\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Events
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 shareholders of listed companies was 1.227 billion yuan, a year-on-year increase of 19.00%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 1.209 billion yuan, a year-on-year increase of 19.52%; The basic earnings per share is 0.90 yuan. The company plans to distribute a cash dividend of 2.9 yuan (including tax) for every 10 shares.
Event comments
Revenue grew steadily, and cardio cerebrovascular increased by 20.8% year-on-year
In terms of main business, the revenue of pharmaceutical industry was 8.876 billion yuan, with a year-on-year increase of 15.99%, and the gross profit margin was 48.13%, with a year-on-year increase of 1.04 percentage points. The pharmaceutical business income was 8.241 billion yuan, a year-on-year increase of 12.64%, and the gross profit margin was 31.51%, a year-on-year decrease of 0.65 percentage points.
The revenue of the first five series was 4.116 billion yuan, a year-on-year increase of 15.41%, accounting for 28% of the overall revenue, and the gross profit margin was 59.19, an increase of 0.03 percentage points. Among them, the operating revenue of cardio cerebrovascular category was 3.629 billion yuan, a year-on-year increase of 20.8%. The operating income of benefits was 1.456 billion yuan, a year-on-year decrease of 2.6%. The operating income of heat clearing was 524 million yuan, an increase of 0.48% year-on-year. The operating income of gynecology was 380 million yuan, a year-on-year increase of 23.83%. Other operating income was 2.887 billion yuan, an increase of 18.9% year-on-year. Geographically, China’s revenue was 13.593 billion yuan, a year-on-year increase of 13.85%; Overseas revenue was 907 million yuan, a year-on-year increase of 15.43%.
The expense side is stable, the operating cash flow is healthy, and it declined in the fourth quarter affected by the epidemic
The overall gross profit margin of the company was 47.62%, year-on-year + 0.58 percentage points; The expense rate during the period was 29.38%, with a year-on-year increase of -0.34 percentage points; Among them, the sales expense rate was 18.82%, with a year-on-year increase of -0.46 percentage points; The management expense ratio was 10.35%, with a year-on-year increase of -0.36 percentage points; The financial expense rate was 0.20%, year-on-year + 0.48 percentage points; The net operating cash flow was 3.426 billion yuan, a year-on-year increase of + 57.56%. On a quarterly basis, the company’s Q1-Q4 single quarter revenue was 3.706 billion yuan, 3.653 billion yuan, 3.324 billion yuan and 3.920 billion yuan respectively, with a year-on-year growth rate of + 22.33, + 22.84, + 8.99 and + 3.90% respectively. The Q1-Q4 single quarter net profit attributable to the parent company was 318 million yuan, 306 million yuan, 296 million yuan and 307 million yuan respectively, with a year-on-year growth rate of + 33.24, + 26.61, + 26.12 and – 2.86% respectively. The net profit deducted from non attributable to the parent company in Q1-Q4 single quarter was 317 million yuan, 300 million yuan, 293 million yuan and 300 million yuan respectively, The year-on-year growth rates were + 31.68, + 27.41, + 27.98 and – 2.35% respectively.
The participating subsidiaries achieved stable growth
Beijing Tongrentang Co.Ltd(600085) technology realized an operating revenue of 5400486600 yuan, a year-on-year increase of 17.21%; The operating profit was 1045183900 yuan, a year-on-year increase of 9.67%; The net profit was 8668441 million yuan, a year-on-year increase of 10.21%.
Beijing Tongrentang Co.Ltd(600085) Sinopharm in 2021 Beijing Tongrentang Co.Ltd(600085) Sinopharm achieved an operating revenue of 12917602 million yuan, a year-on-year increase of 10.37%, an operating profit of 645345600 yuan, a year-on-year increase of 5.02%, a net profit of 540324700 yuan, a year-on-year increase of 7.06%, a total asset of 3135481500 yuan at the end of the reporting period, an increase of 9.03% over the beginning of the reporting period.
Beijing Tongrentang Co.Ltd(600085) business realized an operating income of 8325183100 yuan, a year-on-year increase of 12.59%; The operating profit was 4202959 million yuan, a year-on-year increase of 14.77%; The net profit was 309230500 yuan, a year-on-year increase of 16.17%; The total assets at the end of the reporting period were 6024581 million yuan, an increase of 38.63% over the beginning of the reporting period.
The retail end continues to expand and the R & D end continues to advance
Retail stores: as of the end of the reporting period, Beijing Tongrentang Co.Ltd(600085) commerce had set up 920 retail stores, and 42 new stores were set up during the reporting period. The sales revenue of retail pharmacies from the sale of Chinese and Western patent medicines and decoction pieces accounted for 76.83% of the total retail revenue, followed by health products and food. Retail pharmacies purchased Chinese and Western patent medicines and decoction pieces from the top five suppliers in 2021, totaling about 3.087 billion yuan, an increase of 19.37% over the same period last year. Among the retail pharmacies, 560 have set up TCM medical clinics, 699 have obtained the qualification of “designated retail pharmacies for medical insurance”, and the designated pharmacies with medical insurance account for 75.98% of the total number of stores.
In terms of scientific research and development, the R & D cost was 176 million yuan, a year-on-year increase of 27.38%, accounting for 1.20% of the operating revenue. Throughout the year, the company carried out research on innovative product development, cultivation of famous and high-quality varieties, tackling key problems in production and quality, construction of medicinal material traceability system, common technology reserve and inheritance and development of processing technology. According to the catalogue of classic famous prescriptions, 10 varieties developed in advance are selected and determined, and the safety evaluation and stability research of many classic famous prescriptions such as Taohong Siwu Decoction and Linggui Zhugan decoction are actively promoted. The production and transformation of products is in progress. Continue to promote the phase III clinical research of new drugs of Qingnaoxuanqiao dropping pills, complete the enrollment of 78 cases, cultivate compound new drugs with independent intellectual property rights, and broaden the product chain in the field of treating cardiovascular and cerebrovascular diseases. Carry out the secondary development and research of Tongren Niuhuang Qingxin pill, Angong Niuhuang Pill, Tongren Wuji Baifeng pill, Morinda officinalis oligosaccharide capsule and Wuziyanzong pill.
Investment advice
Due to the update of the company’s annual report, the previous profit forecast was adjusted. We expect that the company’s revenue from 2022 to 2024 will be RMB 17.09/197.4/22.75 billion respectively, with a year-on-year increase of 17.0% / 15.5% / 15.3%, the net profit attributable to the parent company will be RMB 1.57/17.7/2.02 billion respectively, with a year-on-year increase of 27.5% / 12.9% / 14.5%, the corresponding EPS will be RMB 1.14/1.29/1.47, and the corresponding valuation will be 38x / 34x / 29x. Maintain the “buy” investment rating.
Risk tips
Price fluctuation of raw materials; The price increase of core varieties is less than expected; Marketing reform was less than expected.
