\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 976 Jianmin Pharmaceutical Group Co.Ltd(600976) )
Event:
Jianmin Pharmaceutical Group Co.Ltd(600976) announcement: in 2021, the company achieved revenue of 3.278 billion yuan (+ 33.48%), net profit attributable to parent company of 325 million yuan (+ 119.73%), and net profit not attributable to parent company of 301 million yuan (+ 118.56%).
Key investment points:
The annual performance increased sharply, and the profit side grew brightly. In 2021, the company achieved a revenue of 3.278 billion yuan (+ 33.48%), a net profit attributable to the parent company of 325 million yuan (+ 119.73%), and a net profit not attributable to the parent company of 301 million yuan (+ 118.56%). Among them, the income of pharmaceutical industry was 1.682 billion yuan (+ 43.92%), and the income of pharmaceutical business was 1.588 billion yuan (+ 23.87%).
The income of the pharmaceutical industry increased rapidly, and Longmu grew steadily. In 2021, the company achieved a revenue of 1.682 billion (+ 43.92%) in the pharmaceutical industry; Among them, OTC revenue was 904 million yuan (+ 51.28%), and Rx revenue was 779 million yuan (+ 36.23%). Longmu grew steadily. According to the company’s annual report, the sales of Longmu single products increased by 47.75% year-on-year in 2021; In terms of sales, Longmu Zhuanggu granules sold 486 million bags, a year-on-year increase of 29.15%. In recent years, the company has strengthened brand building and channel promotion to promote the simultaneous rise of volume and price of some products.
The high income of Pediatrics and the rise of packaging materials increase the cost. In terms of treatment areas, the revenue of Pediatrics / gynecology / characteristic traditional Chinese medicine / others reached RMB 891 / 4.94 / 1.59/138 million respectively, with a year-on-year increase of 48.31% / 37.73% / 35.47% / 50.21% respectively. Among them, the raw and auxiliary packaging materials of pediatric products in the reporting period were affected by market price rise factors, resulting in an increase in material costs compared with the previous period; The transformation of equipment and production line invested in pediatric leading products has been basically completed, and the corresponding depreciation expenses have increased.
Jianmin Dapeng continuously contributes profits. According to the company’s financial report, the company’s investment income in associates and joint ventures in 2021 was about 112 million yuan (mainly from Jianmin Dapeng), with a year-on-year increase of about 18.43%; Quarterly, the investment income of 2021q1 / Q2 / Q3 / Q4 to associates and joint ventures is about 3078 / 2890 / 3453 / 18260000 yuan respectively, with a year-on-year increase of about 485% / (- 46%) / 52% / 35% (Note: Q1 data is the investment income in the financial statements).
Significant brand advantages, steady growth of large single products, Jianmin Dapeng’s continuous contribution to profits, and optimistic about the stability of the company’s long-term performance. The company has three brands: Jianmin, Longmu and ye Kaitai, with significant brand advantages. The quantity and price of Longmu Zhuanggu Granule, the exclusive large single product of Pediatrics, have increased steadily. With the increase of the company’s marketing investment and the further penetration of brand publicity, we can see the sustainable growth of Longmu Zhuanggu Granule. Jianmin Dapeng is the only manufacturer and supplier of in vitro cultured bezoar in China, which will contribute to the continuous profit growth of the company.
The profit forecast and investment rating are expected to be RMB 2.53/3.12/3.83 from 2022 to 2024 respectively, corresponding to 22 / 17 / 14 times of the current share price PE. The company has significant brand advantages, steady growth of large single products, Jianmin Dapeng continues to contribute profits, is optimistic about the stability of the company’s long-term performance and maintains the buy rating.
The risk suggests that the sales of Longmu Zhuanggu Granule is less than expected; Price reduction risk of centralized purchase; The epidemic affects the operation of pharmaceutical business; Increased competition; Macroeconomic development is less than expected; Medical policy risks, etc
