Pianzaiyu (600436) Company Comments: Performance in line with expectations Core products achieve high growth in a single quarter

Pianzaiyu (600436) Company Comments: Performance in line with expectations Core products achieve high growth in a single quarter

Brief evaluation of performance The company released three quarterly reports today, and achieved a total of 43 revenues in the first three quarters.

4.2 billion, net profit attributable to mother 11.

09 million yuan, net of non-attributed net profit11.

03 trillion, the growth rate was 21.

07%, 20.

56%, 21.

88%.

The company achieved revenue in the third quarter alone14.

4.7 billion, net profit attributable to mother 3.

6.3 billion, net of non-attributed net profit3.

5.8 billion, a growth rate of 22.

44%, 19.

87%, 19.

41%.

Business Analysis Core Product Pien Tze Huang: The high growth rate achieved in the single quarter quarter is calculated based on the use of liver disease drugs, and the core product revenue growth rate in the first three quarters was 23.

74%, achieving solid growth.

In the first three quarters of 2019, the revenue from liver disease medication was 6 respectively.

3.4 billion, 5.

2.2 billion, 5.

960,000 yuan, a growth rate of 16 each year last year.

20%, 14.

73%, 43.

52%.

The company’s growth rate of liver disease medications decreased in the fourth quarter of 2018 (The growth rate of liver disease medications decreased in the fourth quarter of 2018.

4.6 billion, 4.

5.5 billion, 4.

1.5 billion, 3.

810,000 yuan), the third quarter of 2019 achieved high growth at a low base.

The company increased investment in scientific research and carried out the secondary development of the main product. In September 2019, the clinical research results of flaked tadpoles for liver cancer were released. Clinical research showed that flaked tadpoles have obvious advantages in reducing pain, stabilizing liver function, and improving clinical symptomseffect.

In terms of channels: At present, the company has nearly 200 museums (including 2 museums) to enhance the vitality of the terminal.

At present, the penetration rate of experience halls in high-speed rail stations, airports and other places further increases the space, and the further deployment of future experience halls will help strengthen the company’s product accessibility and brand awareness.

Circulation and daily chemical sector: steady growth of circulation sector: revenue of circulation sector for the first three quarters of 20.

68 ppm, a 10-year growth rate of 18.

43%; the daily necessities and cosmetics industry maintained rapid growth: the company’s daily chemical revenue4.

51 ppm, a ten-year growth rate of 33.

14%, mainly due to the sales growth of the subsidiary Fujian Pianzai Cosmetics Co., Ltd. and Zhangzhou Pianzai Shanghai Shanghai Jiahua Oral Care Co., 返回码: 500 网站打不开?重查 Ltd. The toothpaste business turned a profit for the first time in the semi-annual report in 2019.

Earnings forecast and investment recommendations We expect EPS for 2019-2021 to be 2.

36/2.91/3.

58 yuan, the current sustainable corresponding PE is 47/38/30 times, maintaining the “overweight” level.

Risks suggest that the rapid growth of sales leads to insufficient supply of musk raw materials; artificially preserved musk is lower than expected; channel development of experience museums exceeds expectations; brand launch effects exceed expectations; high estimated risks.