\u3000\u3000 Youcare Pharmaceutical Group Co.Ltd(688658) (688658)
Youcare Pharmaceutical Group Co.Ltd(688658) the product structure continues to adjust and the profitability continues to improve. It is recommended to pay active attention
At this stage, Youcare Pharmaceutical Group Co.Ltd(688658) Ginkgo biloba extract injection with high gross profit is rapidly in large volume, the agent products with low gross profit are gradually declining, the company's product structure is gradually adjusted, and its profitability continues to improve. The gross profit margin has increased from 43.03% in 2017 to 68.54% in 2021q3. With the continuous adjustment of product structure, the profitability of the company will continue to improve. We expect that the revenue from 2021 to 2023 will be RMB 5.055/6.420/8.002 billion respectively, the net profit attributable to the parent company will be RMB 5.5/7.3/960 million respectively, and the EPS will be RMB 1.23/1.62/2.13 respectively. The current share price corresponding to PE is 20.8/15.8/12.1 times respectively. It will be covered for the first time and given a "buy" rating.
Continuous dose of Ginkgo biloba extract injection
In 2019, the state adjusted the medical insurance catalogue of Ginkgo biloba extract injection, cancelled the restriction on the use of medical institutions above level II, and greatly increased the terminal channels. At the same time, increase the reimbursement scope of ear blood flow and neurological disorders. According to the company's announcement, as of the first three quarters of 2021, nearly 49% of the hospitals of Ginkgo biloba extract injection in grade hospitals are not covered, and nearly 80% of the hospitals of grass-roots medical institutions are not covered. It is expected that Ginkgo biloba extract injection is expected to maintain growth with the increase of terminal hospitals.
The non-commercial opening of class 1.1 new drug ADINA has contributed another growth point to the company's performance
The company recently announced that class 1.1 new drugs were approved for listing and the commercialization stage was opened on January 18, 2022. It is expected that the company is expected to bring new growth points to the company's growth with strong sales capacity, and continue to improve the company's product structure and profitability.
The pipeline of chemical medicine and traditional Chinese medicine under research is abundant, and nucleic acid drugs are prospectively distributed
Relying on its own innovative drug platform, the company reserves more research projects in various development stages, including hydroxysafflower yellow A for injection of traditional Chinese medicine innovative drug; Chemical medicine innovation drug: umoselta hydrogen sulfate capsule; At the same time, the company has built a nucleic acid technology platform and arranged a nucleic acid drug echelon. The ct102 project has made the fastest progress and is currently in phase I clinical stage.
Risk tip: risk of price reduction in medical insurance negotiation of Ginkgo biloba extract injection, lower than expected sales of new products, reduction risk, etc.
