\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Event: on March 25, 2022, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 14.603 billion yuan, a year-on-year increase of 13.86%; The net profit attributable to the parent company was 1.227 billion yuan, a year-on-year increase of 19.00%; The net profit deducted from non parent company was 1.209 billion yuan, with a year-on-year increase of 19.52%.
The performance is basically in line with expectations, and the pharmaceutical industry and pharmaceutical business have achieved steady growth. (1) Pharmaceutical industry: in 2021, the company's pharmaceutical industry sector achieved a revenue of 8.876 billion yuan, a year-on-year increase of 15.99%, and the gross profit margin reached 48.13%, a year-on-year increase of 104 PCT. In terms of products, the sales revenue of cardio cerebrovascular category was 3.629 billion yuan, a year-on-year increase of 20.80%, the sales revenue of tonic category was 1.456 billion yuan, a year-on-year decrease of 2.60%, the sales revenue of heat clearing category was 524 million yuan, a year-on-year increase of 0.48%, the sales revenue of gynecology category was 380 million yuan, a year-on-year increase of 23.83%, and the sales revenue of other categories was 2.887 billion yuan, a year-on-year increase of 18.90%. (2) Pharmaceutical business: in 2021, the company's pharmaceutical business segment achieved an operating revenue of 8.241 billion, a year-on-year increase of 12.64%, and the gross profit margin of pharmaceutical business was 31.51%, a year-on-year decrease of 0.65 PCT. By the end of the year, there were 560 designated medical clinics, of which, there were 691 retail medical companies with medical insurance qualification. From the distribution of store sales, the sales of traditional Chinese and Western medicine and decoction pieces accounted for 76.83%, health products and food accounted for 21.19%, and medical devices and others accounted for 1.98%.
The reform has achieved initial results, and the large variety strategy has been implemented. Various reforms of the company have achieved initial results, and the fine management ability has been continuously improved: the sales expense rate of the company in 2021 was 18.82%, a year-on-year decrease of 0.46 PCT in 2020; The management fee rate was 9.15%, a year-on-year decrease of 0.48 PCT in 2020; The turnover rate of accounts receivable reached 13.61 times, compared with 10.92 times in the same period in 2020; The inventory turnover rate reached 1.25 times and 1.13 times in the same period in 2020; The net cash flow from operating activities was 3.426 billion, an increase of 57.56% year-on-year in 2020. In 2021, the company continued to implement the large variety strategy: in terms of channel construction, each unit set up a special group for large varieties to carry out precision marketing around core varieties, give consideration to distribution channel management and market coverage, implement "one policy for one area, one product and one policy", increase advertising investment and improve brand influence; In terms of R & D layout, we are committed to the secondary development of large varieties, improve production technology, and further tap the clinical value of chronic diseases and other fields. 2022 is the last year of the three-year action of state-owned enterprise reform. The "4 + 2" special reform launched by the company in 2020 has achieved phased results. We expect that more reform achievements will begin to be realized in 2022.
Investment suggestion: we estimate that the company's operating revenue from 2022 to 2024 will be 16.740 billion, 18.985 billion and 21.532 billion respectively, and the net profit attributable to the parent company will be 1.506 billion, 1.770 billion and 2.038 billion respectively. The corresponding price earnings ratio (PE) will be 39.5 times, 33.6 times and 29.2 times respectively, giving the investment rating of overweight-a.
Risk warning: the promotion of large varieties is not as expected; The reform of state-owned enterprises is less than expected; Covid-19 epidemic uncertainty risk.
