\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 61 Changchun High And New Technology Industries (Group) Inc(000661) )
Event: on March 17, the company disclosed its 2021 annual report, which realized an operating revenue of 10.75 billion yuan during the period, with a year-on-year increase of 25.3%; The net profit attributable to shareholders of listed companies was 3.76 billion yuan, a year-on-year increase of 23.3%; The basic earnings per share is 9.28 yuan / share. The company’s profit distribution plan for 2021 is to distribute a cash dividend of 8.00 yuan (including tax) to all shareholders for every 10 shares.
Comments:
Many factors affected last year’s performance, which was lower than market expectations. The company’s revenue exceeded 10 billion yuan for the first time, reaching 10.75 billion yuan, a year-on-year increase of 25.3%, basically in line with expectations; The profit side achieved 3.76 billion yuan, a year-on-year increase of 23.3%, slightly lower than the market expectation. We have observed that there are many factors affecting the growth of apparent profits: first, we increased R & D investment last year, with a total R & D investment of 1.09 billion yuan, accounting for more than 10% of revenue, of which 885 million yuan was expensed (81% was expensed), with a year-on-year growth rate of 86.3%, affecting certain profits; Second, the Changchun Bcht Biotechnology Co(688276) performance of the core subsidiary declined greatly last year, which was mainly affected by the epidemic, and there were large asset impairment losses. We believe that increasing innovative R & D is a necessary means to support the development of the company in the future. Changchun Bcht Biotechnology Co(688276) affected by the epidemic, the decline in vaccine sales and vaccination is a temporary difficulty at a specific historical moment. We are optimistic that Kinsey and Baike will grow at the same pace this year.
The core subsidiary of Guangdong Jincai Pharmaceutical Co., Ltd. continued to grow. The annual revenue of kinsay pharmaceutical was 8.198 billion yuan, and the profit attributable to the parent company was 3.684 billion yuan, accounting for 76.3% and 98% of the overall revenue and profit of listed companies respectively. In terms of year-on-year growth, the revenue and net profit attributable to the parent increased by 41.3% and 33.4% respectively. In the case of frequent epidemic outbreaks in China last year, it still maintained a rapid growth rate. In January this year, the number of new pediatric patients increased by 50% year-on-year. Guangdong Liancai growth hormone landed, the company signed up for three specifications of powder injections, and all Chinese manufacturers of aquatic injection products abandoned the bid. Liancai had little impact on the growth hormone market pattern and the company’s revenue.
Profit forecast: we revised the profit forecast for 20222024, and expected the revenue to be 14.21 billion yuan, 17.45 billion yuan and 20.89 billion yuan respectively, with a year-on-year increase of 32.2%, 22.8% and 19.7% respectively; The net profit attributable to the parent company was 5.04 billion yuan, 6.35 billion yuan and 7.67 billion yuan respectively, with a year-on-year increase of 34.1%, 26.1% and 20.7% respectively. According to the previous closing price (175.99 yuan / share), the corresponding PE (2022e) is only 14 times, maintaining the “buy” rating.
Risk tips: new patients affected by the epidemic situation in China are included in the group; Intensified market competition; Product quality risk; The R & D progress is less than expected; Systemic risk.
