\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 976 Jianmin Pharmaceutical Group Co.Ltd(600976) )
Event:
On March 18, 2022, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 3.278 billion yuan, with a year-on-year increase of 33.48%, including a year-on-year increase of 43.92% for the pharmaceutical industry and 24.48% for the pharmaceutical business; The year-on-year growth of RMB 11.93 billion was mainly due to the year-on-year increase in the net profit of the parent company, such as Mulong granules. In the single quarter of 2021q4, the company achieved an operating revenue of 672 million yuan, a year-on-year decrease of 20.89%; The net profit attributable to the parent company was 68 million yuan, a year-on-year increase of 207.72%.
Actively carry out brand marketing, and the core varieties perform well
In 2021, the company’s revenue from the pharmaceutical industry reached 1.682 billion yuan, with a year-on-year increase of 43.92%, mainly due to the company’s active brand marketing and building core varieties. In 2021, the company continued to increase the advertising of Longmu Zhuanggu granules, a single product of gold, increase brand exposure and reputation, accelerate channel construction, and further improve the product distribution rate and market share. In 2021, the sales of Longmu single products increased by 47.75% year-on-year, and the OTC sales revenue increased by 51.28% year-on-year; In terms of Rx marketing, the company actively carried out evidence-based medicine research and academic marketing, continuously enhanced the medical value and market value of products, and Rx sales revenue increased by 36.23% year-on-year.
We will continue to promote R & D and innovation and accelerate the cultivation of new products
In 2021, the company increased R & D investment, accelerated the R & D and project approval of new products, carried out 25 new drug R & D projects throughout the year, and obtained the registration certificate of Liwei capsule (the approved name is qiruiweishu capsule). At the same time, the company accelerated the cultivation of new products, held several brand press conferences nationwide, increased the advertising of biantong capsule products, rapidly promoted the listing and sales of biantong capsule (OTC channel), Jianmin throat tablets (new packaging) and other products, and made every effort to create the second growth curve of the company’s products. In 2021, biantong capsule achieved sales of 5.6743 million boxes, a year-on-year increase of 29.66%; Jianmin throat tablets sold 3.4812 million boxes, a year-on-year increase of 17.32%.
The participating subsidiaries have benefited from the scarcity of bezoar for a long time and are expected to continue to contribute to the investment income
Wuhan Jianmin Dapeng, a joint-stock subsidiary of the company, has the exclusive intellectual property rights of the in vitro cultivation of bezoar, a class 1 new drug of national traditional Chinese medicine. It is the largest industrialization base of in vitro cultivation of bezoar in China. In 2021, Jianmin Dapeng achieved a net profit of 343 million yuan, with a year-on-year increase of 18.45%. Benefiting from the scarcity of natural bezoar resources, Jianmin Dapeng is expected to continue to contribute to stable investment income.
Profit forecast and rating
The company’s core varieties continue to make efforts, and its performance is expected to maintain steady growth. According to the performance of the company’s annual report in 2021, the net profit forecast for 20222023 is raised from RMB 424 / 520 million to RMB 430 / 536 million, and the net profit forecast for 2024 is RMB 647 million, maintaining the “buy” rating.
Risk tips: policy change risk, product concentration risk, company product price decline risk, raw and auxiliary material price fluctuation risk, R & D risk
