won the FDA granted the SPA charter

Investment points:
The company 2011 quarter realize operating income reached 1.373 billion yuan, tory burch online an increase of 38.13%; The total cost of business for 9.55 billion yuan, an increase of 38.64%; 22.3 million yuan net year-on-year, 138.79%; Earnings per share for 0.31 yuan, if deduct sell equity factors, first quarter earnings per share of the $s, basic accord with our expectations.
Expected compound danshen pill reach sales of 1.3 billion yuan of above. The company main product compound danshen dropping American FDA clinical second round results than expected, won the FDA granted the SPA charter, the company developing all kinds of marketing activities play a very active role, especially compound danshen in hospital channel sales dropping by break bottlenecks.
We expect the 2011 compound danshen pill that sales will reach 15 Tory Burch Sandals, million yuan, growth breaks to above 10%. With the gradually release and basic requirements of the academic marketing effect, compound danshen appeared dropping further growth is expected to regain.
Second-line varieties will maintain the fast growth momentum, biological pharmaceutical hotspot. Recently the company two new drugs the injectable danshen polyphenols acid and recombinant human urokinase original approved to companies is of great significance. First, danshen polyphenols acid approved rich company product lines, FenZhenJi propitious to promote the academic marketing, tasly another breed yiqi complex veins sales is expected to accelerate growth; And recombinant human original as domestic less urokinase biological products I approved of the new drugs, means in biological pharmacy domain has zha dew dawn. The company and the cooperation will also TRANSGENE SA, future both parties will breakthrough around 5-6 varieties of cooperation. We think, in policy, strongly support the biopharmaceuticals business is expected to vigorous development, thus become a company new profit growth point.
Earnings forecasts. We raised the company 2011 earnings forecasts to 1.25 Tory Burch Flip Flops, yuan, 2012-2013 1.42 and 1.76 yuan profit forecast unchanged, at present stock respectively corresponding valuation levels 32 times, 28 times 23 times, in line with pharmaceutical stocks lower in valuations. As compound danshen FDA clinical phase iii trials dropping the gradually develop, we think the company valuations are still rise further motivation, so we still maintain its "strongly recommend" investment rating, suggest investors will TianShiLi as long-term investment targets. (WangZhiHong) datong securities