标题：Tonghua Dongbao Pharmaceutical2015 Preliminary Results Comments：In line 2015 preliminary results and development of its CDM platform well underway
发布日期：2016-01-20 10:59:19
内容： Event: Tonghua Dongbao Pharmaceutical (the Company or TonghuaDongbao) announced preliminary 2015 results, highlighting 70-80%YoY growth in its 2015 net profit attributable to shareholders of theListCo, which was in line with our expectations. Comments: The good performance for 2015, on par with that for 3Q2015, is thanksto: 1) growth in insulin sales revenue (+20%-25% YoY) plusimproved gross margin and lower expense ratios; 2) increased netprofit due to decreased VAT; and 3) increased investment gainsfrom the disposal of a stake in Tonghua Grape Wine (600365). In4Q2015 alone, the Company continued posting solid profit growth, inour estimates, thanks to good control over expenses, as, in the past, itusually incurred relatively high marketing expenses in 4Qs. We forecast2015 profit growth fell in the range of 50%-55% YoY, excludingnon-recurring items. Highly visible organic net profit growth of +30% in the future. As anindispensable medicine in the treatment of diabetes, insulin has a largeuser base. Given this, coupled with: 1) the Companyˇs strong marketingregime in counties and lower-tier markets for its second-generation ofinsulin; and 2) sound competitive landscape, we forecast its insulinsales revenue growing over 20% in the future. Results from recenttenders shows insulin prices have been well-supported. Furthermore,40R can replace 30R in some provinces or cities, offsetting pressurefrom price cuts. In addition, the ongoing implementation of a tiered(patient) referral system will increase diabetes diagnosis and treatmentin low-tiered markets as a proportion of total and this is a long termpositive for the Companyˇs products. Became an exclusive distributor of Ypsomed produced needles forinsulin pens and acquired a stake in Bionime (a glucose meterproducer). On Jan 5 2016, the Company signed an agreement withYpsomed for exclusive distribution of the needles for its insulin pens. Asper the agreement, from Jan 1st 2016, Ypsomed has authorizedTonghua Dongbao as the sole distributor in China of its new type ofinsulin delivery needles. On Jan 12 2016, it completed acquisition of afurther stake in glucose meter producer, Bionime, bringing itsshareholding up to 18.91% to become both the largest shareholder ofBionmine and general sales agent for Bionimeˇs series of glucosemonitoring products (meters, consumables, etc.). By obtaining premiumconsumable and glucose meter resources, the Company hasproceeded steadily with the development of its diabetes managementplatform.
发布日期：2016-01-20 10:59:19
内容： Event: Tonghua Dongbao Pharmaceutical (the Company or TonghuaDongbao) announced preliminary 2015 results, highlighting 70-80%YoY growth in its 2015 net profit attributable to shareholders of theListCo, which was in line with our expectations. Comments: The good performance for 2015, on par with that for 3Q2015, is thanksto: 1) growth in insulin sales revenue (+20%-25% YoY) plusimproved gross margin and lower expense ratios; 2) increased netprofit due to decreased VAT; and 3) increased investment gainsfrom the disposal of a stake in Tonghua Grape Wine (600365). In4Q2015 alone, the Company continued posting solid profit growth, inour estimates, thanks to good control over expenses, as, in the past, itusually incurred relatively high marketing expenses in 4Qs. We forecast2015 profit growth fell in the range of 50%-55% YoY, excludingnon-recurring items. Highly visible organic net profit growth of +30% in the future. As anindispensable medicine in the treatment of diabetes, insulin has a largeuser base. Given this, coupled with: 1) the Companyˇs strong marketingregime in counties and lower-tier markets for its second-generation ofinsulin; and 2) sound competitive landscape, we forecast its insulinsales revenue growing over 20% in the future. Results from recenttenders shows insulin prices have been well-supported. Furthermore,40R can replace 30R in some provinces or cities, offsetting pressurefrom price cuts. In addition, the ongoing implementation of a tiered(patient) referral system will increase diabetes diagnosis and treatmentin low-tiered markets as a proportion of total and this is a long termpositive for the Companyˇs products. Became an exclusive distributor of Ypsomed produced needles forinsulin pens and acquired a stake in Bionime (a glucose meterproducer). On Jan 5 2016, the Company signed an agreement withYpsomed for exclusive distribution of the needles for its insulin pens. Asper the agreement, from Jan 1st 2016, Ypsomed has authorizedTonghua Dongbao as the sole distributor in China of its new type ofinsulin delivery needles. On Jan 12 2016, it completed acquisition of afurther stake in glucose meter producer, Bionime, bringing itsshareholding up to 18.91% to become both the largest shareholder ofBionmine and general sales agent for Bionimeˇs series of glucosemonitoring products (meters, consumables, etc.). By obtaining premiumconsumable and glucose meter resources, the Company hasproceeded steadily with the development of its diabetes managementplatform.
