\u3000\u3 China Vanke Co.Ltd(000002) 262 Jiangsu Nhwa Pharmaceutical Co.Ltd(002262) )
Jiangsu Nhwa Pharmaceutical Co.Ltd(002262) issue the 2021 annual report. In 2021, the company achieved an operating revenue of 3.936 billion yuan, a year-on-year increase of 17.09%; The net profit attributable to the parent company was 798 million yuan, a year-on-year increase of 9.46%; Deduct non net profit of 778 million yuan, with a year-on-year increase of 9.59%, and realize EPS of 0.79 yuan. Look at Q4 alone: the company achieved an operating revenue of 1.04 billion yuan, a year-on-year increase of 5.8%; The net profit attributable to the parent company was RMB 2.0 billion, a year-on-year decrease of 120.7%; The non net profit deducted by the parent company was 100 million yuan, a year-on-year decrease of 26.8%; EPS 0.12 yuan. The company released the performance forecast for the first quarter, and it is expected that the net profit attributable to the parent company will increase by 5-25% from January to March 2022
Viewpoint: the revenue side is in line with the expectation, the anesthesia line is bright, and the Q4 cost is high. We look forward to the promotion of R & D and the volume of new products in the future. The overall revenue of the company increased by 17.09%, which still maintained a rapid growth of more than 15% under the epidemic, in line with expectations. The revenue in the four quarters was 900 million, 960 million, 1.03 billion and 1.04 billion respectively, showing a trend of increasing quarter by quarter. Revenue by section:
The revenue of anesthesia line was 1.959 billion yuan (accounting for nearly 50%), with a year-on-year increase of 48.41%, mainly due to the recovery of operation volume and the pull of new products. The anesthesia line was quite bright.
The income of the spiritual line was 1.096 billion yuan, a year-on-year decrease of 9.56%, of which the centralized mining of aripiprazole and duloxetine had a great impact.
The income of nerve line was 158 million yuan, a year-on-year decrease of 15.44%, which was affected by the centralized mining of gabapentin.
The revenue of the commercial sector was 417 million yuan, a year-on-year increase of 13.66%, which was relatively stable.
The profit side grew steadily, and the overall performance met expectations. The growth rate of the company’s performance is 9.46%, and the annual performance previously predicted is 10-30%, which is slightly lower. The main reason is that the investment of various expenses in Q4 in 21 years is relatively large, including sales expenses of 580 million (Q3 is 360 million, Q4 in 20 years is 470 million, which has increased significantly year-on-year and month on month), and R & D expenses of 120 million in Q4 in 21 years (Q3 is 80 million, Q4 in 20 years is 70 million), resulting in lower profit growth than revenue growth, But the overall stability.
Financial indicators: the company’s sales expense ratio was 40.52%, an increase of 1.55pp compared with 38.97% in the same period of last year, mainly due to the new products just approved and the increase of promotion expenses. The management expense ratio of the company was 3.77%, and the management expense ratio decreased steadily. The company’s R & D expenses increased by 56.4% year-on-year, and the R & D expense rate was 8.93%, an increase of 1.62pp compared with 7.31% in the same period of last year, and the R & D investment continued to increase.
The research and development of the company has accelerated. In recent years, the new products approved successively include penehyclidine, sufentanil, alfentanilic acid, oxycodone injection, duloxetine enteric coated capsule, etc. The key innovative drug project under research, oxalidine fumarate (trv-130), has been declared for production; Key projects of improved new drugs include nh510, ketamine hydrochloride (R) nasal spray, ketamine hydrochloride (R) injection, etc; With the approval and marketing of these products, the company will further consolidate its leading position in China in the field of central nervous drugs.
Profit forecast and valuation. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 920 million yuan, 1.12 billion yuan and 1.36 billion yuan respectively, with an increase of 15.1%, 22.4% and 20.7% respectively. EPS is 0.91 yuan, 1.12 yuan and 1.35 yuan respectively, and the corresponding PE is 14x, 11x and 9x respectively. We are optimistic about the long-term development of the company and maintain the “buy” rating.
Risk warning: the progress of product approval is lower than expected; Risk of failure in innovative drug research and development.
