\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 976 Jianmin Pharmaceutical Group Co.Ltd(600976) )
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 3.278 billion yuan, a year-on-year increase of 33.48%; The net profit attributable to the parent company was 325 million yuan, a year-on-year increase of 119.73%; Deducting the net profit not attributable to the parent company was 301 million yuan, with a year-on-year increase of 118.56%, and the performance was expected to grow at a high speed.
Under lean production, the growth rate of net profit attributable to the parent company exceeded the revenue. In 2021, in the pharmaceutical industry, the company strengthened brand building and channel promotion and optimized sales strategy; In terms of pharmaceutical business, we strengthened the development of new varieties, actively arranged new businesses, and increased the sales revenue of the company’s main products. As the company vigorously promotes lean production and improves the gross profit margin of products, the growth rate of net profit attributable to the parent company in 2021 is much higher than that of revenue.
The four sectors of the pharmaceutical industry grew rapidly and the gross profit margin remained stable. According to the sub sectors of the pharmaceutical industry, the pediatrics, gynecology and traditional Chinese medicine sectors increased by 48.31%, 37.73% and 35.47% respectively year-on-year in 2021. The raw and auxiliary packaging materials of Pediatrics products were affected by the market price increase and the corresponding depreciation expenses increased, resulting in a slight decrease in the gross profit margin compared with the previous year.
OTC, RX and e-commerce multi-channel brand marketing have promoted the rapid growth of the pharmaceutical industry. In 2021, the company actively carried out multi-directional marketing. From the perspective of channels, OTC companies continued to build brands, strengthened channel terminal control, and further improved product distribution rate and market share; RX sector, the company actively carries out evidence-based medicine research and academic marketing; In the e-commerce sector, the company achieved rapid business development through product drainage, operation promotion and professional services, with a year-on-year increase of 177.10%.
The performance of Jianmin Dapeng, a joint-stock enterprise, increased steadily and continued to contribute to investment income. In 2021, Jianmin Dapeng achieved a net profit of 343 million yuan and contributed 113 million yuan of investment income, with a year-on-year increase of 18.42%.
Maintain the “buy” rating: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 421 / 524 / 641 million respectively, and the EPS will be 2.75/3.41/4.18 respectively, corresponding to P / E20 / 16 / 13X. In view of the company’s strong brand power, multi-channel marketing strength and the exclusivity of in vitro cultivation of bezoar business, 29x valuation was given in 2022, corresponding to the target price of 79.8 yuan, maintaining the “buy” rating.
Risk tips: policy change risk, R & D risk, raw material price risk and product concentration risk.
