Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) (002603)
Event: Jieyu Chufan capsule, a new drug of category 1.1 of the company, received the drug registration certificate approved and issued by the State Drug Administration.
Jieyu Chufan capsule is an innovative traditional Chinese medicine independently developed by the company, with good clinical effect. The company has independent and complete intellectual property rights of the drug. The company has conducted a multicenter, randomized, double-blind, double simulation, parallel controlled clinical trial of placebo and fluoxetine hydrochloride tablets, The results showed that the score of Hamilton Depression Scale (HAMD-17) decreased compared with the baseline. The curative effect of the experimental group was better than that of the placebo group, not worse than that of the fluoxetine hydrochloride group; it improved the score of single symptoms of traditional Chinese medicine syndromes such as mental depression and the score of Hamilton Anxiety Scale (HAMA).
The company has R & D advantages and rich pipeline of products under research. The company has established a new drug R & D technology system guided by the theoretical innovation of collateral diseases of traditional Chinese medicine. It has the R & D ability of various new traditional Chinese medicine drugs of compound traditional Chinese medicine, component traditional Chinese Medicine and monomer traditional Chinese medicine and the R & D ability of chemical medicine imitation drugs. The technical achievements are in a leading position in the same industry in China. The six patented products of the company have conducted random, double-blind, multi center and large sample evidence-based research. At present, the company has obtained clinical approval, involving endocrine, urinary system, digestive system, rheumatism and mental diseases. In addition, there are a number of preclinical research projects.
The company’s brand has become well-known and the product penetration has been improved. Lianhua Qingwen not only has a significant increase in sales, but also has increased the coverage of the blank market in terms of structure, and the brand influence has been significantly improved. Lianhua Qingwen products have ranked first in the retail market in terms of market share. The company won the first prize of national science and technology progress award, which has played a significant role in enhancing the market influence of the company’s cardiovascular and cerebrovascular products.
Investment suggestion: we are optimistic about the development prospect of the company. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.634/2.034/2.309 billion respectively, the corresponding EPS will be RMB 0.98/1.22/1.38 respectively, and the corresponding PE of the current stock price is 19 / 15 / 13X, maintaining the “recommended” rating.
Risk tips: the risk of sharp decline in product demand after the epidemic, the risk of drug price exceeding expectations, the risk of R & D failure, etc
