the company’s blood products business has relatively decreased (only 25 in 2018.
1%). In 2018, the company has established multiple platforms such as R & D center, blood source management center, production management center, etc., and 合肥夜网 actively improved management efficiency in multiple dimensions. It is expected that the level of future profitability will gradually increase.
Risk warning: lower than expected business integration