\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 196 Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) )
[key points of investment]
The performance exceeded our expectations. Recently, the company issued an annual report. In 2021, the revenue reached 39.005 billion yuan, a year-on-year increase of 28.70%; The net profit attributable to the parent company was 4.735 billion yuan, a year-on-year increase of 29.28%; The net profit deducted from non profits was 3.277 billion yuan, an increase of 20.60% year-on-year. The company’s performance exceeded our expectations and the overall profitability improved.
Significant innovation and transformation, and sustained performance growth brought by new drugs. The company’s pharmaceutical business achieved a revenue of 28.904 billion yuan, a year-on-year increase of 32.10%; The gross profit margin was 52.12%, a year-on-year decrease of 8.27pct. The revenue of device and diagnosis business was 5.938 billion yuan, a year-on-year increase of 13.82%; The gross profit margin was 48.77%, a year-on-year decrease of 2.89pct. Medical service revenue was 4.118 billion yuan, a year-on-year increase of 29.82%; The gross profit margin was 19.06%, a year-on-year decrease of 1.46pct. The company’s revenue from new and secondary products, including fubitai, hanlikang, hanquyou and Su Kexin, accounts for more than 25% of the revenue in the pharmaceutical business, effectively alleviating the pressure on the sales price caused by the centralized purchase of stock varieties such as youlitong and Bangzhi. Hanquyou achieved an annual sales revenue of 1.69 billion yuan, a year-on-year increase of 125.33%. Hanlikang is 930 million yuan and Su Kexin is 426 million yuan.
The rate of R & D expenses increased steadily. The company continued to increase R & D investment, with a total R & D investment of 4.975 billion yuan, a year-on-year increase of 24.28%; The R & D cost was 3.834 billion yuan, a year-on-year increase of 1.039 billion yuan, a year-on-year increase of 37.17%. The company has increased its investment in the research and development of biological drugs and small molecule innovative drugs, as well as in the Innovation Incubation Platform. The company has rich R & D pipelines to provide power support for the future. The gross profit margin of the company was 48.14%, a year-on-year decrease of 6.55pct; The net interest rate was 12.14%, with a year-on-year increase of 0.05pct; In the 21st year, the company’s sales / management / Finance / R & D expense rates were -3.60pct / – 1.53pct / – 1.20pct / + 0.61pct respectively.
Covid-19 MPP license is expected to bring performance increment. The company has obtained the authorization of covid-19 oral drug MMP from MSD and Pfizer, which is expected to bring performance increment. The API and preparation products of molnupiravir, a covid-19 oral drug of MSD, were supplied in 105 low-income countries and regions around the world, and the API and preparation of nirmatrelvir, one of the paxlovid components of Pfizer covid-19 oral drug, were supplied to 95 low-income countries and regions. With the normalization of covid-19 epidemic, covid-19 MPP license is expected to bring new performance increment to the company.
Recently, PD-1 has been approved to be listed, and it is expected to continue to be overweight and internationalized. The first indication (for the treatment of highly microsatellite unstable (MSI-H) solid tumors) of the PD-1 inhibitor Sullivan was approved for listing on March 24, and the application for listing and registration of the second indication (squamous non-small cell lung cancer) has been accepted. The company has established a full-time marketing team of 200 people for Sullivan, and PD-1 is expected to be sold in the second half of the year. The differentiated indication (MSI-H) layout and the development of global multicenter clinical trials are expected to promote the large-scale sales and overseas listing of PD-1.
[investment suggestions]
The company has a complete layout of the pharmaceutical industry chain, and the “4in” (innovation, internationalization, integration and intelligence) strategy has been steadily promoted. The company has made significant innovation and transformation, and the innovative pharmaceutical products have contributed to the revenue for a long time. The international layout has been comprehensively accelerated, and the performance has increased steadily. The company’s performance in 2021 exceeded our expectations. We raised our revenue forecast for 2022 / 2023. We expect the company’s operating revenue to be 44.760/52.318/60.829 billion yuan, net profit attributable to the parent company to be 55.87/67.12/7.894 billion yuan, EPS to be 2.18/2.62/3.08 yuan and PE to be 24 / 20 / 17 yuan respectively in 2022 / 2023 / 2024, maintaining the “overweight” rating.
[risk tips]
Product R & D and sales uncertainty;
Medical safety accident risk;
Investment income risk;
International trade risks;
