\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 535 Tasly Pharmaceutical Group Co.Ltd(600535) )
2021 annual report:
During the reporting period, the company achieved an operating income of 79519566 million yuan, a year-on-year decrease of 41.43%; The total profit was 2723540300 yuan, a year-on-year increase of 86.92%; The net profit attributable to shareholders of listed companies was 2358865 million yuan, a year-on-year increase of 109.51%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 608756400 yuan, a year-on-year decrease of 26.84%; The basic earnings per share was 1.57 yuan, a year-on-year increase of 109.33%. The company’s non recurring profit and loss in the fourth quarter was – 325 million yuan, mainly due to the impairment effect of T101
The pharmaceutical industry grew steadily, and the growth rate of core traditional Chinese medicine products was considerable. During the reporting period, the company’s traditional Chinese medicine business realized an operating revenue of 508023300 yuan, a year-on-year increase of 13.74%; The gross profit margin was 72.94%, an increase of 2.25 percentage points over the same period last year. The business income of chemical agents and drugs was 1255391100 yuan, a year-on-year decrease of 23.78%; The gross profit margin was 78.18%, down 5.29 percentage points from the same period last year.
The business of chemical raw materials achieved an operating revenue of 672956 million yuan, a year-on-year increase of 25.55%; The gross profit margin was 59.24%, an increase of 8.68 percentage points over the same period last year. The operating income of biological medicine business was 251381500 yuan, a year-on-year increase of 16.52%; The gross profit margin was 65.35%, an increase of 4.81 percentage points over the same period last year. The business income of pharmaceutical business was 1244401 million yuan, a year-on-year decrease of 82.53%; The gross profit margin was 28.85%, an increase of 18.83 percentage points over the same period last year. Affected by the centralized purchase, the sales of Tiqing, Wenfei and other products fell, resulting in the decline of the revenue of the chemical pharmaceutical sector. The considerable growth of the company’s core traditional Chinese medicine products and the rapid growth of chemical API and biological medicine business have driven the steady growth of the pharmaceutical industry. The decline in pharmaceutical business income was due to the disposal of Tasly Pharmaceutical Group Co.Ltd(600535) marketing of its subsidiary last year.
Rich R & D pipelines and innovation provide development power. At present, the company has 94 research projects, of which 46 are class 1 innovative drug projects, and 52 projects have entered the clinical stage. During the reporting period, the company obtained the registration certificate and supplementary application for 8 varieties such as kunxinning granules, compound Danshen dropping pills and sugar net indications. In addition, puyouke, the company’s heavyweight product, is a new generation of specific thrombolytic drugs. At present, the phase III clinical trial of the product for the treatment of acute ischemic stroke has been completed and successfully submitted for approval. The probability of new indications was approved in 2022. Adding new indications will help the rapid and large-scale sales of the product and increase the performance.
Covid-19 epidemic uncertainty increases, and the demand for catalytic treatment. In recent China’s New Coronavirus pneumonia diagnosis and treatment plan and the expert consensus on prevention and treatment of New Coronavirus pneumonia in the Chinese patent medicine, the treatment plan for COVID-19 pneumonia is again clear. The Chinese patent medicine treatment COVID-19 plan is also included. At present, with Omicron ba Subtype 2 virus has spread rapidly in the world, the uncertainty of covid-19 pneumonia epidemic situation has increased again, and the demand for catalytic treatment.
With the release of the 14th five year plan of traditional Chinese medicine, the prosperity of the industry is worth looking forward to. On March 29, the general office of the State Council issued the notice of the “14th five year plan” for the development of traditional Chinese medicine. China’s top-level POLICIES continued to pay more attention to and support the traditional Chinese medicine industry. At the same time, the plan specifies that the market scale of traditional Chinese medicine in the treatment of major chronic diseases such as cardiovascular and cerebrovascular diseases will be further improved. Compound Danshen dropping pills and other products have been rooted in the cardiovascular field for many years. In the field of heart failure and myocardial infarction, the company actively layout and innovate traditional Chinese medicine plus ginseng tablets, and the revenue of traditional Chinese medicine is expected to continue to grow.
Investment suggestion: we expect that the EPS of the company after dilution from 2022 to 2024 (excluding the impact of conversion to share capital) will be 0.83 yuan, 0.89 yuan and 1.00 yuan respectively, and the corresponding dynamic P / E ratios will be 18.09 times, 16.85 times and 14.95 times respectively. As a Chinese brand modern traditional Chinese medicine enterprise, the company has a good layout in the field of innovation and traditional Chinese medicine. At present, the traditional Chinese medicine industry benefits from the double support of industrial policies and covid-19 demand, and gives a buy rating.
Risk tips: policy risk, R & D risk and market risk less than expected
