Haixiang Pharmaceutical (002099) Research Bulletin: Development of Dual-Dye and Pharmaceutical Industry

Haixiang Pharmaceutical (002099) Research Bulletin: Development of Dual-Dye and Pharmaceutical Industry

I. Analysis and judgment of two-wheel drive of dye medicine and continuous improvement of profitability The company’s main business sector can be divided into two categories: medicine and dyes. The pharmaceutical business mainly involves the production and sales of specialty intermediates, APIs and related preparations, and also provides international pharmaceutical CDMO./ CMO professional services; Dye business includes environmentally friendly reactive dyes, dye intermediates and pigment intermediates, among which reactive brilliant blue KN-R dyes are bonded products.

Benefiting from the sharp increase in dye prices since the middle of last year, the export volume of clindamycin exceeded the sharp increase and the exchange income increased. In 2018, the company achieved revenue of 27.

190,000 yuan (+17.

74%), of which the pharmaceutical sector was 14.

4.2 billion (+12 year-on-year.

35%), the dye plate 12.

500,000 yuan (+23 compared with the same period last year).

93%); realized net profit attributable to mother 6.

0.5 billion (YOY + 76.


At present, the two major business segments of the company go hand in hand and make joint efforts. In the first quarter, the sales volume of clindamycin chloride products in the international market increased significantly. Intermediate substitution of reactive dyes interfered with future price increases. Performance forecast shows that 2019Q1 willAchieve zero parent net profit1.


1 ppm, an increase of 324 per year.



  The supply of intermediates has suffered, and the price of dyes is expected to increase. As for the endogenous growth of the business to accelerate dyes, the company uses benzene sulfonic acid reactive dyes as its main products. After the expansion of its production in 2017, it has the output of reactive brilliant blue KN-R.

5 Every year, output increases by 87.

5%, occupying more than 50% of the global market share, is in the absolute leading position in this segment, and has constant pricing power.

After the Xiangshui incident, the supply of dyes and intermediates has penetrated and impacted, and the nation’s safety and environmental protection have been continuously promoted. The backward production capacity has been 深圳桑拿网 cleared. In the future, the supply of the entire industrial chain will continue to tighten. There is a certain price increase expectation for dye products.The key intermediate self-supplied integrated production enterprises will fully benefit from rising product prices and increasing market share.

At the same time, the company will adapt to the dye industry upgrade trend, from a single anthraquinone series of active blue dye products to formazan active blue, fluorine-containing active blue and more than ten kinds of active, acidic and other efficient, differentiated uses of new dye productsExtension, at present, Taizhou advances and Taizhou Zhengang has an annual output of 3.

4 The initial reactive dye industry upgrade and supporting projects are accelerating construction, and will continue to contribute profits in the next three years.

The multi-variety development model 南京桑拿网 of the company’s dye sector has taken shape. In the future, it will accelerate the construction of existing projects to achieve endogenous growth.

  The pharmaceutical product structure is optimized, new projects are progressing smoothly, and international cooperation is expanding in an orderly manner. The company’s main military special intermediates, APIs and related preparations are produced and sold. The products cover anti-infection, vascular, mental illness, metabolism and immunity.Classes, etc.

Among them, the Penan series has formed a 4-AA basis covering the downstream high-level middle, a variety of Penan raw material layouts, and the gross profit margin has continued to increase; the clindamycin series is in a leading position in the world, and the market demand has increased steadily. At presentIt is actively extending downstream to enhance the added value of products; the florfenicol series has absolute advantages in scale, quality and technology.

In the end, the company’s pharmaceutical segment revenue grew steadily, the product structure continued to optimize, profitability gradually increased, the bulk drug and intermediate CMO center was expanded, the annual production of 3 billion tablets (granules) of solid preparations, technical transformation, and comprehensive pharmaceutical research and development centers also progressedVery well.

As an enterprise that has initially carried out international CMO business internally, the company has maintained good cooperative relations with German BI, American Pfizer and other international pharmaceutical giants. Some new international cooperation has been docked in an orderly manner at the same time and gradually landed.

  Second, the investment proposal predicts that the company will earn 0 in 2019-2021.

69 yuan, 0.

85 yuan, 1.

02 yuan, corresponding to PE is 13 times, 11 times, 9 times.

The reference SW chemical raw materials sector currently averages 26.

5 times PE level. Considering the company’s expected price of dye products and the continuous release of new project capacity, the pharmaceutical business’s profit has steadily increased, covering for the first time, and a “recommended” rating is given.

  Third, risk warnings: downside risks to the price of dye products; lower-than-expected start-up of new projects; safety and environmental protection production risks.

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