Steady and sustained R & D investment and cash flow scale are the key factors for pharmaceutical enterprises to “go further”. According to the annual report released by Zhongsheng pharmaceutical on March 31, in addition to the record high total revenue and net profit, the group’s capital reserve exceeds 20 billion yuan (RMB, the same below). At a time when pharmaceutical enterprises generally encounter financial difficulties, excellent cash flow management ability and stable financial structure enable Zhongsheng pharmaceutical to give consideration to innovation and R & D and financial control. Focusing on the objectives set last year, Zhongsheng pharmaceutical will spare no effort to accelerate innovation transformation and internationalization, and strive to enter the top 30 global pharmaceutical enterprises in 2030.
During the reporting period, the Group recorded a revenue of 26.86 billion yuan, a record high, with a year-on-year increase of 13.6%. Among them, the profit attributable to the holders of the parent company was about 14.61 billion yuan, with a significant year-on-year increase of 427.2%. The adjusted net profit attributable to the parent company was 2.93 billion yuan, still with a year-on-year increase of 26.6%. The net loan ratio has maintained a low level for a long time, and the financial control ability is remarkable.
The sound financial situation gives China’s biopharmaceutical confidence in accelerating innovation and transformation. It is reported that the company has 57 innovative drugs in different clinical stages. It is expected that 10 innovative drugs will be approved in the next three years, mainly focusing on the fields of anti-tumor, liver disease, respiration and so on.
On the other hand, abundant capital reserves also give the group the confidence to accelerate the pace of internationalization. As the first step of internationalization, Zhongsheng pharmaceutical successively acquired a new generation of mRNA and soft fog inhalation platform, which laid the foundation for the development of vaccine track and delivery technology on the basis of its existing pipeline. In the future, invox, a wholly-owned subsidiary of Zhongsheng in Europe, will continue to actively explore investment opportunities and promote the group’s internationalization strategy around the three strategic directions of breakthrough innovation platform, advanced delivery platform and global authorized transaction.
Everbright Securities Company Limited(601788) the latest research report analysis indicates that after deducting the impact of covid-19 vaccine, the overall performance of the company meets the basic expectations. Industry insiders believe that compared with Hong Kong listed companies with similar pipeline progress and R & D capacity, the current valuation of Zhongsheng pharmaceutical is seriously underestimated and highly attractive. With the catalysis of the positive news of the financial report data, the company’s valuation is expected to move towards a new inflection point.
