\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 01 Zhejiang Garden Bio-Chemical High-Tech Co.Ltd(300401) )
Event 1: the company released its annual report for 2021. In 2021, the company achieved a revenue of RMB 1.117 billion, a year-on-year increase of + 69.40%, a net profit attributable to the parent of RMB 480 million, a year-on-year increase of + 82.29%, and a net profit not attributable to the parent of RMB 255 million, a year-on-year increase of + 13.54%, with a weighted average roe15.5% 96%, asset liability ratio 35.36%. In the fourth quarter, the revenue in a single quarter was 661 million yuan, with a year-on-year increase of + 291.27%, and the net profit attributable to the parent was 204 million yuan, with a year-on-year increase of + 452.11%. The net profit not attributable to the parent was 72 million yuan, with a year-on-year increase of + 140.89%. The company plans to pay a cash dividend of 1.88 yuan (including tax) for every 10 shares, and the company’s performance meets market expectations.
Huayuan Pharmaceutical Co., Ltd. consolidated, and the company’s annual performance increased significantly year-on-year. In 2021, the gross profit margin of the company’s sales was 68.66%, with a year-on-year increase of 8.3 percentage points, the net profit margin was 45.65%, with a year-on-year increase of 1.37 percentage points, and the net operating cash flow was 504 million yuan, with a year-on-year increase of + 20.86%; The construction in progress was 1.475 billion yuan, a year-on-year increase of + 48.99%, mainly due to the continuous investment in the construction of Jinxi science and Technology Park project. The R & D expenditure was 59 million yuan, a year-on-year increase of + 31.68%, mainly due to the increase of drug R & D expenditure by Huayuan Pharmaceutical to explore the market. After the acquisition of Huayuan Pharmaceutical and the relocation of Hangzhou subsidiary, the company’s revenue and net profit increased significantly in 2021, and the annual performance met expectations.
Jinxi science and technology park is expected to be fully put into operation in June. High value-added products such as 25 hydroxy VD3 drive high performance growth. Affected by the epidemic, the construction progress of the company’s fund-raising projects in Jinxi science and technology park is slow. Among them, vitamin D3 project has been put into operation, refined lanolin project has entered trial production, and the equipment installation of cholesterol and 25 hydroxyvitamin D3 project has been completed. The company plans to conduct full interview production before the end of June 2022. At that time, Zhejiang Garden Bio-Chemical High-Tech Co.Ltd(300401) will become the largest lanolin cholesterol, vitamin D3, 25 hydroxyvitamin D3 It is a manufacturer of four categories of refined lanolin products. The current price of the company’s traditional product VD3 is 89000 / ton, which is at the bottom of history, with stable profits and small downward space; The raised investment projects are mainly food and pharmaceutical grade VD3, lanolin cholesterol and 25 hydroxycholesterol with higher added value and less periodic fluctuation. The new project is put into operation to ensure the profitability of the company to a new level in the next 2-3 years.
Huayuan Pharmaceutical is rich in varieties under research, and the company’s industrial chain extends vertically to the downstream pharmaceutical field. In 2021, Huayuan Pharmaceutical obtained 5 drug registration certificates or supplementary application approval notices (deemed to have passed the consistency evaluation), 3 varieties under review and 8 varieties under development. The rich variety reserve provides a solid foundation for the company’s later performance growth. Relying on the existing qualification and management team of vitamin D3, the company can quickly expand its active pharmaceutical industry to the downstream market by relying on its mature pharmaceutical industry chain.
Profit forecast and investment suggestions: we expect the company’s revenue from 2022 to 2024 to be RMB 1.518/19.692436 billion respectively; The net profit attributable to the parent company was 530 / 685 / 890 million yuan respectively, with a year-on-year increase of 10.4% / 29.3% / 30.0%, EPS of 0.96, 1.24 and 1.62 yuan / share, and the corresponding PE of the current stock price was 14.3 / 11.0 / 8.5 times, maintaining the “buy” rating.
Risk warning: the commissioning progress of new projects is less than expected, the product price fluctuates sharply, and the safety production risk.
