Core ideas: 1. Event. Franc Group released a quarterly in 2015, the report period, operating income of 1.553 billion yuan, an increase of 26.47%; net profit attributable to shareholders of listed companies 183 million yuan, an increase of 27.42%, net profit of 140 million yuan after deduction of non YoY growth of 9.82%. EPS was 0.62 yuan / share. 2. Our analysis and judgment. (A) In line with expectations, core species growing steadily. To achieve the company in the first quarter attributable to shareholders of listed companies net profit after deduction of non rose 9.82 percent, in line with expectations, net profit rose 27.42 percent end, better than the net profit after deduction of non end mainly due to an increase in government subsidies. Sales expenses increased by 31.54%, administrative expenses increased by 38.42%, higher than the revenue growth, the impact of earnings growth. In addition, Ningxia and other parts of the negative impact of depreciation of the plant remains on performance. Compared to 2014, the company's performance gradually getting better, better cost control in the first quarter of 2014, gross margin 61.89%, up 0.54 percentage points over last year, net profit margin of 13.07%, up 3.08 percentage points higher than last year, cost of sales rate 38.51%, 1.32 percentage points lower than last year, the management expense ratio 8.55%, up 0.17 percentage points higher than last year, overall cost control is good. Sub-species, the core species remain steady and rapid growth. According to the data terminal, we expect a quarter SFI growth in more than 10% (IMS terminal data Showing 1 - February growth rate of 22%), ilaprazole growth between 50-60% leuprolide growth rate between 50-60%, follicle stimulating hormone growth between 10-20%, mouse nerve is still double the growth momentum. (B) equity incentive has been granted for the first time, help the future development of the company. During the reporting period, the company established March 27, 2015 as the first equity incentive grant date, the number of first granted incentive target was adjusted to 484 by 458, the number of restricted shares granted by the first 900 million shares changed to 866.04 million shares, and on April 9 to complete the relevant procedures, we believe equity incentive indicator set from 15%, 20% to 25%, a yearly highlight the confidence of management, but also to fully mobilize the enthusiasm of incentive targets for the next three In the company's growth has laid a solid foundation, completion of the first grant, the company's future growth accelerated curtain has been opened. (Iii) growth logical, forward and attack, retreat. We believe that the franc grow logical, it is a forward and attack, retreat to the subject. Retreat to: 1. Performance: the performance of the next three years is expected to maintain 20-30% growth. We believe that the 2015 results are expected to return even more than 15-20% growth and is expected to maintain 20-30% earnings growth over the next three years, the following reasons: first, equity incentive requires 20% compound growth rate and accelerate every year reflects the company of confidence, but also provides the basis for the performance guarantee; Second, the tender price for Shenqifuzheng impact of non-imagined so large, and the size of the company four high-growth variety series has been able to rival with Shenqifuzheng (2014 Shenqi righting 1.31 billion, ilaprazole + gonadotropin series + leuprolide + mouse nerve about 1.03 billion), will take over the next three years to assume the task of high growth performance, Shenqifuzheng will gradually become the company's cash flow variety, influence gradually weakened; Third, after 10 years of continuous marketing reforms in 2015 is expected to gradually reflect the effect of the marketing reform for performance-than-expected to bring a positive impact. 2. Future Development: We believe in the four high-growth variety undertake 2--3 years after earnings growth, the company expected to be available ilaprazole injection volume, become another level of 1 billion blockbuster varieties, the company has in terms of monoclonal antibody deep reserves, the future is expected to become one of the industry's leading enterprises mAb, monoclonal antibody with the business gradually fall and the market for its gradually deepening awareness of the company in the next 2--3 years is expected to usher in performance, valuation Double Promotion Future look one hundred billion market capitalization. 3, the current valuation: about 32-33 times the current valuation of the company, in which the same texture of comparable companies, valuations are not expensive. Into the attack. Deduction company history, we find that the company's leadership really understands the true meaning of industry transformation, transition times have been very successful, the company leading the development of the pulse of the changes in the industry with a strong sense of smell and sensitivity in vitro Zhu Baoguo, chairman of investment in a listed company cute doctors is a tried and proved, in the pharmaceutical industry Language new things, new technologies, new normal background era of great change, the company is to have some room for imagination. 3. Company investment advice. We expected 2015--17 EPS were 2.08,2.59,3.29 million, corresponding to PE were 33,27,21 times. The company as a high-end prescription drug companies, changes in the next three years transitional period earnings growth logical definition (four varieties become high growth performance of the main growth), and the monoclonal antibody injection ilaprazole business gradually fall, the company's future is expected to become one hundred billion market capitalization level single anti-biological pharmaceutical companies, we are more optimistic about the long-term development logic, while the company has short-term imagination. Maintain "recommended" rating. 4. The main risk factors. The main varieties of sales growth than expected; API performance fluctuations; Shenqifuzheng large price cut. Jichuanjian Pharmaceutical: steady earnings growth SUMMARY study Abstract company announcement: Founder study class template 2015 first quarter the company's revenue, net profit and buckle his maternal non-profit and 135 million yuan respectively, 9.04,1.60, up respectively, 26.86%, 27.08% and 26.9%. Operating cash flow 175 million yuan, 0.204 yuan per share. Investment Highlights: 1. The profit growth in line with expectations. The company first quarter 2015 revenue, net profit and buckle his maternal non-profit and 135 million yuan respectively, 9.04,1.60, respectively, an increase of 26.86%, 27.08% and 26.9%. 175 million yuan of operating cash flow, good management quality. Earnings per share of 0.204 yuan. Gross margin, cost of sales rate, management expense ratio and finance charges rates were 84.3%, 55.12%, 8.71% and 0.1%, down 0.6,1.4,0.2 and 0.6 percentage points respectively. Results in line with expectations. 2. Sales revenue steady growth. Variety of view points to the company's key products Po blue oral steady growth, rabeprazole growth rate decreased, but second-line pediatric soy varieties Alice oral and Sanao piece holding more than 30% growth. We believe that the company's sales ability, sales growth in line with expectations. New acquisitions in the integration of the East Branch of the pharmaceutical, less profit contribution, revenue growth and profit growth mainly from the company's original product. 3. The acquisition process is started, additional supplemental cash flow. Mergers and acquisitions, acquired on December 14 East Division 100% stake in pharmaceutical, January 15 to achieve business change. Ongoing sales management integration. The company in December 14 announcement issuance of not more than 828 million, pending which, after the issuance of the success we believe help supplement cash flow for the subsequent merger preparation. The earnings forecast: We maintain 15-17 without considering additional EPS were 0.86 / 1.11 / 1.42 yuan, respectively, corresponding to the valuation of 29X / 23X / 18X. Consider additional 15-17 EPS were 0.82 / 1.05 / 1.35 yuan, respectively, corresponding to the valuation of 31X / 24X / 19X, we are optimistic about the company's products line rich, strong marketing capability, it is expected to start the acquisition process and constantly enrich the product line, the next 12 May reasonable valuation 29.4 yuan, give the recommended rating. 5. Risk Warning: Product sales do not reach the expected risk; medicine price risk; tender price risk