\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Event: the company released its annual report for 2021, realizing an operating revenue of 14.603 billion yuan (+ 13.86%); The net profit attributable to the parent company was 1.227 billion yuan (+ 19.00%); Deduct non net profit of 1.209 billion yuan (+ 19.52%).
The performance of the parent company has recovered significantly, and Beijing Tongrentang Co.Ltd(600085) technology capacity has been gradually released. Quarterly, the net profit attributable to the parent company in the fourth quarter of 2021 was 307 million yuan, a year-on-year decrease of 2.86%, mainly due to the recognition of 166 million yuan of asset impairment loss in the quarter, an increase of 63 million yuan year-on-year. In terms of business units, the parent company’s report (mainly joint-stock companies) revenue was 3.393 billion yuan (+ 14.57%), exceeding the peak revenue in 2018. The two-year compound growth rate from 2019 to 2021 was 7.4%, and the profit was 856 million yuan (+ 19.97%), indicating that the company’s marketing reform has achieved initial results after improving its quality management system and overcoming the impact of the epidemic Beijing Tongrentang Co.Ltd(600085) technology achieved an operating revenue of 5.4 billion yuan (+ 17.21%) and a net profit of 867 million yuan (+ 10.21%). In 2021, Daxing Branch and Beijing Tongrentang Co.Ltd(600085) technology Tangshan company reached full capacity, and the lack of capacity has been significantly improved Beijing Tongrentang Co.Ltd(600085) business realized an operating revenue of 8.325 billion yuan (+ 12.59%), a net profit of 309 million yuan (+ 16.91%), and the net interest rate has exceeded the level of 2019 before the epidemic. By the end of 2021, there were 920 retail stores and 42 new stores in the year, continuing to maintain a steady pace of expansion.
The income of cardio cerebrovascular category reached a new high, and the benefits category recovered smoothly. By category, the revenue of the pharmaceutical industry was 8.876 billion yuan (+ 16.0%), exceeding the peak in 2018 and reaching a record high; The gross profit margin was 48.13%, with a year-on-year increase of 1.04 percentage points. Cardio cerebrovascular category achieved an operating revenue of 3.630 billion yuan (+ 20.8%), with a two-year compound growth rate of 9.3% and a gross profit margin of 59.96% from 2019 to 2021, which was basically stable. Gynecology achieved an operating revenue of 380 million yuan (+ 23.8%), and the two-year compound growth rate from 2019 to 2021 was 10.76%. The business income of tonic products was 1.46 billion yuan (+ 2.9%). Beijing Tongrentang Co.Ltd(600085) science and technology disclosed in the 2021 annual performance announcement that “due to the change of drug regulatory policies, the listing of some products was delayed due to the revision of the manual of Liuwei Dihuang pill series products, and the sales volume of Liuwei Dihuang pill series decreased by 13.13% compared with the same period of last year”. We believe that the low growth rate of tonic products is related to this; Other tonic products such as Jinkui Shenqi Pill and donkey hide gelatin series still maintained steady growth. Heat clearing achieved an operating revenue of 524 million yuan (+ 5.2%), which was basically stable.
Profit forecast and Valuation: we believe that the company actively implements the large variety strategy, and the core varieties are expected to maintain steady growth in the future. It is estimated that the company’s revenue from 2022 to 2024 will be 16.326 billion yuan, 18.045 billion yuan and 19.846 billion yuan respectively, with a year-on-year increase of 11.9%, 10.5% and 10.0%; The net profit attributable to the parent company was 1.466 billion yuan, 1.695 billion yuan and 1.952 billion yuan respectively, with a year-on-year increase of 19.5%, 15.6% and 15.1%. Based on the closing price on March 25, the corresponding PE was 41, 35 and 30 times respectively. The “buy” rating was given for the first time.
Risk warning: the progress of state-owned enterprise reform is slow; Product quality risk; Covid-19 epidemic affected product sales and retail pharmacy operations
