At the beginning of the new year, there are mixed feelings for Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) investors who are about to usher in the first trading day of 2022.
The company issued two announcements on the evening of January 3: first, in the fourth quarter of 2021, the provision for asset impairment of Suzhou Huanchen, a wholly-owned subsidiary, was RMB 121 million; Second, the listing application of enaestat tablets was accepted by the State Food and drug administration.
In the face of these two hot news, the stock bar exploded. For the provision for asset impairment, some investors summarized the long and short views. Many parties: “Huan Chen’s thunder is finally discharged, and he can go into battle with light equipment in the future”; Kong Fang: “Huan Chen hasn’t burst yet. He was beaten up in the new year. It’s over.” For the second news, some investors commented: “the company has entered the drug delivery cycle.”
On December 31, 2021, Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) shares were reported at 27.32 yuan / share, with a market value of over 30 billion yuan. As of November 29, 2021, the number of shareholders of the company has reached 37600.
the “failure” of centralized mining suffered heavy losses
In view of the provision for asset impairment, the company explained in the announcement that since January 2021, the national centralized procurement of coronary stents has been officially implemented and strictly implemented in all localities. Hospitals at all levels in some provinces and cities (such as Hebei, Tianjin, etc.) have basically purchased all the winning stents for centralized procurement, and the market space outside centralized procurement has shrunk significantly; At the same time, the repeated and sporadic outbreaks of local epidemics make the amount of elective surgery lower than expected, resulting in the difference between the actual sales quantity and sales price of alpha stent in 2021 and that expected last year. It is expected that the profitability of Suzhou Huanchen will still be adversely affected in the future, and the sustainability of the adverse impact is uncertain.
In the fourth quarter of 2021, the company made an impairment provision of 121 million yuan for the intangible assets of Huanchen asset group. After the withdrawal, the net book value of intangible assets in Suzhou Huanchen asset group is 0 yuan.
In fact, the company has accrued asset impairment for Suzhou Huanchen more than once. In October 2021, the company announced that in the third quarter of 2021, the company accrued impairment of inventories and fixed assets of RMB 13.0589 million and RMB 8.3913 million respectively, totaling RMB 21.4502 million. Among them, Suzhou Huanchen alphastent scaffold materials and finished products have withdrawn 12.95 million yuan of inventory falling price reserves due to near validity.
The provision of asset impairment for many times should start from the “failure” of the company’s participation in the national centralized procurement of coronary stents. In 2018, in order to improve the company’s product line in the cardiovascular field, Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) transferred 100% equity of Suzhou Huanchen held by the transferor in stages with its own capital of 473 million yuan.
According to public information, Suzhou Huanchen was established in 2008. The company’s main product is “alpha stent drug-eluting coronary stent system”, and obtained the medical device registration certificate in 2015.
Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) emphasizes the synergy between the above assets and the company’s business. Alpha stent will cooperate with Taijia, taijianing and other excellent products of the company to form a pharmaceutical and mechanical synergy, provide a comprehensive treatment scheme for PCI surgery, and improve the company’s position as a comprehensive solution in the cardiovascular field.
However, in October 2020, the centralized procurement of coronary stents organized by the state was officially launched, and the company’s products finally failed to meet the standard, which also means that the market share has shrunk sharply.
Affected by this, on December 12, 2020, Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) announced that due to the covid-19 pneumonia epidemic and the failure to win the bid for centralized coronary stent procurement organized by the state in November, the future operating profit of Suzhou Huanchen was adversely affected, and the sustainability of the adverse impact was uncertain. Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) the goodwill impairment of Suzhou Huanchen will be RMB 283 million.
The large provision for goodwill impairment in 2020 directly reduced the net profit of Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) by more than 90%. However, the provision for asset impairment in October 2021 has little impact on the company’s performance in the first three quarters of 2021. According to the third quarterly report of 2021, the company achieved an operating revenue of RMB 2.187 billion in the first three quarters, a year-on-year increase of 2.50%; The net profit attributable to shareholders of listed companies was 392 million yuan, a year-on-year increase of 46.53%.
Some brokers believe that Taijia, the company’s core products, and coronary stent lost their standards for centralized purchase, and other major imitation products have basically been included in centralized purchase. Coupled with the impact of the epidemic, the performance in 2020 is the lowest stage in history. The company has gradually emerged from these impacts. With the approval of innovative drugs for listing, it is expected to return to the rapid growth stage in 2021.
The application for listing of 3 billion varieties was accepted
Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) was established in 1998 and landed on the small and medium-sized board of Shenzhen Stock Exchange in 2009. The main business of the company and its subsidiaries involves the R & D, production and sales of drugs and medical devices. The main products and projects under research include cardiovascular drugs and medical devices, cephalosporin antibiotics and raw materials, orthopedic drugs, etc., covering the treatment fields of cardiovascular, hypoglycemic, orthopedics, anti-tumor, anti infection and so on.
In the past 20 years, Taijia has always been the main source of revenue and profit of the company. In 2017, Taijia’s sales are expected to be 3 billion yuan, accounting for 88% of the sales of the preparation sector. In September 2019, “4 + 7” procurement with volume expanded nationwide, and Taijia lost its bid, which had a great impact on the company’s performance in 2020.
In recent years, the company has strengthened its transformation to an innovative pharmaceutical enterprise through independent research and development and introduction.
The company’s listing application was accepted. The product ennastat tablet is an oral small molecule innovative preparation against renal anemia. The developed indication is renal anemia. Compared with the existing therapies, ennastat tablets have a clear mechanism to improve anemia, which can not only promote the production of endogenous erythropoietin, but also improve the utilization of iron; It has good safety and effectiveness, and can significantly improve patient compliance. The company purchased from Japan Tobacco Inc in December 2019. If it is introduced into China and approved for listing, it is expected to be the second hif-phi drug to be listed in China. Guosheng securities expects that the peak sales of ennastat tablets is expected to exceed 3 billion yuan.
Guosheng Securities said that the company’s layout focuses on hypertension, heart failure, nephropathy, orthopedics and other fields, the competition pattern is relatively good, and the innovation pipeline is about to enter the harvest period. The peak sales of two heavy varieties in the field of heart failure of the company is expected to exceed 4 billion yuan: s086 (Arni has become the latest first-line drug in the field of heart failure) and sal007 (China US double report, and there is no drug with the same target listed outside China). It is one of the few enterprises in China with innovative drug layout in the field of heart failure.
(China Securities Journal)
