\u3000\u3000 Jianmin Pharmaceutical Group Co.Ltd(600976) (600976)
Events
On January 28, 2022, the company announced the announcement of annual performance increase in 2021. In 2021, the net profit attributable to the shareholders of the listed company is expected to be 318 million yuan ~ 333 million yuan, with a year-on-year increase of 115% to 125%; After deducting non recurring profits and losses, the company’s performance is expected to be 304 million yuan to 319 million yuan, with a year-on-year increase of 121% ~ 132%.
Event comments
The overall performance was in line with expectations, and the growth rate increased steadily in the fourth quarter
If calculated according to the numerical center published by the company, the net profit attributable to the parent in 2021 was 326 million yuan, and the net profit attributable to the parent in the fourth quarter was 68 million yuan, with a year-on-year increase of 211%, higher than that in the second quarter (+ 192%) and the third quarter (+ 104%). The net profit center excluding non parent company was 312 million yuan, compared with 70 million yuan in the fourth quarter, with a year-on-year increase of 249%, which was also higher than that in the second quarter (+ 203%) and the third quarter (+ 105%). The overall performance was in line with expectations and maintained high growth in the fourth quarter.
The pharmaceutical industry continues to grow, with a year-on-year increase of about 44% in 2021
The company’s performance growth in 2021 is mainly due to the increase in the revenue of the pharmaceutical industry. It is expected that the revenue of the pharmaceutical industry will increase by about 44% year-on-year in 2021, and the calculated value is about 1.979 billion yuan, exceeding the previous expectation. The main reason is that in 2021, the company increased advertising investment and market development, optimized product structure and marketing team construction, and increased the income of main varieties of OTC product line and prescription drug product line.
It is emphasized that the value of the company needs to be re recognized. The only in vitro cultivation bezoar provider + the continuous growth of the pharmaceutical industry are superimposed. We reiterate that the market value of Jianmin Pharmaceutical Group Co.Ltd(600976) can not be viewed alone. It is more reasonable to divide it into two parts. 1) Main business: it belongs to OTC varieties of traditional Chinese medicine. The market space of single variety can be further expanded. Echelon products continue to grow with the optimization of product structure and the construction of marketing team. In addition, with the approved new revenue growth points of traditional Chinese medicine innovative drugs, the OTC business of traditional brands is expected to improve its valuation. 2) Jianmin Dapeng: with 33.5% equity participation and stable equity ratio, and the price of Angong Niuhuang Pill continues to rise, the company, as the only in vitro cultivation Niuhuang provider, has strong resource attributes and irreplaceable. The valuation of this part of equity value can refer to the same scarce target Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) .
Investment advice
Our previous forecast remains unchanged. The company’s revenue from 2021 to 2023 is RMB 3.27/39.7/4.58 billion respectively, with a year-on-year increase of 33.2% / 21.3% / 15.4% respectively. The net profit attributable to the parent company is RMB 3.3/4.3/540 million respectively, with a year-on-year increase of 124.3% / 30.4% / 24.2% respectively. The corresponding EPS from 2021 to 2023 is RMB 2.16/2.82/3.50, and the corresponding valuation is 30x / 23x / 19x. Considering the stable growth of the company’s main business and the echelon of R & D products, the in vitro cultivation of Bezoar by Jianmin Dapeng, a joint-stock company, is extremely scarce, and the “buy” investment rating is maintained.
Risk tips
The company’s performance is lower than expected; The growth rate of Jianmin Dapeng pharmaceutical industry was lower than expected; Brand promotion is not as expected.
