Jianmin Pharmaceutical Group Co.Ltd(600976) (600976)
event
On December 31, 2021, the class 1.1 innovative drug qiruiweishu capsule approved by the State Drug Administration Jianmin Pharmaceutical Group Co.Ltd(600976) was put on the market.
Event comments
Qiruiweishu capsule has prominent clinical value and provides a new treatment option for patients with chronic gastritis
1.1 qiruiweishu capsule, a kind of innovative drug, is a traditional Chinese medicine innovative drug developed on the basis of preparations in medical institutions. It has carried out randomized, double-blind, positive drug parallel control and multi center clinical trials. The results of clinical trials show that it can be used for the treatment of epigastric pain caused by mild to moderate chronic non atrophic gastritis with erosion damp heat and blood stasis syndrome.
The formula of qiruiweishu capsule comes from the hospital preparation of Guang'anmen Hospital of Chinese Academy of traditional Chinese medicine, which has a good foundation of clinical application. And pharmacological and toxicological research and clinical trial research data show that qiruiweishu capsule has a significant effect in the treatment of chronic non atrophic gastritis with erosion damp heat and blood stasis syndrome, especially in improving epigastric pain and TCM syndrome, which is significantly better than the positive control drug, with good safety and good clinical application value.
New varieties have been approved to enrich the company's product line, and the overall R & D work has been steadily promoted
Qirui Weishu Capsule has invested about 27.0482 million yuan in R & D. after being successfully approved for listing, it will further enrich the company's product line in relevant treatment fields and help to enhance the company's core competitiveness.
The overall R & D work of the follow-up company is progressing steadily, including the professional review of the drug review center after the application for production of Liwei capsule, a new class 1.1 traditional Chinese medicine; The phase III clinical research of Xiaoer Zhike syrup and Niuhuang Xiaoer antipyretic plaster is progressing smoothly.
The company's value is further recognized, and the only in vitro cultivation bezoar provider is extremely scarce
We believe that the market value of Jianmin Pharmaceutical Group Co.Ltd(600976) can not be viewed in a single way. It is divided into two parts, and the segment valuation is more reasonable. 1) 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. For the valuation of this part of equity value, please refer to the same scarce target Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) . 2) Main business: it belongs to OTC varieties of traditional Chinese medicine. The market space of a single variety can be further expanded, the contribution to net profit is stable, and the approved new revenue growth points of innovative traditional Chinese medicine. The OTC business of traditional brands is expected to improve the valuation.
Investment advice
We expect that the company's revenue from 2021 to 2023 will be RMB 3.27/39.7/4.58 billion respectively, with a year-on-year increase of 33.2% / 21.3% / 15.4% respectively, and the net profit attributable to the parent company will be RMB 3.3/4.3/540 million respectively, with a year-on-year increase of 124.3% / 30.4% / 24.2% respectively, corresponding to EPS of RMB 2.16/2.82/3.50 from 2021 to 2023, with a corresponding valuation of 37x / 28x / 23x. 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 statement
The company's performance is lower than expected; The growth rate of Jianmin Dapeng pharmaceutical industry was lower than expected; Brand promotion was not as expected.
