Shandong Medicine Glass (600529): China borosilicate glass penetration is the benefit of the trend medicine glass faucet
Medical glass faucet with steady growth in revenue.
The company’s revenue has grown steadily, and the revenue scale of Q1-3 in 2019 reached 21.
570,000 yuan, an increase of 12 in ten years.
At the same time, the company achieved net profit attributable to shareholders of the parent company in the first three quarters of 2019 of 3.
410,000 yuan, an increase of 30 in ten years.
Domestic medicinal glass is dominated by soda-lime and low-borosilicate silicon.
Conventional medicinal glass products are still mainly low-borosilicate and soda-lime glass. According to the Global Glass Network, the number of longitudinal medicinal glasses used in 2018 is currently around 30, of which the amount of borosilicate used in 2018 is 2.
2 nominal -2.
3 ounces, about 7% -8%.
Placed in low borosilicate glass, the medium to low borosilicate glass bottle has good thermal stability, high hardness, good abrasion resistance, long replacement, high conversion, and good chemical stability. Therefore, international neutral glass is recognized in the worldGlass is the preferred pharmaceutical packaging material, and in international standards, soda-lime glass replaces prescription drugs.
The consistency evaluation of generic drugs will promote the development of silicon 杭州桑拿 glass bottles in the north and the north, which will benefit the company.
The consistency evaluation of generic drugs is based on the principle that the quality and efficacy of the original drug are consistent with the original drug.
On October 15, 2019, the State Food and Drug Administration publicly solicited opinions on the “Technical Requirements for the Consistency Evaluation of the Quality and Efficacy of Generic Drugs for Chemical Injections” (Consultation Draft), which mentioned the quality and performance of packaging materials and containers used for injectionsIt should not be lower than the reference preparation to ensure that the quality of the drug is consistent with the reference preparation.
Therefore, we believe that better performance and the use of more borosilicate glass in the world are expected to continue to penetrate the gradual drug package industry.
The company’s existing borosilicate glass products are expected to benefit.
ROE continued to improve, and sales receipts were of good quality.
From the perspective of financial indicators, the company’s ROE continued to increase in 16-18, mainly due to the increase in net sales margin, and the asset turnover rate and equity multiplier were relatively stable.
The increase in the company’s net profit margin was mainly due to the continuous increase in gross profit margin, which increased from 32 in 2016.
81% increased to 37 in the first three quarters of 2019.
09%, an increase of 4.
Molded bottles with the largest revenue share in 2018, gross margins from 16 41.
16% increased to 48 in 18 years.
94%, an annual increase of 7.
Breaking through the company’s cost of molded bottles, from 16 to 18 years, the cost of molded bottles by item, and the proportion of revenue has declined, and according to the 2018 annual report, the company’s 2018 main raw material coal, soda ash and quartz sand prices were generallyThe growth trend, therefore, we believe that the decline in cost to revenue ratio is mainly because the company, as a domestic medical glass leader, has a complete product line and industrial chain layout and has generated scale advantages, which is one of the company’s important moats.
At the same time, the company’s sales receipts are of good quality. The net cash flow from the two-year operating activities are higher than the net profit. Compared with Zhengchuan, the sales receipts are better.
Earnings and estimates.
We expect the company’s EPS to be approximately 0 in 2019-2021.
19 yuan, comparable listed company’s 19-year average forecast PE is 32.
7 times, giving PE36 in 2019?
39 times, with a reasonable value range of 28.
42 yuan, given a “preliminary market” rating.
The advancement of consistency assessment is slower than expected risks, and China Boron Silicon Technology cannot break through the risks.