\u3000\u3 China Vanke Co.Ltd(000002) 020 Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) )
Event:
The company released its annual report for 2021, realizing operating revenue of 3.336 billion yuan, net profit attributable to parent company of 614 million yuan and deduction of net profit not attributable to parent company of 515 million yuan, with a year-on-year increase of + 2.39%, - 5.98%, + 15.49% respectively, net operating cash flow of 365 million yuan and EPS of 0.05 billion yuan 75 yuan. The performance is in line with expectations.
Comments:
From 2021q1 to Q4, the company's single quarter operating revenue was RMB 8.21/8.39/8.08/868 million respectively, with a year-on-year increase of + 3.44% / - 0.94% / + 1.64% / + 5.53%; The net profit attributable to the parent company was 129 / 141 / 158 / 186 million yuan respectively, with a year-on-year increase of + 35.22% / + 9.38% / + 7.34% / - 34.13%. By product area:
The hospital expanded both inside and outside the hospital, and the product strength in the CNS field continued to strengthen: drug sales focused on the core field of mental nerve (CNS), realizing a sales revenue of 543 million yuan (YoY + 32%) throughout the year, maintaining a stable growth trend. By actively building a professional marketing team, the company has deeply cultivated the market inside and outside the hospital. At present, an academic and professional self-supporting team of more than 300 people has been established, covering more than 1500 key hospitals, connecting more than 200 national academic leaders in psychiatry and neurology and more than 5000 experts in key hospitals. Core product geek ® Ranked first in the hospital market in China (market share of about 43%); Sople ® It ranks first in the domestic hospital market in China (with a market share of about 11%).
The mixed operation team has just been completed, and the competitiveness in the digestion field is expected to be improved: the self operated + investment promotion mixed operation team has been completed, and the annual sales revenue in the digestion field is 466 million yuan (YoY + 15%), with a steady increase in the market share. In the future, the company will focus on promoting Beijing Changle ®、 Kangfuxin Liquid has two major products, expanding the market with multiple brands and channels. Beijing Changle in 2021 ® The sales volume in the hospital increased by 49% year-on-year; The sales volume of Kangfuxin Liquid in the hospital increased by 26% year-on-year. With the implementation of the bid winning of centralized procurement of Hubei alliance in this round, the market share in the hospital is expected to accelerate in the future.
Timely develop new directions and accumulate new growth momentum in the field of devices: the company focuses on the subdivided fields of mental nerves, cardio cerebrovascular and timely develop medical devices. The annual sales revenue in this field is 553 million yuan (YoY + 23%). Shenzhen Jufeng, a wholly-owned subsidiary, has a market share of more than 50% in China's medical image display terminals. It is a strategic partner of major global equipment manufacturers and occupies a leading market position. In the past 21 years, it has successfully matched with the giants of endoscopic surgery industry, such as Stryker and Pentax, and achieved a breakthrough in the ODM business of international endoscopic surgery from scratch; Actively respond to customer needs and successfully develop the first bedside remote sensing control product and the first voice control integrated system.
R & D investment continues to increase, and innovative drug R & D is distributed in a differentiated manner: in 2021, the company's R & D expenditure was 329 million yuan, with a year-on-year increase of 27.04%. At present, the company has rich product varieties and reasonable structure, and has built a multi-dimensional and multi-level product echelon and development pattern covering the three major diseases of the mental nervous system, cardiovascular system and digestive system. The company focuses on three pipelines, with clinical value oriented and differentiated layout of innovative drug research and development: evt201 capsule, a class 1 new drug for insomnia, has completed phase III clinical treatment; Jx11502ma capsule, a class 1 new drug for the treatment of schizophrenia, promotes the clinical phase II research; Pramipexorel sagilan sustained-release capsule, a class 2 improved new drug for the treatment of Parkinson's disease, was approved for clinical use, and Kangfuxin enteric coated capsule, a class 2 improved new drug for the digestive tract, started the clinical phase II study; Preclinical studies have been launched for anti Parkinson 2245, dyslipidemia 2168z, dyscoagulation 2182 and other projects. In addition, in 2021, the company obtained 29 new invention patents and has a total of 173 patented technologies, including 121 invention patents, 27 utility models and 25 designs. The company has always firmly strengthened the R & D layout and capital investment in core areas, continuously improved the competitiveness of products, and continuously consolidated the company's leading position in this segment.
Profit forecast, valuation and rating: considering that the company's management efficiency has been effectively improved through the optimization of product structure and the reform of marketing mode at the marketing end, and the profitability of its main business has achieved stable growth, we raised the forecast of net profit attributable to parent company from 2022 to 2023 to 696 / 825 million yuan (the original forecast was 687 / 810 million yuan, up 1% and 2% respectively), and added the forecast of net profit attributable to parent company in 2024 to 991 million yuan, up + 13.39% / + 18.43% / + 20.19% year-on-year. According to the latest equity calculation, EPS is 0.77/0.91/1.09 yuan respectively, and the current price corresponding to PE is 12 / 10 / 9 times. The valuation is low and maintains the "buy" rating.
Risk warning: the risk that the price reduction of centralized drug purchase exceeds the expectation; The risk that the R & D Progress of new products is lower than expected.
