\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Event:
On March 26, 2022, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 14.603 billion yuan, a year-on-year increase of 13.86%, including 8.876 billion yuan for the pharmaceutical industry, a year-on-year increase of 15.99%, and 8.241 billion yuan for the pharmaceutical business, a year-on-year increase of 12.64%; The net profit attributable to the parent company was 1.227 billion yuan, a year-on-year increase of 19.00%. In the single quarter of 2021q4, the company realized an operating revenue of 3.92 billion yuan, a year-on-year increase of 3.90%; The net profit attributable to the parent company was 307 million yuan, a year-on-year decrease of 2.86%.
Comments:
We will thoroughly implement the big variety strategy and continue to strengthen precision marketing
The company thoroughly implements the large variety strategy, reasonably optimizes the allocation of resources, and comprehensively promotes unsaturated marketing through market control. Focus on large varieties, supplemented by the development of varieties, jointly support the market, implement “one policy for one district, one policy for one product”, and improve the proportion of terminal sales. In 2021, the revenue of the company’s top five categories of products was 4.116 billion yuan, a year-on-year increase of 15.41%, of which the revenue of cardiovascular and cerebrovascular products was 3.629 billion yuan, a year-on-year increase of 20.80%; The revenue of tonic products was 1.456 billion yuan, a year-on-year decrease of 2.6%; The revenue of heat clearing products was 524 million yuan, a year-on-year increase of 0.48%; Gynecological products achieved an income of 380 million yuan, a year-on-year increase of 23.83%.
Focus on R & D innovation and implement the high-quality strategy
In 2021, the company focused on the actual needs of production, operation and quality, and carried out research work around innovative product development, cultivation of famous and high-quality varieties, tackling key problems in production and quality, construction of traceability system, reserve of key technologies, inheritance and development of processing technology, etc. In 2021, the company invested 176 million yuan in R & D, with a year-on-year increase of 27.38%, forming an overall scheme of 16 key varieties, starting the research of 14 varieties such as Tongren Niuhuang Qingxin pill and Morinda officinalis oligosaccharide capsule, and deepening the cooperation with external scientific research institutions to promote the transformation of scientific research achievements.
Continue to promote the improvement of operation quality and stabilize the pharmaceutical business sector
In 2021, 42 subordinate stores of Beijing Tongrentang Co.Ltd(600085) commerce were added, and the opening speed was improved. By the end of 2021, there were 920 stores in total, of which 699 were qualified as “designated retail pharmacies of medical insurance” and 560 established traditional Chinese medicine clinics. The company continued to promote the improvement of operation quality and standardized the form of publicity and promotion through fine management. The expenses for advertising and promotion business were 141 million yuan, with a year-on-year increase of 29.51%.
Profit forecast and rating
The company thoroughly implements the large variety strategy, and its performance is expected to maintain steady growth. According to the performance of the company’s annual report in 2021, the net profit forecast for 20222023 is raised from RMB 1.463/1.737 billion to RMB 1.468/1.755 billion, and the net profit forecast for 2024 is RMB 2.06 billion, maintaining the “buy” rating.
Risk tips: policy change risk, raw material and quality standard risk, market risk
