Under the outbreak of China's medicine semi-annual report: revenue only medical device growth Murray net profit super Hengrui.

How much impact has the epidemic had on China's pharmaceutical industry? What is the impact of the promotion of national collection on generic drug companies? A-share listing of 346 pharmaceutical and biological enterprises issued the first half of 2020 annual report to answer the above questions, the first time the new Kangjie made a comb.
the industry as a whole, net profit rose 15.04 percent and medical devices doubled.
total operating income of 346 pharmaceutical and biological enterprises was RMB851.537 billion, basically the same as in 2019H1, but the net profit attributable to the parent company was RMB81.226 billion, up 15.04% YoY.
Pharmaceutical commercial enterprises generally have higher operating income, accounting for 8 seats in the top 10 revenue rankings, medical device enterprises have a faster growth rate, revenue growth and home-grown net profit growth rate are ranked first in the six sub-sectors, and far more than other areas, while medical services and biopharmaceutical enterprises have higher valuations, price-earnings ratio of more than 50.
industry net profit margin increased by 1.92pct, sales costs decreased and research and development costs increased.
gross margin of the industry was 34.94 per cent, essentially unchanged from 2019H1, with a net margin of 10.25 per cent, up 1.92pct year-on-year. The cumulative sales expenses of
industry amounted to 125.745 billion yuan, down 10.39% YoY, while the cumulative investment in research and development was 23.401 billion yuan, up 17.33% YoY, and the proportion of research and development in total revenue was 3.03%, up 0.48pct YoY.
segments, gross margin and net margin growth in the medical device sector also led the way in the six segments, with sales costs falling the most, while biopharmaceutical companies experienced the fastest growth in research and development costs, up 2.08pct year-on-year.
roE industry averages 4.91%, and medical device companies occupy 17 of the top 20 ROE positions.
the pharmaceutical and biological sector was 4.91 per cent, up 1.22pc year-on-year.
in terms of segmentation, medical devices continue to perform well, leading with 13.14 percent of non-ROE deductions and occupying 17 seats in the top 20 in the non-ROE rankings.
more than 50% of the non-ROEs of Sanxiang Bio, Anglo Medical, Oriental Biology and Zhende Medical.
01 Industry-owned net profit rose 15.04%, medical device profit doubled 1.1 2020H1 home-based net profit and its growth ranking: Meirui Medical net profit exceeded Hengrui Pharmaceuticals to the top of the list, the growth rate of the top 20 medical device enterprises accounted for 1 Overall, 346 biopharmaceutical companies achieved a total home-grown net profit of 81.226 billion yuan in the first half of 2020, up 15.04 percent year-on-year, and an average net profit of 234 million yuan, basically the same as last year.
Among them, Meirui Medical, Hengrui Pharmaceuticals, Yunnan White Medicine, Shanghai Pharmaceuticals and Xinhe into five enterprises home net profit of more than 2 billion yuan, ranked in the top five, this is also the first time that medical device leader Meirui Medical overtook the leading chemical pharmaceutical and traditional Chinese medicine enterprises, ranked first.
net profit of the top 20 enterprises reached 34.374 billion yuan, accounting for 42.32 percent of the industry as a whole.
Chart 1 Homecoming Net Profit Top 20 Enterprises reached 34.374 billion yuan, accounting for 42.32% of the data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center in the homecoming net profit growth rate, the industry has shown a clear differentiation.
167 companies reported negative profit growth in the first half of 2020, but 47 also grew by more than 100%.
Chart 2 The two levels of home-grown net profit differentiation is obvious, nearly half of enterprises negative profit growth data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center Medical device enterprises during the outbreak of rapid profit growth, 15 of the top 20 seats occupied by medical device enterprises.
the highest growth rate of "epidemic-resistant first shares" Sanxiang Bio even reached 14687.20% profit growth, the top 20 enterprises 1502.17% average growth rate is far more than 15.04% of the industry average.
Chart 3 Medical device enterprises occupy 15 of the top 20 home-made net profit rankings, Sanxiang bio-growth rate of 14687.20% data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center sub-sectors, only Chinese medicine enterprises home-made net profit decreased by 25.33 percent, the rest have increased to varying degrees - China's Chinese medicine industry upgrade brought about increased competitive pressure on small and medium-sized enterprises, listed enterprises' profitability has also been affected.
the growth rate of medical devices in China, reaching 103.03 percent.
It is worth noting that the growth of medical service enterprises has 17.66 percent, which seems to be contrary to the policy of the countries in the outbreak to suspend non-urgent medical services, but this growth is mainly due to the rapid growth of CRO leading enterprises such as Kanglong cheng, drug name Kant and other large third-party testing institutions to provide new coronavirus testing, their home-grown net profit increased by 196.89 percent, 66.49 percent and 223.71 percent, respectively.
, however, traditional medical service enterprises such as Meiying Health and Yihua Health were hit hard by the outbreak, with net profit down 4746.61% and 2338.56 percent year-on-year, respectively.
Chart 4 The growth rate of attributable net profit in the sub-sectors is significantly differentiated, with the average growth rate of medical devices increasing by 103.03% Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center 1.2 2020H1 Operating Income and Its Growth Rankings: Top 10 Revenues Strong pharmaceutical commercial enterprises occupy 8 seats, 14 medical device enterprises revenue growth rate of more than 100%, from the disclosed semi-annual report, 346 pharmaceutical and biological enterprises total operating income of 851.537 billion yuan, basically the same as 2019H1.
, however, as A-share listed companies rose from 303 to 346 2020H1 average revenue of 2,461 million yuan, down 300 million yuan from 2019H1, the impact of the industry as a whole was evident.
, Shanghai Pharma's revenue of 87.165 billion yuan is unique, 1.7 times that of the second Kyushuan and nearly three times that of the third-place Baiyunshan.
Pharmaceutical business industry has generally high operating income, in the top 10 enterprises, only the third Baiyunshan and the 10th East China Pharmaceutical two belong to Chinese medicine and chemical pharmaceutical enterprises, the remaining eight are pharmaceutical commercial enterprises.
Chart 5 H1 Top 20 Revenues accounted for 48.67 percent, pharmaceutical commercial enterprises accounted for 11 seats Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center in the sub-sectors, pharmaceutical commercial enterprises accumulated revenue of 341.077 billion yuan, more than double the second-largest chemical pharmaceutical companies.
medical devices, biological products and medical services revenue is small, are less than 100 billion yuan. Figure
Chart 6 Pharmaceutical commercial revenue of 341.077 billion yuan, the revenue gap in the sub-sectors is obvious Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center Although the medical device enterprise revenue is relatively low, but due to the epidemic period medical surgical masks, medical protective clothing, new crown virus accounting testing reagents and other epidemic prevention supplies increased demand, medical device enterprises revenue growth rapidly.
14 of the 16 companies with revenue growth of more than 100% were medical device companies.
strong performance of medical device companies also led to revenue growth of the top 20 enterprises in the industry as a whole growth rate of less than 1%, the average growth rate reached 260.28 percent.
Chart 714 medical device companies with revenue growth of more than 100% Data sources: With Huashun iFinD, Zhongkang Industrial Capital Research Center and medical device enterprises during the outbreak of the rapid growth in operating income corresponding to other sub-sectors affected by the negative impact of the epidemic.
revenue growth in each segment shows that, in addition to more than 40% revenue growth in the medical device segment, operating income in the rest of the segment has declined to varying degrees.
Chart 8 Increased demand for epidemic prevention, 42.41% increase in revenue of medical device companies Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center 1.3 2020H1 market value and price-earnings ratio ranking: 11 enterprises with a market capitalization of over 100 billion, biopharmaceutical companies with an average price-earnings ratio of 121.1 As of August 31, 2020, the total market value of all 346 pharmaceutical and biological enterprises listed on A-shares was 811.1686 billion yuan, accounting for 9.82% of the total market value of A-shares, with an average price-earnings ratio of 43.12, well ahead of the A-share average of 17.77.
pharmaceutical and biological enterprises, a total of 11 enterprises have a market value of more than 100 billion yuan, the top Hengrui Pharmaceutical market value is more than 500 billion yuan.
market value of the top 20 enterprises reached 319.4242 billion yuan, accounting for 39.80 percent.
Chart 911 enterprises have a market capitalization of over 100 billion yuan, the top 20 enterprises accounted for 39.80% of the total market value (August 31, 2020, closing price) Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center In terms of sub-sectors, the total market value of chemical, pharmaceutical, medical equipment and biological products enterprises, are more than 1000 billion yuan, while the market value of pharmaceutical commercial enterprises is relatively low, less than 500 billion yuan.
price-earnings ratio, because CRO enterprises and biopharmaceutical enterprises have strong research and development capabilities, is a hot spot in the industry, so medical services and biological products with 88.39 and 69.62 price-earnings ratios respectively occupy the top of the valuation list of sub-sectors, indicating that it has better growth.
price-to-earnings ratios for pharmaceutical businesses and Chinese medicine are relatively low.
Chart 10 Chemical pharmaceutical companies have the highest market capitalization, medical services and biological products price-to-earnings ratio of more than 50 Data sources: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center 02 industry net interest rate increased by 1.92pct, sales costs decreased and Increase in research and development costs 2020H1 346 pharmaceutical companies gross margin of 34.94 percent, basically the same as last year, net profit margin of 10.25 percent, an increase of 1.92pct over last year.
In terms of segmentation, both net and gross margin of medical device companies grew the fastest, by 8.23 and 5.11pct respectively compared to the same period in 2019, while Chinese medicine companies experienced the largest decline, by 2.05pct.
It is worth noting that the increase in net profit margins of medical services, chemical pharmaceuticals and biological products companies has been accompanied by varying degrees of decline in their gross margins as a result of lower sales costs, which decreased by 0.78, 1.65 and 1.55pct, respectively, year-on-year.
Chart 11 Net and gross margin of medical devices increased by 8.23 and 5.11pct, respectively, and were the first data sources in the segment: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center, pharmaceutical and biological industry sales costs in 2020 were 125.745 billion yuan, down 10.39% YoY, and research and development expenses were 14.77 percent, down 14.77% YoY.
the sub-sectors, with the exception of the pharmaceutical business, there has been a decline in sales expense rates in all but the pharmaceutical business.
medical devices and chemical pharmaceuticals fell by 3.27 and 1.65pct respectively, the two most changing segments.
decline in the cost of medical device sales was influenced on the one hand by the anti-corruption policy of the national pharmaceutical industry and, on the other hand, by the rapid rise in operating income during the epidemic.
and the large decrease in the cost rate of chemical drug sales can show that the effect of the national collection policy has been initially shown.
significant decline in sales expenses in the five sub-sectors also led to a significant increase in net margin for the industry as a whole, with gross margins basically unchanged from the same period in 2019.
Chart 12 Medical device sales costs increased by 15%, and the rest of the sub-sectors fell Data sources: with Huashun iFinD, Zhongkang Industrial Capital Research Center and the industry as a whole sales costs decreased corresponding to the increase in investment in research and development of pharmaceutical and biological enterprises.
as of August 31, 2020, 325 companies had announced research and development costs in both 2019H1 and 2020H1.
in 2020H1, their cumulative research and development investment reached 23.401 billion yuan, up from 19.944 billion yuan in the same period, an increase of 17.33 percent year-on-year.
research and development expense rate of 3.03 percent, an increase of 0.48pct over the same period, indicating that the industry as a whole has better growth and bright prospects for development.
, in addition to the decline of 0.68pct in the research and development expense rate of medical device companies, the rest of the sub-sectors have increased their investment in research and development.
the fastest growth rate in research and development of biological products, with a growth rate of 2.08pct.
03 Industry average ROE reached 4.91%, medical device companies occupy 17 seats in the top 20 ROE in terms of shareholder returns, the industry 2020H1 average deduction non-ROE reached 4.91%, up 1.22pct YoY.
sub-sectors, medical devices continued to perform well, leading the way with 13.14% of non-ROE deductions, far outpacing other sub-sectors, occupying 17 seats in the top 20 non-ROE rankings, and more than 50% of ROEs of Sanxiang Bio, Anglo Medical, Oriental Bio and Zhende Medical.
is inextricable to the growth in net profit of medical device companies during the outbreak.
overall ROE also indicates that the pharmaceutical and biological industry maintained good profitability during the outbreak.
Chart 13 Medical Device ROE reached 13.14%, nearly 3 times the number two Data Source: Tonghuashun iFinD, Zhongkang Industrial Capital Research Center Chart 14 ROE Top 20 Rankings, Medical Device Enterprises Occupy 17 Data Sources : Tonghuashun iFinD, Zhongkang Industrial Capital Research Center, said that although the outbreak on the pharmaceutical and biological industry's average operating income caused a relatively large impact, but due to the reduction of industry sales costs, medical device industry profitability and other reasons, the industry's net profit and net interest rate have maintained growth during the outbreak.
industry also has a serious differentiation phenomenon, and the epidemic-related enterprises, such as epidemic prevention supplies production enterprises, new coronavirus detection enterprises, CRO enterprises have achieved relatively rapid growth;