A number of API companies half-yearly report pre-happy Golden age is coming again?

Entering August, the semi-annual report disclosure entered an intensive release period. Brother Technology, the largest producer of vitamin K3, recently disclosed its 2017 half-year results, showing that revenue in the first half of the year was 654 million yuan, up 28.6% YoY, and net profit was 154 million yuan, up 129.4% YoY. In the first half of the year, the company's vitamin products revenue was 494 million yuan, up 37.11% YoY. In fact, this is the third year in a row that the company has maintained a net profit growth of more than 100%.
's bright half-yearly report is just the tip of the iceberg of the recent strong performance of API companies. From the fundamental point of view, at present, most of the API enterprises with market pricing power have been discontinued or limited production, THE price surge will continue into the second half of the year, which also directly promoted the performance of the relevant API companies.Soil growth behind the hidden worries
in the published semi-annual report or forecast, Northeast Pharmaceuticals is currently at the top of the growth rate list, is expected to achieve a net profit of 38 million yuan to 41 million yuan in the first half of the year, an increase of 1106% to 1201 percent year-on-year. The company said the price of vitamin C, the leading product, rose compared with a year earlier.
Huahai Pharmaceuticals API business benefited from Pribarin, Zuo Yilasitan and other characteristics of RAW drug discharge, API revenue and gross margin increased, Shatan class with generic drug release capacity release, scale expansion, scale effect is obvious. The API business maintained solid growth in the first half of the year.
addition, Garden Bio also forecast a significant increase in first-half results. First-half net profit is expected to be RMB73 million to RMB77 million, up 364.1% to 389.5% YoY. This was mainly due to a significant increase in sales of cholesterol and 25-hydroxyvitamin D3 origin from the company's initial public offering.
Jincheng Pharmaceuticals' 2017 half-year results showed a profit of 112.08 million yuan to 134.49 million yuan, an increase of 50% to 80% over the same period last year. During the reporting period, the main business maintained steady growth, cephalosporine pharmaceutical intermediates major product revenue growth, profit increased.
Pharmaceuticals expects first-half net profit of 7.5654 million yuan to 89.409 million yuan, an increase of 10% to 30%. The company said that operating results in the first half of this year increased steadily year-on-year, mainly due to the continued rise in the unit price of heparin raw materials sales, resulting in an increase in overall revenue and gross margin year-on-year.
addition, Xinhua Pharmaceutical's first-half net profit increased 100% to 150% year-on-year, with a slight increase in Jinweida, Xin and Cheng and Yifan Pharmaceuticals.
last year, some of the raw materials price surge attracted the attention of the industry and the market, but also to improve the profitability of related enterprises. Moreover, China's API supply side reform and transformation and upgrading results gradually appear, customized API and intermediates and other new industries continue to rise, enterprises also pay more attention to research and development and process innovation. "In the interview, some experts reminded that hidden behind the beautiful numbers of semi-annual reports, the situation facing the API industry is still grim.
Zhu Renzong, Deputy Secretary-General of the China Medical and Health Products Import and Export Chamber of Commerce, said supply-side reform and transformation and upgrading is a long-term process, not a one-off. "The current situation is that the domestic API industry overcapacity situation is still serious, which can be seen from China's average export price of RAW drugs for three consecutive years. In the first half of this year, China's exports of raw materials increased by 9.89 percent, while the average export price fell by 1.56 percent. Whether the API industry ushered in a golden age remains to be seen. " this round of price increases or difficult to last
interview, there are experts in the API industry analysis that the domestic environmental protection cut-off caused by the reduction in supply, is one of the important reasons for the rise in the price of some RAW drugs. From this point can also be seen, China's raw materials "inside and outside the war" situation is very common, fewer domestic competitors, export prices on the high water.
In the context of rising environmental protection, labor and energy costs, China's API export prices should rise to ensure the profitability and viability of the industry, but in fact in recent years, most of the API export prices fell again and again, corporate profit margins were squeezed.
" therefore, only by the domestic environmental protection and high-pressure policy caused by the temporary suspension of production caused by the rise in the price of RAW drugs and related business performance growth, is not a sustainable benign growth. Zhu Said that the international market supply of major price-increased varieties such as vitamin A, vitamin E and sucralose was also affected by the discontinuation or relocation of suppliers such as DSM in the Netherlands, BASF in Germany and the Thales Singapore plant in the United Kingdom. Once the domestic production-limiting enterprises environmental relocation and transformation completed, the above-mentioned international suppliers to resume production, coupled with the United States, India and other countries advocating manufacturing by policies, price increases and other attractions to produce new suppliers, international production capacity will gradually resume. This round of price increases is not expected to last long.the downward trend of the average export price slowed
in the first half of this year, China's API exports reached 13.981 billion U.S. dollars, an increase of 8.18 percent year-on-year, continuing the trend of volume increase and decrease since last year.
Specifically, the export performance of bulk raw material drugs is different, in addition to vitamins, anti-heat analgesics to maintain the momentum of price increases, amino glycosides, sulfonamide prices stopped falling and rebounded, amino acids, penicillin, hormone prices continued to decline, but the decline narrowed, large ring esters, cephalosporine prices have fallen.
For the second half of the trend of the API industry, Zhu Renzong analysis predicted that "China's API will continue to maintain the momentum of growth, in vitamins, anti-heat analgesy, etc. , driven by the decline in the average export price trend will be slowed." In
reporter was informed that the price increase of some varieties has little impact on its sales and exports. The reason is that pharmaceutical products, including raw materials, unlike general commodities, the international market demand has a strong rigidity. Therefore, the increase or decrease of china's API export volume is mainly affected by the international market demand and changes in international production capacity, while the impact of export prices is small, there is not much correlation between the two prices.
such as vitamin-based raw materials, exports last year showed a rise in volume prices, the first half of this year is a volume reduction increase. Therefore, from the industry level, for China has obvious production scale advantages and price advantages of raw materials and drugs, enterprises should avoid a price war, as long as the maintenance of export prices in a reasonable range, the overall export volume will not change much, which is not only beneficial to the development of enterprises themselves, but also beneficial to the sustainable development of the industry. (Medical Economics)