\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Core conclusion
Event: Beijing Tongrentang Co.Ltd(600085) released the 2021 annual report. During the reporting period, the operating revenue was 14.603 billion yuan (year-on-year + 13.86%), the net profit attributable to the parent company was 1.227 billion yuan (year-on-year + 19.00%), and the net profit not attributable to the parent company was 1.209 billion yuan (year-on-year + 19.52%), and the performance growth rate was in line with expectations.
21q4 revenue growth slowed slightly, and asset impairment dragged down performance. 21q4 achieved an operating revenue of 3.920 billion yuan (year-on-year + 3.90%), a net profit attributable to the parent company of 307 million yuan (year-on-year - 2.86%), and a net profit not attributable to the parent company of 300 million yuan (year-on-year - 2.35%). The slight slowdown in revenue growth is expected to be related to the company's sales plan at the end of the year. 21q4 company has an inventory impairment of 166 million yuan, which is a drag on the performance of a single quarter. Core products maintained steady growth. In 2021, the company's top five series of products (Angong Niuhuang, Niuhuang Qingxin, Dahuoluo, Liuwei Dihuang and Jinkui Shenqi Series) achieved a revenue of 4.116 billion yuan (year-on-year + 15.41%), achieving a stable growth. The cardiovascular and cerebrovascular products mainly including Angong Bezoar, bezoar Qingxin and Da Huoluo series achieved a revenue of 3.629 billion yuan (year-on-year + 20.80%).
Pharmacies continue to expand and are expected to be benefited by the inclusion of medical insurance policies. By the end of the year, the number of designated retail stores had increased by 9202, accounting for 462.75% of the total, up from the same period last year. Among them, 560 stores have set up traditional Chinese medicine clinics, with a year-on-year increase of 50. It is expected that this sector will continue to be favored by the policies of including traditional Chinese Medicine pharmacies into the designated medical insurance and the diagnosis and treatment expenses of traditional Chinese medicine clinics into the medical insurance in the next three years, and the passenger flow will continue to increase.
Maintain the "buy" rating. It is estimated that the net profit attributable to the parent company in the next three years will be RMB 1.436/16.61/1.912 billion respectively, EPS will be RMB 1.05/1.21/1.39 respectively, and the corresponding PE will be 41.5x/35.9x/31.2x respectively. Considering that the company is a leader in the traditional Chinese medicine industry, the core products have the strength of simultaneous rise in volume and price, and continue to be favorable by policies, maintaining the "buy" rating.
Risk tips: industry policy risk, raw material price rise risk and market risk, etc
