\u3000\u3 China Vanke Co.Ltd(000002) 873 Guiyang Xintian Pharmaceutical Co.Ltd(002873) )
Main points:
Events
On March 24, 2022, the company disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 970 million yuan, a year-on-year increase of 29.15%, and the net profit attributable to shareholders of listed companies was 101 million yuan, a year-on-year increase of 35.76%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 938394 million yuan, a year-on-year increase of 32.21%. The basic earnings per share is 0.6193 yuan / share, and it is proposed to pay a cash dividend of 1.20 yuan (including tax) for every 10 shares.
Event comments
Under the epidemic situation, the performance increased steadily, and gynecological products contributed to the core income
From the point of view of products, Kun Tai capsule, Kushen gel and other gynecological products contribute to core revenue and continue to accelerate, sales revenue is 686 million yuan (70.78%), an increase of 31.83% over the same period last year. The sales revenue of Ningbitai Capsule and other urinary products maintained a steady growth, with a revenue of 202 million yuan (accounting for 20.82%), a year-on-year increase of 22.76%. The sales revenue of heat clearing and detoxification was 684653 million yuan, a year-on-year increase of 17.30%. The sales revenue of other categories maintained a rapid growth of 76.84% year-on-year.
The gross profit margin continued to rise and the expenditure was controlled steadily
The company’s profit continued to increase, with the gross profit margin of sales being 79.26%, up 1.28pct; The net profit from sales was 10.37%, up 0.5pct. The company’s expenditure is properly controlled, with the sales expense rate of 48.65% (-0.07pct) and the management expense rate of 15.95% (-0.27pct); The financial expense rate was 1.74% (+ 0.99pct), which was mainly due to the early receipt of the current civil trade discount interest in the same period of last year.
The R & D investment continued to increase, and the R & D of new drugs combined with the secondary development of mature products increased the driving force. The R & D cost of the company was 203766 million yuan, an increase of 53.26% year-on-year. Based on the three R & D platforms of Guiyang technology center, Shuofeng pharmaceutical and Haitian pharmaceutical, the company actively carried out the R & D of formula particles, classic prescriptions, listed varieties and new traditional Chinese medicine. Among them, three innovative Chinese medicine Yushu granule (after enterogastro paralysis), long Cen pelvic cavity Shu granule (pelvic inflammatory disease sequelae) and Ku Er Jie Yin gel (bacterial vaginosis) clinical research has been finished, and the production declaration information is being sorted out. The two development of Kun Tai capsule, Sophora flavescens gel, ningmatai capsule and Prunella vulgaris oral liquid four core mature products increased their commercial value. At present, the company has 11 national new drug certificates, 32 drug approval numbers and 36 invention patents; There are 445 varieties of traditional Chinese medicine formula granules, and 60 national standards have been filed; There are also many classic famous prescriptions under research, covering Gynecology, pediatrics, respiratory department, chronic diseases and other fields.
Continue to penetrate OTC and other sales channels, and the equity incentive guarantee three-year doubling plan
The company has strong sales promotion ability, layout in-hospital, OTC and other sales channels, continuously optimize the personnel structure of the market team, adhere to “stimulating the OTC channel market with clinical efficacy”, and continuously improve the product coverage of chain pharmacies. At present, OTC products cover more than 700 drug chain companies and more than 90000 stores, and have established long-term and stable business relations with the headquarters of more than 300 drug chain companies in China. Meanwhile, prescription drug products cover more than 12000 hospitals at or above the county (District) level, including more than 1300 tertiary hospitals. At the management level, the implementation of the equity incentive plan provides dynamic support and measure guarantee for the doubling of three-year performance, grants a total of 3.17 million restricted incentive shares to 60 management and technical backbone employees, and focuses on the company’s marketing and R & D system.
Investment advice
We expect the company’s revenue from 2022 to 2024 to be RMB 1.32216902095 billion respectively, with a year-on-year increase of 36.34% / 27.78% / 23.99% respectively. The net profit attributable to the parent company was 135 / 186 / 242 million yuan respectively, with a year-on-year increase of 34.46% / 37.51% / 30.15%, corresponding to PE of 29.17/21.21/16.30x and EPS of 0.82/1.12/1.46 yuan / share. Considering the company’s steady growth performance, rich R & D pipelines, the continuous penetration of OTC channels and the equity incentive plan to ensure the doubling of three-year performance, we maintain the “buy” investment rating.
Risk tips
Industry policy risk; Product R & D risk; Uncertainty of drug sales, etc.
