Notable Stock to Watch: China Biologic Products Holdings, Inc. (NASDAQ:CBPO)

Earnings News

China Biologic Products Holdings, Inc. (NASDAQ:CBPO) changed 5.03% to recent value of $69.78. The stock transacted 266621 shares during most recent day however it has an average volume of 334.79K shares. It spotted trading -35.05% off 52-week high price. On the other end, the stock has been noted 16.15% away from the low price over the last 52-weeks.

China Biologic Products Holdings, Inc. (NASDAQ:CBPO), a leading fully integrated plasma-based biopharmaceutical company in China, declared its unaudited financial results for the third quarter of 2018.

Third Quarter 2018 Financial Highlights

Total sales in the third quarter of 2018 increased by 21.9% in RMB terms and 19.6% in USD terms to $119.1 million from $99.6 million in the same quarter of 2017.

Gross profit increased by 21.0% to $81.2 million from $67.1 million in the same quarter of 2017. Gross margin increased to 68.2% from 67.4% in the same quarter of 2017.

Income from operations decreased by 23.1% in RMB terms, and 24.5% in USD terms to $28.7 million from $38.0 million in the same quarter of 2017. Operating margin decreased to 24.1% from 38.2% in the same quarter of 2017. Excluding TianXinFu, income from operations decreased by 34.8% in RMB terms and 36.1% in USD terms in the third quarter of 2018 compared to the same quarter of 2017, and operating margin decreased to 22.6% from 38.2% in the same quarter of 2017.

Non-GAAP adjusted income from operations decreased by 15.6% in RMB terms and 17.4% in USD terms to $38.5 million from $46.6 million in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted income from operations decreased by 29.5% in RMB terms and 30.9% in USD terms in the third quarter of 2018 compared to the same quarter of 2017.

Net income attributable to the Company increased by 6.3% in RMB terms and 4.1% in USD terms to $32.9 million from $31.6 million in the same quarter of 2017. Fully diluted earnings per share decreased by 15.3% to $0.94 compared to $1.11 in the same quarter of 2017. Excluding TianXinFu, net income attributable to the Company decreased by 5.7% in RMB terms and 7.6% in USD terms in the third quarter of 2018 compared to the same quarter of 2017.

Non-GAAP adjusted net income attributable to the Company decreased by 12.7% in RMB terms and 14.5% in USD terms to $33.7 million from $39.4 million in the same quarter of 2017. Non-GAAP adjusted earnings per share decreased to $0.96 from $1.38 in the same quarter of 2017. Excluding TianXinFu, non-GAAP adjusted net income attributable to the Company decreased by 25.8% in RMB terms and 27.4% in USD terms in the third quarter of 2018 compared to the same quarter of 2017.

Certain income statement and balance sheet items impacted by the TianXinFu acquisition are presented for comparison purposes.

“In line with our previously revised forecast for the full year 2018, our results in the third quarter reflected the impact of ongoing regulatory changes and intensified competition in China’s plasma industry,” said China Biologic Chairman David Hui Li. “We were, however, pleased to make significant progress in both attracting industry talent and strengthening our sales and marketing efforts. I am confident that we now have the right corporate direction, product strategy and management team in place to build a world class biopharmaceutical and biotechnology company, with a leading position in key therapeutic areas. Our future growth will benefit from China’s rapidly growing health care market, as well as our exploration of opportunities for expansion in international markets.”

“In the third quarter, we were excited to announce the appointment of Dr. Bing Li as our new CEO. With Dr. Li’s deep industry experience and leadership, China Biologic is well positioned to further improve our governance and management systems as we upgrade our internal capabilities and explore strategic acquisitions to enhance both our portfolio of high growth products and our sales and marketing capabilities.”

Dr. Bing Li, CEO of China Biologic, said, “In the third quarter of 2018, we made progress on strengthening China Biologic’s commercial capabilities through the recruitment of several industry veterans to our sales and marketing team. As an industry leader, China Biologic will continue to educate Chinese doctors about the benefits of IVIG, PCC and other coagulation products in treating chronic patients across a wide range of clinical indications, as we see strong growth potential in this underdeveloped industry segment. We have also taken further steps to improve the Company’s corporate governance and improve important aspects of operation, with new hires in leadership roles expected to be on board by the end of the year. As part of our core strategy, we are actively pursuing suitable M&A targets that will position China Biologic for long-term growth.”

“Looking into the fourth quarter and beyond, our new sales and marketing talent will be dedicated to expanding sales coverage and deepening penetration at the hospital level. These efforts will help decrease the inventory position of our products, which is currently at higher than normal levels, both internally and with our distributors.”

Share Repurchase Program

The company today announced that its Board of Directors has authorized a share repurchase program under which China Biologic may repurchase up to US$100 million worth of shares over the next 6 months.

The Company’s repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades or through other legally permissible means. The timing and extent of any purchases will depend upon market conditions, the trading price of its shares and other factors, and are subject to the restrictions relating to volume, price and timing under applicable law.

CBPO has a gross margin of 68.20% while its profit margin remained 15.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained 2.80% for this year while earning per share for the next 5-years is expected to reach at 2.45%.

The company has 38.78M of outstanding shares and 22.78M shares were floated in the market. According to the most recent quarter its current ratio was 6.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.40% from the mean of 20 days, -11.78% from mean of 50 days SMA and performed -18.40% from mean of 200 days price. Company’s performance for the week was 11.04%, -12.20% for month and YTD performance remained -11.41%.

China Biologic Products Holdings,CBPO

Thomas Lizotte is a self-taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Thomas is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Earnings News category for our site.

 

Email: Thomas@mosttradedstocks.com 

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