Hubei Jumpcan Pharmaceutical Co.Ltd(600566) (600566)
He has been deeply engaged in the field of pediatric medicine for more than 20 years and actively carried out business transformation
The company’s drug product line mainly focuses on Pediatrics, digestion, respiration and other fields, with three plates of traditional Chinese and Western medicine, traditional Chinese medicine daily chemicals and traditional Chinese medicine health products, covering five pipelines: Pediatrics, gynecology, respiratory department, digestive department and geriatric diseases. In addition to the pharmaceutical business, the company’s subsidiary Pudilan daily chemical is mainly engaged in Pudilan Bluetooth paste and other daily chemical products, and kangxuyuan is mainly engaged in health products. In November 2021, the company signed an exclusive cooperation agreement with Tianjing biology on long-acting growth hormone tj101, which is expected to expand the pediatric drug product line.
The product layout is rich, creating a combination of Chinese and Western medicine
The company’s main products are Pudilan anti-inflammatory oral liquid, rabeprazole sodium enteric coated capsule, children’s douqiao Qingre Granule, etc. Pudilan Xiaoyan oral liquid is a special traditional Chinese medicine preparation of Hubei Jumpcan Pharmaceutical Co.Ltd(600566) exclusive dosage form. The retail terminal sales of products continue to work, and the adjustment of medical insurance catalogue is gradually implemented. Pudilan anti-inflammatory oral liquid has a good brand recognition. In 2020, the market share of heat clearing and detoxifying Chinese patent medicines in urban public hospitals and retail pharmacies in China was 16.74% and 4.09% respectively, ranking in the forefront of the industry.. The market share of Xiaoer douqiao Qingre Granule in pediatric cold Chinese patent medicine in urban public hospitals and retail pharmacies in China in 2020 is 60.43% and 28.01% respectively. With high-quality evidence-based evidence and good brand image, it has achieved rapid sales growth. The company has a rich variety reserve in the field of traditional Chinese medicine, and the characteristic varieties such as Huanglong Zhike granule, Sanao tablet, Chuanxiong Qingnao Granule and ganhai Weikang Capsule gradually release their development potential.
Many departments have issued policies to encourage the research and development of pediatric drugs to meet the needs of pediatric clinical drugs
In 2021, the State Council issued the notice on printing and distributing the outline of China’s women’s development and the outline of China’s children’s development, pointing out that we should encourage the R & D and production of children’s drugs, speed up the application and approval of children’s drugs, and expand the range of pediatric drugs and dosage forms in the national catalogue of essential drugs. Pediatric drug use policy has brought new procurement demand to China’s pediatric drug market, and China’s pediatric pharmaceutical companies have ushered in major growth opportunities.
Cooperate with Tianjing biology to enter the field of growth hormone
On November 11, 2021, Hubei Jumpcan Pharmaceutical Co.Ltd(600566) signed the exclusive development, production and sales cooperation agreement with Tianjing biology, Tianjing biology will grant Hubei Jumpcan Pharmaceutical Co.Ltd(600566) its tj101 an exclusive license for development, production and commercialization in mainland China (excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan). Hubei Jumpcan Pharmaceutical Co.Ltd(600566) has more than 3500 professional sales teams, covering more than 23000 hospital terminals. It is expected to take advantage of the company’s channel advantages to promote product promotion.
Profit forecast and investment rating
We estimate that the operating revenue of the company from 2021 to 2023 will be RMB 7.233 billion, RMB 8.043 billion and RMB 8.510 billion respectively, and the net profit attributable to the parent company will be RMB 1.708 billion, RMB 1.894 billion and RMB 2.026 billion respectively. We use the PE relative valuation method of comparable companies to evaluate the company. The PE of the company in 2021 is 18.76 times and the target price is RMB 36. It is covered for the first time and given a “buy” rating.
Risk tips: ① product sales promotion is not as expected; ② There is uncertainty in the R & D and sales of growth hormone products; ③ Risk of price fluctuation of core drugs; ④ Risk of stock price fluctuation
