I want to renew
2019/12/31 15:03:04 Source: CICC 2019/12/31 15:03:04
On December 30, 2019, we
Due to rising raw material prices, overseas retail prices rose to 890 Hong Kong dollars per pill. On December 24,
Looking forward to the gradual recovery of the Hong Kong retail market. We believe the company's revenue in Hong Kong may be under pressure due to the shortened business hours of retail pharmacies in 2H19. However, due to the high incidence of cardiovascular and cerebrovascular diseases in Hong Kong and the gradual rejuvenation of patients, we believe that Hong Kong residents' demand for An Gong Bull Bull Pill is still strong.
Others: 1) The company believes that the sales of broken Ganoderma lucidum spore powder in 2019 are in line with the company's full-year expectations, and it will actively explore more sales channels in the future. 2) We believe
Taking into account the poor performance of Hong Kong's retail market in the second half of 2019, we lowered our EPS forecast for 19/20 by 9% / 9% to HK $ 0.72 and 0.83, corresponding to a year-on-year growth of 4.1% and 15.0%. The current stock price corresponds to a 19/20 P / E ratio of 15.9x / 13.8x. In view of the company's increase in core product prices, we maintain our “Outperform” rating and maintain a target price of HK $ 16.20, corresponding to a 19/20 P / E ratio of 22.5x / 19.5x, which is 41% higher than the current stock price.
Demand in Hong Kong and the Mainland fell; sales management expenses increased.