Nearly 80% Of The Total Revenue Of The Factory Is Shut Down And Self Inspection Is 10 Times. Where Is The Future Of Steli'S "Explosion"?

The explosion accident in steli workshop has aroused strong market attention.

On the morning of July 28, Zhejiang steli Pharmaceutical Co., Ltd. (hereinafter referred to as "steli") announced that the production workshop of iohexol crude products in Xianju plant area of the company had an explosion accident and a fire at about 19:10 p.m. on July 27, 2020. At present, two people were seriously injured in the accident.

On the evening of the 28th, steli released the latest information bulletin again, saying that the crude product workshop and equipment of iohexol in Xianju plant area were seriously damaged and could not be used for production. At present, Xianju factory has been in the state of production stop and self inspection.

As one of the big bull stocks in the A-share pharmaceutical sector, steli has increased by nearly 160% this year and nearly 10 times since the second half of 2018. Affected by the news of the explosion accident, the opening of trading on the 28th, steli closed the whole day, trading volume of more than 130 million.

According to the data from the dragon and tiger list after hours on July 28, buying an institution seat bucked the trend and made a bottom price of 77 million, accounting for nearly 60% of the total transaction amount of the whole day. For the second, third, fourth and fifth seats, only a few million were traded. One seat was sold on Hefei Road of Haitong Securities, which sold more than 80 million in the whole day. In addition, Hualong securities also sold more than 30 million Shanghai Daduhe road.

At present, the explosion plant has stopped production for self inspection

According to the latest announcement, Xianju plant has been in the state of self-examination, and it is estimated that the shutdown time will not exceed 3 months.

The main production base of quinolones and their main products are listed as quinolones.

The data announced in the evening more intuitively shows the importance of Xianju plant area to listed companies.

According to the announcement, in 2019, Xianju plant area realized an operating income of about 1.014 billion yuan, accounting for 77.51% of the company's consolidated operating income, and realized a net profit of about 150 million yuan, accounting for 82.25% of the company's consolidated net profit.

In addition, the company's earlier announcement also disclosed that the operating income of iohexol API in Xianju plant area in 2019 was 359.8595 million yuan, accounting for 27.49% of the company's overall operating income, and the gross profit generated was 131.5432 million yuan, accounting for 23.52% of the company's overall gross profit.

Large factories, which account for nearly 80% of the company's revenue, may have to stop production for three months, which means that it will cause heavy damage to the performance of steli.

In the afternoon of July 28, in response to the 21st century economic report, the Secretary's office of Mr. Stanley said that the impact of the explosion in Xianju plant area on the production of iohexol API was obvious. However, in addition to Xianju plant area, Haishen pharmaceutical, a subsidiary of the company, also had iohexol API production lines in normal production, so it was not sure whether the explosion in Xianju plant area would affect the company's iohexol Normal supply of API.

In fact, Haishen pharmaceutical, a subsidiary mentioned by the Secretary Office of Mr. steli, was ordered by Taizhou ecological environment bureau to stop production and renovate in December 2019 due to environmental protection problems, and production was not resumed until the beginning of March this year.

Haishen pharmaceutical was acquired by steli in 2018 and has been included in the scope of consolidated financial statements since December 1, 2018. According to the disclosure by steli, steli holds 98.20% of the equity of Haishen pharmaceutical. Haishen pharmaceutical is mainly engaged in the manufacture of iohexol, iopalol and other raw materials. It has a 180 t / a iohexol production line and a 100 t / a ioparol production line, accounting for 23.73% of the total production capacity of stili iodine contrast agent API.

From the revenue structure of steli, Haishen pharmaceutical can be said to be the "shoulderer" of the profit source of steli. At the end of 2019, the net profit of the company was 637 million yuan, accounting for 1.356 billion yuan of total profit of the company.

First, Haishen Pharmaceutical Co., Ltd. stopped production for three months due to environmental problems at the end of last year, and then resumed production in March this year. Now it is Xianju factory area that has suffered an explosion accident and stopped production for self inspection. There are two important iohexol API production lines under steli, and the company's performance will undoubtedly be greatly affected.

According to the financial data disclosed by steli, the company's sales revenue in 2019 mainly comes from the sales of iohexol, iohexol and other contrast media products in China's domestic and overseas markets.

In 2019, the operating revenue of steli company is 1.309 billion yuan, of which the contrast agent business is 1.165 billion yuan, accounting for 88.98% of the operating income; the net profit of parent company is 170 million yuan, with a year-on-year increase of 81.83%. During the reporting period, the output and sales volume of iohexol products of the company ranked first, with the output of 59380kg and the sales volume of 66780kg.

Testing the supply of iohexol

In the latest announcement, steli stressed that the workshop of the explosion accident mainly produced crude iohexol. At present, the workshop has been unable to produce normally, which is expected to have a direct impact on the production of iohexol API in Xianju plant area.

Affected by this, at the beginning of trading on the 28th, stili's replacement shares of iohexol concept stocks rose sharply, and Beilu Pharmaceutical Co., Ltd. rose by more than 5%.

According to the official website of steli, the company was established in 1997. It is a high-tech enterprise specializing in the R & D, production and sales of raw materials and intermediates of X-CT nonionic contrast agent series and quinolones series. It is also the largest and most complete factory of contrast agent generic products in China. Among them, iohexol API production capacity and output ranked first in China.

According to the relevant information of China Pharmaceutical Industry Information Center, iohexol, barium sulfate, and iodofol are the best-selling contrast agents in the world at present, followed by iodixanol, iopromide and ioversol. Among them, iohexol is far ahead in the market scale.

According to the data of China Pharmaceutical Industry Information Center, the domestic iohexol market scale will be 2.709 billion yuan in 2019, with an annual growth rate of 7.54%. At present, there are 13 companies selling iohexol preparations in China. Only GE Healthcare as has obtained the import license of iohexol preparations. In recent years, Yangzi River Pharmaceutical, GE Healthcare as and Beilu Pharmaceutical Co., Ltd. account for a relatively high share of iohexol in the domestic hospital market.

It is understood that at present, there are few manufacturers that can provide iohexol API in China, and steli has two approval documents, which is the main manufacturer. In addition, Zhejiang Haichang pharmaceutical is also one of the manufacturers.

As of the end of 2019, the main customers of norethasone, Yangzi norethasone and norethasone were registered in Japan, China and Europe.

On the afternoon of July 28, the Secretary Office of Beilu pharmaceutical confirmed to the reporter of 21st century economic report that steli was indeed one of the suppliers of iohexol API. However, because the company also has other suppliers, so at present, the explosion accident in the factory area of steli Xianju will not affect the production and operation of the company in the short term.

The reporter noted that Beilu pharmaceutical completed the acquisition of Haichang pharmaceutical in December 2019, holding 37.91% shares of Haichang pharmaceutical. Beilu pharmaceutical pointed out in the annual report of 2019 that Haichang pharmaceutical is one of the few enterprises with the qualification of producing iodine contrast agent raw materials in China, and the acquisition of Haichang pharmaceutical is an important strategic layout for the company to realize the integration of the industrial chain, which is conducive to strengthening the guarantee of the supply of iodine contrast agent raw materials.

In addition, the reporter found that the cooperation between Hengrui pharmaceutical and steli is also relatively close. On May 22 this year, Hengrui pharmaceutical once announced that the company cooperated with Zhejiang steli and Shanghai steli on the production, supply and commercial operation of iohexol injection and iopalol injection.

According to the agreement between the two parties, steli is responsible for the development and registration of iohexol injection and iopalol injection, while Hengrui is responsible for the commercial operation of cooperative products in mainland China, including marketing, self-sale or cooperative sales with distributors.

On the afternoon of July 28, the reporter sent an interview letter to the general secretary office of Hengrui pharmaceutical, asking whether the explosion accident in steli workshop would affect the future production and operation of Hengrui pharmaceutical. However, as of the time of publication, the Board Secretary Office of Hengrui pharmaceutical did not give a response.

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