\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 196 Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) )
Performance review
On March 23, 2022, the company released its 2021 annual report. In 2021, the company achieved revenue, net profit attributable to parent company and net profit deducted from non net profit of 39.005/47.35/3.277 billion yuan respectively, with a year-on-year increase of 28.7%, 29.3% and 20.6%. The performance is in line with expectations.
Business analysis
Increased R & D, rapid and large-scale new products, and steady growth in the main business. (1) The company’s revenue growth rate of 28.7% in 2021 mainly comes from three sectors: Pharmaceutical 28.9 billion yuan, medical devices and medical diagnosis 5.938 billion yuan and medical and health services 4.118 billion yuan. (2) The company is able to maintain a growth rate of more than 28% in revenue and net profit under the condition that the stock varieties such as youlitong (non budesonide tablets) and Bangzhi (pivastatin calcium tablets) are included in centralized procurement and the sales price is under pressure; It is mainly due to the continuous high-volume contribution of new varieties such as hanlikang (rituximab injection), hantrazumab (trastuzumab for injection) and Sukexin (avatripopa maleate tablets); Among them, hanlikang’s revenue was 1.69 billion yuan, a year-on-year increase of 125.33%. Hanquyou and Su Kexin’s revenue were 930 million yuan and 426 million yuan respectively. (3) By the end of February 2022, the German mRNA vaccine introduced by the company had inoculated more than 20 million doses in Hong Kong, Macao and Taiwan to help fight the epidemic.
Innovative achievements will be implemented to benefit more patients; The sales of yikaida, China’s first cell therapy drug, has been steadily promoted.
(1) the company invested 4.975 billion yuan in R & D in 2021, with a year-on-year increase of 24.28%; Among them, the R & D cost was 3.359 billion yuan, a year-on-year increase of 36.1%. (2) By the end of February 2022, yikaida (akilunsai injection) of Fosun Kate, a joint venture company, has been listed in urban Huimin insurance and more than 40 Commercial Insurance in 23 provinces and cities, and 75 treatment centers have been recorded. (3) By the end of 2021, artesunate for injection independently developed by the company had sold more than 200 million tubes overseas and treated more than 48 million children with severe malaria worldwide.
With the promotion of international cooperation, covid-19 drug MPP license and leading mRNA technology platform need to be implemented.
(1) in January and March 2022, the company successively obtained the MPP license of covid-19 small molecule drug from Merck and Pfizer to produce API and finished drug. (2) According to the company’s announcement on May 9, 2021, its joint venture with biontech plans to obtain the internationally leading mRNA vaccine production technology and patent license once it is launched. We will pay close attention to the progress.
Profit forecast and investment suggestions
We expect that the company’s revenue in 2022 / 23 / 24 will be 44.856/51.674/59.683 billion yuan, the net profit attributable to the parent company will be 5.568/66.01/7.857 billion yuan and EPS will be 2.17/2.58/3.07 yuan. The current share price of the company corresponds to 23 / 20 / 16xpe in 22 / 23 / 24 and maintains the “buy” rating.
Risk tips
The risk that policies such as new drug R & D and listing process fail to meet expectations and centralized purchase affect the profitability of products
