\u3000\u30003 Hunan Yujing Machinery Co.Ltd(002943) 00294)
Event:
1) the company released its 2021 annual report, with an operating revenue of 2.651 billion yuan, a year-on-year increase of + 5.47%; The net profit attributable to the parent company was 345 million yuan, a year-on-year increase of + 32.48%; Deduct the net profit not attributable to the parent company of 293 million yuan, a year-on-year increase of + 18.00%; Net operating cash flow was 1.345 billion yuan, a year-on-year increase of + 87.23%; EPS0. 79 yuan. The performance is in line with market expectations.
2) the company issued the feasibility study report on the construction project of blood products intelligent factory (phase I).
Comments:
The provision for impairment affected the current profit, and the blood products recovered steady growth: from 2021q1 to Q4, the company’s single quarter operating revenue was 6.24/6.71/7.17/639 million yuan respectively, with a year-on-year increase of + 2.38% / + 9.61% / + 8.43% / – 2.56%; The net profit attributable to the parent company was 101 / 0.97 / 1.26/0.21 billion yuan, a year-on-year increase of + 5.04% / 48.71% / 100.36% / – 41.78%; Deduct the net profit not attributable to the parent company of RMB 99 / 0.96 / 124 / – 25 million, a year-on-year increase of + 12.38% / + 47.10% / + 95.32% / – 179.64%. The negative growth of Q4 profit is mainly due to the provision of RMB 75034400 for impairment of various assets in 2021. The non recurring profit and loss is 51 million yuan, including 32 million yuan of investment income from financial management income and dividends of investment companies, and 11 million yuan of income from changes in fair value of investment companies. The substantial increase in net cash flow from operating activities was mainly due to the recovery of advance payment for Danxia biological plasma. The net cash flow from financing activities was 2.032 billion yuan, from negative to positive, mainly due to the directional issuance of shares to China Resources Pharmaceutical Holdings. By business segment:
Blood products business (parent company Boya Bio-Pharmaceutical Group Co.Ltd(300294) ): operating revenue of 1.232 billion yuan, a year-on-year increase of + 34.94%; The net profit was 385 million yuan, a year-on-year increase of + 125.45%. As the impact of covid-19 epidemic tends to be gentle, the company’s blood product sales return to normal growth, and the sales proportion of high gross profit varieties increases. Jingbing’s sales revenue was 364 million yuan, a year-on-year increase of + 29.16%; The sales revenue of human albumin was 358 million yuan, a year-on-year increase of + 21.06%; The sales revenue of human fibrinogen was 417 million yuan, a year-on-year increase of + 80.99%; The business income of other blood products was 72 million yuan, a year-on-year increase of – 16.22%. At present, the company has 14 single plasma collection stations. In 2021, about 420 tons of raw plasma will be collected. PCC will be newly listed in 2021 and factor VIII will be listed in 2022. In the future, new products will be continuously listed and the production line will be enriched.
Diabetes business (Tianan pharmaceutical): operating income of 238 million yuan, up -25.72%; The net profit was 32 million yuan, a year-on-year increase of – 39.52%. The negative growth of performance is mainly due to the decline of sales volume and gross profit margin due to the impact of centralized purchase of products;
Biochemical medicine business (Xinbai pharmaceutical): the operating revenue was 511 million yuan, a year-on-year increase of – 19.47%; The net profit was 39 million yuan, a year-on-year increase of – 39.44%. The negative growth of performance is mainly due to the decline of sales due to the intensification of market competition and centralized purchase;
Drug distribution business (Fuda pharmaceutical): the operating revenue was 664 million yuan, a year-on-year increase of + 3.74%; The net profit was 44 million yuan, a year-on-year increase of + 11.73%. Profit growth was higher than revenue, mainly due to the significant year-on-year decrease in donation expenditure;
Chemical medicine business (Xinhe pharmaceutical): the operating revenue was 30 million yuan, a year-on-year increase of + 14.84%; The net profit was – 106 million yuan, and the loss expanded. The main reason for the loss is that the production of API varieties has not been realized on a large scale, the gross profit of sales can not fully digest the depreciation of fixed assets, and the provision for impairment of various assets in 2021 is made at the same time. Expand the production of smart factory and fully digest the growth of plasma volume: the total investment of the factory project is 3.097 billion yuan, including 2.047 billion yuan for project construction and 1.05 billion yuan for initial working capital of the project. The source of funds is 996 million yuan raised by the company in 2018 and self raised funds. The designed annual slurry input of the new plant is 1800 tons, which is significantly expanded compared with the previous scheme. With the approval of Shanxi Provincial Health Commission in December 2021, the company agreed to set up single plasma collection stations in Yangcheng County (under construction), the number of plasma stations of the company will increase to 14, and strive to achieve more than 30 plasma stations and more than 1000 tons of plasma collection scale during the 14th Five Year Plan period. At present, the maximum production capacity of the company’s production workshop is 600 tons of plasma, which is difficult to match the growth of plasma volume. The smart factory project will greatly improve the company’s future slurry feeding capacity, ensure long-term healthy development, and demonstrate the company’s sufficient confidence. The company estimates that the average annual operating income (excluding tax) of the project is 5.332 billion yuan.
Profit forecast, valuation and rating: considering that the company’s non blood products business is more affected by centralized purchase and other factors than we had expected, the forecast of net profit attributable to the parent company from 2022 to 2023 is lowered to 511 / 606 million yuan (the original forecast is 541 / 681 million yuan, down 6% / 11% respectively), and the new forecast of net profit attributable to the parent company in 2024 is 725 million yuan. According to the latest equity calculation, EPS is 1.00/1.19/1.42 yuan respectively, and the current price corresponding to PE is 32 / 27 / 23 times respectively, Maintain the “buy” rating.
Risk warning: the slurry recovery is lower than expected; The progress of developing blood products is slower than expected; The risk of lowering the price of diabetes or biochemical drugs.
