Livzon Group (000513) Annual Report Comments: Steady Performance Growth and Variety R & D Progress

Livzon Group (000513) Annual Report Comments: Steady Performance Growth and Variety R & D Progress

Investment Highlights Recently, Livzon Group has published its 2018 annual report, which states that the company has achieved operating income of 88.

61 ppm, a 10-year increase3.

86%, net profit attributable to shareholders of listed companies10.

82 trillion, down 75 a year.

56%, net profit after deduction to mother 9.

47 ppm, an increase of 15 in ten years.


  Profit forecast: We believe that the company will gradually build anti-tumor, mental, digestive and other specialty product lines based on the existing areas of reproductive specialty advantages, improve the product echelon, new products such as ilaprazole, leuprolide, etc.The high-end specialty drug, ilaprazole is expected to increase its volume quickly after entering the national medical insurance directory, and has also expanded its layout in the field of monoclonal antibodies.

As a specialized pharmaceutical company with a good product line echelon, the company’s performance 北京夜网 growth promotes stable and rapid growth under the circumstances that the incentive mechanism is streamlined and the potential new products enter the volume cycle after the tender is opened.

At the same time, the company conducts technical cooperation with overseas countries, deploys precision medicine, and establishes the company’s synergistic competitive advantage in “drug therapy + genetic recombination diagnosis”. The future extensional development is still worth looking forward to.

The land transfer income also provides the company with capital reserves for its future operation in the capital market, and equity incentives help the company to fully release its performance.

We adjust the company’s profit forecast and expect EPS to be 1 in 2019-2021.

72, 1.

94, 2.

19 yuan, corresponding to the closing price on March 28, 2019, its dynamic PE is 20X, 18X and 16 times respectively, maintaining the “prudent increase” rating.

  Risk reminder: The price reduction of Shenqi Fuzheng injection has a higher-than-expected impact, and monoclonal antibody research and development has fallen short of expectations.