\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 61 Changchun High And New Technology Industries (Group) Inc(000661) )
Event:
Recently, the company released its annual report for 2021. In 2021, it achieved an operating revenue of 10.747 billion yuan, a year-on-year increase of 25.30%, and a net profit attributable to the parent company of 3.757 billion yuan, a year-on-year increase of 23.33%. The net profit attributable to the parent company after deduction was 3.742 billion yuan, a year-on-year increase of 26.76%. In the fourth quarter, the company’s operating revenue was 2.508 billion yuan, a year-on-year increase of 15.17%, and the net profit attributable to the parent company was 610 million yuan, a year-on-year decrease of 22.4%.
Comments:
Growth hormone sales continued to grow at a high speed, and adult indications opened up and improved market space
The sales volume of growth hormone of the subsidiary kinsay pharmaceutical increased rapidly. In 2021, the operating revenue was 8.198 billion yuan (+ 41%), and the net profit attributable to the parent company was 3.684 billion yuan (+ 33%). Among them, ① the income from powder injection accounted for about 10%, and the income increased by nearly 40%; ② Water needle accounted for more than 70%, and the income increased by more than 30%; ③ The long-acting water needle accounted for more than 18% and the revenue increased by more than 110%. We believe that the company’s market promotion of long-acting growth hormone products is expected to continue to increase the proportion of long-acting products. The company has added a number of new indications for the treatment of idiopathic short stature and gradually expanded the indications related to adult growth hormone, with a broad market space.
The powder is selected from Guangdong centralized mining, and the water agent is oriented to non-public channels
Recently, the Guangdong Provincial Drug Trading Center publicized the results of the proposed winning / alternative of the centralized procurement of diclofenac and other drugs of Guangdong Alliance (the first batch), and the company successfully won the bid for growth hormone powder injection. Kinsay Pharmaceutical (three specifications: 10iu, 2.5iu and 4iu) has entered the list of proposed winners. There are 4 enterprises to be selected or selected for this volume procurement, involving a total of 10 products. As the powder injection accounts for a relatively small proportion of the company’s business and has limited influence, Changchun High And New Technology Industries (Group) Inc(000661) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) and Novo Nordisk, as the three major growth hormone suppliers in China, have abandoned the centralized collection of water injection, and the sales of water injection will turn to non-public hospital channels with broad market in the future.
Changchun Bcht Biotechnology Co(688276) sales are affected by the epidemic and promote the clinical research progress of live attenuated herpes zoster vaccine and other projects
The subsidiary Changchun Bcht Biotechnology Co(688276) 2021 achieved an operating revenue of 1.202 billion yuan (- 16.6%) and a net profit attributable to its parent of 244 million yuan (- 41.77%). The overall performance declined year-on-year, mainly due to the impact of the epidemic on the sales of nasal spray influenza vaccine and chickenpox vaccine, which is expected to recover in 2022. The company continued to increase R & D investment, promote the clinical research progress of live attenuated herpes zoster vaccine and other projects, and accelerate the key research projects such as all human anti rabies monoclonal antibody.
The real estate and traditional Chinese medicine businesses have stabilized, and all businesses have developed in a balanced manner
The company continued to lay out the traditional Chinese medicine and real estate sectors. In 2021, the operating revenue of its subsidiary Huakang pharmaceutical was 642 million yuan (+ 10%), and the net profit attributable to the parent company was 43 million yuan, with little change year-on-year. The operating income of high-tech real estate is 663 million yuan (- 8%), and the net profit attributable to the parent company is 86 million yuan (- 37%).
Profit forecast and investment rating: we expect the company’s operating revenue from 2022 to 2024 to be RMB 140.26/172.47/20.489 billion respectively, and the net profit attributable to the parent company to be RMB 5.035/62.04/7.443 billion respectively. Maintain the “buy” rating.
Risk tips: policy changes in the pharmaceutical industry, risk of product price reduction, failure of new product promotion to meet expectations, etc
