Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603)
Investment logic: a leading enterprise in the inheritance and innovation of traditional Chinese medicine. The company is China's innovative medicine leader, and based on the essence of traditional Chinese medicine, relying on the theory of collateral disease, forming the "five in one" development mode of theory, scientific research, clinical production and teaching, and achieving fruitful results in three major fields, namely, curing chronic diseases, treating new diseases and preventing diseases. Major breakthroughs have been made in the field of cardiovascular prevention and treatment; In the field of anti epidemic, Lianhua Qingwen capsule has been recognized by the world and has become a prominent representative of traditional Chinese medicine against covid-19; In the field of diabetes, anti aging and mental neurology, the company's multiple innovative Chinese medicine products will continue to grow as the company's growth Gong Xianxin.
Inheriting the essence of Chinese medicine and collating the theory of collateral disease. Collateral disease theory is the three theoretical frameworks of collateral disease research, which are composed of collateral disease syndrome and treatment, venation theory and Qi collateral theory, established by Academician Wu Yiling's team, and formed three theoretical works of venation theory, collateral disease theory and Qi collateral theory to guide the development of characteristic drugs, improve clinical therapeutic effect and form dominant diseases. In the field of treating chronic diseases, the company has rich cardiovascular product lines. Tongxinluo, Shensong Yangxin and Qili Qiangxin are all high-quality cardiovascular treatment products in China; In the field of treating new diseases, the company has developed a series of Lianhua Qingwen products, which have excellent preventive and therapeutic effects on exogenous febrile diseases such as COVID-19, influenza, SARS and H1N1, and have made remarkable achievements at home and abroad. In the field of preventive treatment, the company has formed a rich matrix of Bazi Bushen, jujube shuanshen oral liquid and other products, which are used for early prevention of various preventive diseases, post lesion treatment and inhibition of recurrence. The research based on collateral disease theory has successfully won 6 national awards, and has published more than 200 academic papers in international authoritative academic journals, which has played a key role in promoting the globalization of traditional Chinese medicine.
A good prescription is provided for the epidemic, and Lianhua Qingwen series contributes to the prevention and control of covid-19 epidemic outside China. Lianhua Qingwen capsule / granule is the wisdom of the company in treating Chinese pestilence for two thousand years. It integrated the research achievements of the three dynasties in the Han Dynasty, the Ming Dynasty and the Qing Dynasty, combined with the research results of antiviral and anti-inflammatory drugs of modern Chinese medicine, and developed an innovative Chinese medicine product for clearing away the toxin and detoxifying, dispersing lung and expelling heat, and treating influenza as a hot toxin attacking lung syndrome. In February 2020, Lianhua Qingwen capsule / granule was included in the national health and Health Committee's New Coronavirus pneumonia diagnosis and treatment plan (trial version fifth). In April, it was officially approved by the State Food and Drug Administration for fever, cough and fatigue caused by mild and normal COVID-19 viral pneumonia. The course of treatment is 7 to 10 days. The series of Lianhua Qingwen products began in the 2003 SARS epidemic, and its clinical curative effect is outstanding. It has been approved in more than 20 countries and regions around the world. In 2020, the sales of Lianhua Qingwen series has exceeded 4 billion yuan. We expect that in the post epidemic era, the sales of this series of products is expected to exceed 10 billion yuan, becoming the first global heavy-duty product of traditional Chinese medicine.
Inheritance and innovation go hand in hand, leading the innovation and R & D of traditional Chinese medicine. On the basis of inheriting the essence of Chinese medicine, the company has made many achievements in the field of TCM innovation. Under the guidance of collateral disease theory, relying on Hebei Yiling hospital and the State Key Laboratory of collateral disease research and innovation of traditional Chinese medicine, the company has formed a virtuous circle development model of "theory + clinical + new drug + experiment + evidence-based", and guided the development of 13 patented traditional Chinese medicines, more than 20 pre clinical and more than 100 in-hospital preparations. In 2020, the new version of measures for the administration of registration of traditional Chinese medicine was issued, and innovative traditional Chinese medicine ushered in a historic development opportunity; From 2017 to 2021, a total of 20 new traditional Chinese medicine drugs were approved for listing in China, and Yiling was approved for 3 products. Only in 2021, the number of approved products reached 12, and Yiling was approved for 2 products, leading the number. In addition to the R & D of traditional Chinese medicine, the company has rich R & D pipelines in the field of chemical and biological drugs. Anilofen has entered phase III clinical practice, and the chemical and biological sector will enter the harvest period one after another.
Profit forecast and investment rating: the company is a leading enterprise in China's innovation of traditional Chinese medicine, and the essence of traditional Chinese medicine based on collateral disease theory is to continue to achieve innovation and breakthrough. Lianhua Qingwen series products have made remarkable achievements in epidemic prevention and control, and are expected to become the first global heavy traditional Chinese medicine variety. We expect that the company will realize an operating revenue of 10.06/11.86/14.03 billion yuan and a net profit attributable to the parent company of 1.36/16.9/2.05 billion yuan in 2021 / 2022 / 2023. For the first time, give a "buy" rating.
Risk warning: risk of price reduction of medical insurance or centralized purchase; Risk of price increase of upstream raw materials; Risk of R & D falling short of expectations or failure.
