\u3000\u30 Shenzhen Fountain Corporation(000005) 13 Livzon Pharmaceutical Group Inc(000513) )
Event:
The company released the annual report of 2021. The annual revenue was 12.064 billion, a year-on-year increase of 14.67%, the net profit attributable to the parent was 1.776 billion, a year-on-year increase of 3.54%, and the net profit deducted from non attributable to the parent was 1.627 billion, a year-on-year increase of 13.66%. The performance was in line with expectations. The company plans to pay 13 yuan for every 10 shares.
Comments:
High end preparations and APIs drive performance growth
In terms of business, the company’s chemical agents achieved a revenue of 7.224 billion (year-on-year + 34%), of which the innovative drug iprazole series led to a revenue of 3.718 billion (year-on-year + 50%), and leuprorelin microspheres led to a revenue of 2.454 billion (year-on-year + 28%). The API business realized a revenue of 2.909 billion (year-on-year + 19%), mainly due to the company’s efforts to increase the overseas registration and market development of API products. The revenue of diagnostic reagent and equipment business reached 724 million (year-on-year – 47%), mainly due to the high base of covid-19 detection reagent last year.
We are optimistic about the layout of Lizhu in preparations and APIs
The annual R & D cost of the company is 1.146 billion, leading the investment. Triptorelin microsphere has completed phase III clinical trial and applied for production registration. The application for production of tozumab (IL-6R) has been accepted. Covid-19 vaccine v-01 has carried out phase III clinical trial in many countries. Although the price of iprazole decreased in the negotiation, the original payment scope has been cancelled and expanded to the population of “peptic ulcer bleeding”; In terms of APIs, the products are extended to high-end antibiotics and pet drugs, and the gross profit margin or income is increased. Lizhu is optimistic about the improvement of preparations and APIs.
Maintain the “overweight” rating
The microsphere, covid-19 vaccine and monoclonal antibody under research in the pharmaceutical business of the company are expected to accelerate the growth of performance. The API continues to obtain overseas certification, and the proportion of high-end API development increases, driving the performance. It is optimistic about the long-term development of Lizhu. It is estimated that the net profit in 22-24 years will be 1.967/22.52/2.597 billion respectively, corresponding to the closing price on March 28, PE will be 19 / 17 / 14 times respectively, and the three-year CAGR will be 13.50%, maintaining the “overweight” rating.
Risk tips
Vaccine development is not as expected; The sales of iprazole were lower than expected; API expansion is lower than expected
