\u3000\u Guangzhou Improve Medical Instruments Co.Ltd(300030) Cofco Biotechnology Co.Ltd(000930) 0009)
Event:
On March 31, the company released its annual report for 2021. In 2021, the company realized an operating revenue of RMB 2.169 billion, a year-on-year increase of 27.47%, a net profit attributable to the parent company of RMB 207 million, a year-on-year decrease of 42.44%, and a net profit attributable to the parent company of RMB 158 million after non deduction, a year-on-year decrease of 50.08%.
Comments:
The main business income continued to grow rapidly, and the goodwill impairment of subsidiaries affected profits
The parent company Anhui Anke Biotechnology (Group)Co.Ltd(300009) mainly produces human growth hormone and human interferon α 2B and other biological products. In 2021, the operating revenue was 1.256 billion yuan, a year-on-year increase of 43.08%, and the net profit was 375 million yuan, a year-on-year increase of 10.55%. Among them, the single product sales revenue of growth hormone exceeded 1 billion yuan for the first time. In addition, the sales revenue of chemical drugs (Anke Hengyi), Chinese patent medicine (Yu Liangqing) and other products of subsidiaries showed a stable growth trend. The business policy of “focusing on the main business and stimulating vitality” has achieved results. The company’s net profit did not meet expectations, mainly due to the provision for goodwill impairment of about 323 million yuan for its subsidiaries SOHO Yiming and Sino German Meilian. There are uncertainties in the future operating conditions and profitability of the two companies.
The company’s two types of growth hormone powder injections have successfully won the bid for Guangdong centralized purchase
In March 2022, Guangdong Alliance launched centralized procurement, and four enterprises were selected for growth hormone powder injection dosage forms. Among them, United Saier and kinsay pharmaceutical are proposed to be selected, and Zhongshan weiminghe company is proposed to be selected. Compared with the highest valid application price previously disclosed, the average decline of powder injection reached 51.32%, and the price reduction of the two powder injection specifications of the company was 18.75%, with a small price reduction. The company will reduce the product price on the basis of changing the price by quantity, and will actively improve the product brand influence and service level in the future, so as to improve the product penetration and sales volume and reduce the sales impact caused by the price decline. There is no successful enterprise for water needle products, and the product sales are expected to be unaffected.
The implementation of production line projects enhances the supply capacity, and anti-tumor products are expected to become a new growth point of performance
In 2021, the company approved two new indications for growth hormone: 1) idiopathic short stature (ISS); 2) Turner syndrome. Among them, the company’s growth hormone is the first product with ISS indications approved in China, and the company is also the enterprise with the most approved indications of growth hormone in China. Two new approved specifications of water needle will better meet the clinical and market needs. The new production line with an annual output of 20 million human growth hormone for injection in the North District of the company was also approved in March 2022, which will effectively solve the bottleneck of existing production capacity and improve the supply capacity of human growth hormone. In addition, the company is preparing to apply for the listing of monoclonal antibody against HER2. It is expected to become the second company to apply for the listing of monoclonal antibody against human trastuzumab in the future. It is also the first company to apply for the listing of monoclonal antibody against human trastuzumab, and it is expected to become the second company to apply for the listing of monoclonal antibody against human trastuzumab in the future.
Profit forecast and investment rating: we predict that the impact of the epidemic on income will continue, and adjust the forecast for the next three years accordingly. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 2.696/33.374091 billion respectively (the value before 2022 is RMB 3.1 billion), and the net profit attributable to the parent company will be RMB 6 Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) 102 million respectively (the value before 2022 is RMB 671 million). Maintain the “overweight” rating.
Risk tips: policy changes in the pharmaceutical industry, risk of product price reduction, failure of new drug research and development to meet expectations, etc
