\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 976 Jianmin Pharmaceutical Group Co.Ltd(600976) )
Events
On March 17, 2022, the company disclosed the annual report of 2021. The company achieved an operating revenue of 3.278 billion yuan in 2021, with a year-on-year increase of 33.48%. The net profit attributable to shareholders of listed companies was 325 million yuan, a year-on-year increase of 119.73%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 301 million yuan, a year-on-year increase of 118.56%. The basic earnings per share is 2.13 yuan / share. It is proposed to pay a cash dividend of RMB 8.06 (including tax) for every 10 shares.
Event comments
The overall performance is in line with expectations and keeps pace with industry and commerce
According to the announcement of pre increase of previous performance, the net profit attributable to the parent company is expected to be 318 million yuan ~ 333 million yuan. The disclosed net profit attributable to the parent company was 325 million yuan, which was located in the center of the range, in line with market expectations. Among them: Pharmaceutical Industry: according to the data caliber after deduction, the company realized an income of 1.68 billion yuan, with a year-on-year increase of 43.92% and a gross profit margin of 78.6%. Among them, the income of Pediatrics was 890 million yuan, a year-on-year increase of 48.3%; Gynecological revenue was 490 million yuan, a year-on-year increase of 37.7%; The income of characteristic traditional Chinese medicine was 160 million yuan, a year-on-year increase of 35.5%.
Pharmaceutical business: the revenue was 1.75 billion yuan, with a year-on-year increase of 17.0% and a gross profit margin of 5.6%.
Jianmin Dapeng: the net profit in 2021 was 343 million yuan, with a year-on-year increase of 18.5%. According to the shareholding ratio of 33.54%, the equity attributable to the listed company was 115 million yuan.
The gross profit margin increased significantly and the profit increased rapidly in the fourth quarter
The overall gross profit margin of the company was 43.49%, a year-on-year increase of + 2.85 percentage points; The expense rate during the period was 35.95%, with a year-on-year increase of -1.89 percentage points; Among them, the sales expense rate was 30.26%, with a year-on-year increase of – 1.80 percentage points; The management fee rate was 5.63%, with a year-on-year increase of -0.14 percentage points; The financial expense rate was 0.06%, year-on-year + 0.05 percentage points; The net operating cash flow was 259 million yuan, a year-on-year increase of + 106.46%.
Quarterly, the company’s Q1-Q4 single quarter revenue was 841 million yuan, 951 million yuan, 813 million yuan and 672 million yuan respectively, with a year-on-year growth rate of + 91.06, + 62.08, + 40.45 and – 20.89% respectively. The net profit attributable to the parent company in Q1-Q4 in a single quarter was RMB 70 million, RMB 97 million, RMB 90 million and RMB 68 million respectively, with a year-on-year growth rate of + 272.49, + 152.61, + 31.10 and + 207.72% respectively. Q1-Q4 net profit deducted from non parent company in a single quarter was 66, 93, 82 and 59 million yuan respectively, with a year-on-year growth rate of + 277.22, + 166.14, + 26.50 and + 194.76% respectively. The net profit attributable to shareholders of Listed Companies in the fourth quarter of 2021 decreased compared with the first three quarters, mainly due to the impact of the provision for impairment and the loss of changes in fair value at the end of the year. The loss of changes in fair value and credit impairment in 2021 totaled 8.6 million yuan.
OTC and prescription drugs work together, and the growth rate of e-commerce is bright
OTC: continue brand building, increase the advertising of the company’s gold single product Longmu Zhuanggu Granule, increase brand exposure and reputation, speed up channel construction, strengthen terminal control, and further improve product distribution rate and market share. Among them, the single product sales of Longmu increased by 47.75% year-on-year, and the overall OTC sales revenue was 904 million yuan, an increase of 51.28% year-on-year;
Prescription drugs: actively carry out evidence-based medicine research and academic marketing, and continuously enhance the medical value and market value of products. Rx product line Xiaojin capsule, Jianpi Sheng Xue granule (tablet), children Bao Taikang and Estradiol Gel kept growth, and realized Rx sales revenue of 779 million yuan, an increase of 36.23% over the same period last year. E-commerce business: rapid business development was achieved through product drainage, operation promotion and professional services, with a year-on-year increase of 177.10%.
Increase R & D efforts, new product R & D and project approval to increase the company’s power
In 2021, the company increased R & D investment, accelerated the R & D and project approval of new products, and orderly promoted the secondary development of old products. Throughout the year, the company obtained 1 new drug certificate, submitted 2 listing license applications and newly applied for 25 patents.
Throughout the year, 25 new drug R & D projects were carried out, including 5 new pediatric preparations. Liwei capsule, a new Chinese medicine of category 1.1, has obtained the registration certificate (the approved name is qiruiweishu capsule), Xiaoer Xuanfei Zhike syrup has completed the phase III clinical study, Niuhuang Xiaoer antipyretic plaster phase III clinical study has been promoted as planned, and Tongjiang granule has completed the preclinical study; Application for registration and marketing license for tomoxetine oral solution and lacosamide syrup of children’s preparation project; Three children’s preparation projects completed pilot study and three children’s preparation projects completed pre pilot test.
Investment advice
Due to the update of the company’s annual report, the previous profit forecast was adjusted. We expect that the company’s revenue from 2022 to 2024 will be RMB 4.0/4.69/5.54 billion respectively, with a year-on-year increase of 21.9% / 17.3% / 18.1%, the net profit attributable to the parent company will be RMB 4.2/5.3/660 million respectively, with a year-on-year increase of 29.5% / 25.2% / 24.8%, the corresponding EPS will be RMB 2.74/3.43/4.28, and the corresponding valuation will be 20x / 16x / 13X. 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 tips
The company’s performance is lower than expected; The growth rate of Jianmin Dapeng pharmaceutical industry was lower than expected; Brand promotion is not as expected.
