July 13,2020
In the evening of July 12, Yiling Pharmaceutical released the performance forecast for the first half year. In the first half of this year, the company achieved a net profit attributable to shareholders of 682 million to 728 million Yuan (USD 97.4 million to 104 million), an annual increase of 50%-60%, with basic earnings of 0.57 - 0.60 Yuan per share, and the strong growth momentum of the first quarter persists.
In 2019 Yiling Pharmaceutical achieved a net profit of 606.5 million Yuan. The net profit of the first half in this year already exceeds that of the whole year last year.
According to Yiling Pharmaceutical, there are two main reasons accounting for the surge in revenue: On the one hand, sales revenue of Lianhua Qingwen in the first half of this year saw a rapid growth compared with the same period last year. Lianhua Qingwen has also experienced a remarkable year-over-year rise in sales in the second quarter as the popularity and reputation of the product advance at home and abroad. On the other hand, the outbreak of COVID-19 was well contained in the second quarter, coupled with the fact that the company was granted the First Prize of China's National Science and Technology Progress, which has greatly enhanced the influence of the company on the market of cardio-cerebrovascular products. The sales revenue of these products achieved growth in the second quarter.
The Second Quarter Performance Exceeds Market Expectations
Yiling Pharmaceutical's performance forecast of the first-half of this year has attracted widespread attention in the market. Due to COVID-19, it was generally believed that the growth rate in the first quarter would serve as the peak of this year's growth. With the domestic outbreak well under control in the second quarter, the company's growth rate would go downward quarter by quarter, but according to the company's performance forecast of the first half year, the growth rate in the second quarter could very likely be surpassing that of the first quarter, which exceeds the market expectations.
The published statistics show that in the first quarter of this year, Yiling Pharmaceutical achieved an operating revenue of 2.334 billion Yuan, a year-on-year increase of 50.56%. The net profit attributed to shareholders was 437 million Yuan, up by 51.88% year-on-year.
"Judging from the trend of net profit of Yiling Pharmaceutical in recent years, it is estimated that the revenue growth rate in the second quarter should also be more than 50%, with which the company will further consolidate its leading position in the traditional Chinese medicine industry", said a brokerage analyst.
At the end of the first half year of 2020, the financial data company Wind released a list of "Top 500 Publicly Traded Chinese Companies for the First Half Year 2020". The statistics were collected until June 30. The entry threshold of the list this year was risen to 31.2 billion Yuan, an increase of 5.1 billion Yuan compared with 26.1 billion Yuan in the first quarter. Yiling Pharmaceutical made the list with a market value of 37.5 billion Yuan, an increase of 150% in market value, moving up 583 places in the ranking.
Cardiovascular Product Sales Growing Against the Market Trend
In addition to the Lianhua Qingwen boom, sales revenue of cardiovascular products of Yiling Pharmaceutical has also been climbing against the market trend in the second quarter, which is also worthy of attention. Although the coronavirus outbreak was already tamed during the second quarter, yet the number of outpatient visits to most hospitals hadn't return to the previous years' level in the same pe...
(All Rights Reserved)