\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 211 Tibet Rhodiola Pharmaceutical Holding Company(600211) )
Core view
Event: on March 12, Tibet Rhodiola Pharmaceutical Holding Company(600211) released the annual report of 2021, with annual revenue of 2.139 billion yuan, a year-on-year increase of 55.75%; The net profit attributable to the parent company was 209 million yuan, a year-on-year decrease of 50.03%; The non net profit attributable to the parent company was 666938 million yuan, a year-on-year decrease of 81.74%; The net cash flow from operating activities was 367 million yuan, a year-on-year decrease of 14.39%.
Strong revenue growth, impairment of imdo assets and pressure on apparent profits. The company’s revenue was 2.139 billion yuan, with a year-on-year increase of 55.75%, with strong growth at the revenue end; The profit side is mainly affected by the impairment of imdo asset package, resulting in a year-on-year decrease of 50.03% in the apparent net profit attributable to the parent company. If the impact of asset impairment is added back, the company’s operating profit (after deduction) will increase by about 39% year-on-year. After the impairment of imdo of US $71 million (equivalent to RMB 458 million), the recoverable amount of imdo assets is US $58 million. According to the amortization of the remaining 14 years, only about US $4.14 million needs to be amortized every year. We believe that the one-time impairment of assets will reduce the pressure of amortization in the future and help the recovery of apparent profits.
The core product neoactivin maintained rapid growth. Neoactivin is the main product of the company and a class I new national biological product for the treatment of acute heart failure. In 2021, the revenue was 1.683 billion yuan, accounting for 78.7%, with a year-on-year increase of 75.6%. In December 2021, Xinhuosu renewed the national medical insurance (class B), and the payment price of 445 yuan (0.5mg / piece) remained unchanged, and the agreement was valid for 2 years; We believe that there will be no worries about the price reduction of Xinhuosu medical insurance this year and next. With the company’s continuous development of channels for hospitals above level II, Xinhuosu will continue to maintain rapid growth.
There are abundant drug production lines for heart failure. The company’s heart failure drug production line includes three major products, namely neoactivin for acute heart failure, which is mainly used for intravenous injection in hospitals above class II; Emdor (isosorbide mononitrate sustained release tablets) is an oral chemical, which is suitable for the long-term treatment of coronary heart disease, angina pectoris and chronic heart failure; Nordikang is a Chinese patent medicine, mainly composed of Rhodiola, including capsules and granules, and double cross varieties (prescription drugs and OTC), which is more convenient for patients to buy and take. The company has a rich drug product line for heart failure.
Profit forecast: we predict that from 2022 to 2024, the company’s revenue will be 2.847 billion yuan, 3.600 billion yuan and 3.696 billion yuan respectively, with a year-on-year increase of 33.1%, 26.4% and 2.7% respectively; The net profit attributable to the parent company was 736 million yuan, 962 million yuan and 994 million yuan respectively, with a year-on-year increase of 252.4%, 30.6% and 3.3% respectively. According to the previous closing price (38.42 yuan / share), the corresponding PE (2022e) is only 12.9 times, and the “buy” rating is given.
Risk tip: the epidemic situation in China affects hospital medication; Product quality risk; Systemic risk.
