\u3000\u3 Shengda Resources Co.Ltd(000603) 896 Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) )
Event:
Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) release annual report: in 2021, the company achieved operating income of 767 million yuan (+ 20.61%), net profit attributable to parent company of 201 million yuan (+ 32.47%) and net profit not attributable to parent company of 199 million yuan (+ 45.19%).
Key investment points:
The company’s performance continued to grow rapidly, and the growth rate of net profit further improved. In 2021, the company achieved an operating revenue of 767 million yuan (+ 20.61%), and continued to achieve rapid growth. In 2021, the net profit attributable to the parent company was 201 million yuan (+ 32.47%), deducting the net profit not attributable to the parent company was 199 million yuan (+ 45.19%), and the company’s profit ushered in further room for improvement.
The diversified development of spore powder continuously improves the market potential. In 2021, Ganoderma lucidum spore powder achieved an income of 536 million yuan (+ 18.24%), accounting for 70.51% and a gross profit margin of 88.17%; Dendrobium candidum achieved an income of 123 million yuan (+ 20.97%), accounting for 16.15% and a gross profit margin of 77.54%. The core product Ganoderma lucidum spore powder is diversified. At present, it is mainly divided into four categories: Ganoderma lucidum spore powder (wall breaking), wall breaking Ganoderma lucidum spore powder, wall breaking Ganoderma lucidum spore powder particles and wall breaking Ganoderma lucidum spore powder tablets, accounting for 20.71%, 29.13%, 16.24% and 4.44% respectively. From the aspects of product attributes, functions and prices, it can fully meet the diversified needs of consumers and further open the market consumption potential.
Adhere to the development model of “famous doctors, famous drugs and famous stores” and actively promote sales reform. In 2021, the provincial market realized revenue of 482 million yuan (+ 19.10%), the market outside the province realized revenue of 92 million yuan (+ 16.43%), and the Internet realized revenue of 185 million yuan (+ 27.33%), accounting for 63.45%, 12.15% and 24.40% respectively. The sales model of “famous doctors, famous drugs and famous stores” and the Trinity marketing strategy of “time-honored brands, hospitals and supermarkets” have continuously brought steady performance growth to the company; The expansion of Internet channels and dealers outside the province, relying on the core advantages of Zhejiang Shouxiangu Pharmaceutical Co.Ltd(603896) brand, actively promote the rapid development of the company’s business and move towards the national market.
Profit forecast and investment rating predict that the revenue in 2022 / 2023 / 2024 will be 942 million yuan / 1.185 billion yuan / 1.522 billion yuan, the corresponding net profit attributable to the parent company will be 254 million yuan / 324 million yuan / 419 million yuan, and the corresponding PE will be 34.89/27.36/21.11. Maintain the “buy” rating.
The risk indicates the risk that the production and operation qualification is cancelled, the risk that the policy leads to the loss of part of the product sales market, the risk that the product sales promotion is less than expected, the risk of uncertainty in the development of the company’s second growth curve, the risk that the R & D progress is less than expected, and the fierce peer competition leads to a serious decline in product sales
