\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 557 Jiangsu Kanion Pharmaceutical Co.Ltd(600557) )
Main points:
Events
On April 12, 2022, the company disclosed the first quarter report of 2022. In the first quarter of 2022, the company realized an operating revenue of 1.079 billion yuan, a year-on-year increase of 25.16%, and a net profit attributable to shareholders of listed companies of 110 million yuan, a year-on-year increase of 30.94%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 107 million yuan, with a year-on-year increase of 34.69%. The basic earnings per share is 0.19 yuan / share.
Event comments
Start the equity incentive plan to improve the company’s operating performance
The number of restricted shares to be granted to incentive objects is 8.8 million, accounting for about 1.53% of the total share capital of the company. 8 million shares were granted for the first time and 800000 shares were reserved. The number of people granted shall not exceed 163. The grant price is 7.92 yuan / share. Assessment objectives: meet (1) 22% / 20% / 18% year-on-year revenue or 24% / 22% / 20% year-on-year net profit at the same time; (2) Non injection revenue 22% / 23% / 22% YoY
The number of exclusive varieties is large, and the potential of basic drug varieties is huge
The company has 203 drug production approvals, including 43 exclusive varieties of traditional Chinese medicine (3 protected varieties of traditional Chinese Medicine), 43 basic drugs and 6 exclusive varieties of basic drugs. The company’s strategic varieties are Reduning injection and Jinzhen oral liquid of anti-virus infection series and ginkgolide glucosamine injection in the field of cardio cerebrovascular. The company also selected six exclusive basic drug varieties and Yixinshu tablets to form “seven basic drug varieties” for comprehensive development. Under the overall environment of the full implementation of the national essential drug policy, the resource advantage of the company’s large variety of exclusive basic drugs is gradually transforming into market advantage.
Guangdong alliance’s centralized procurement has landed, and the company’s products are brilliant
Two exclusive products and two non exclusive varieties of the company won the bid in the centralized purchase of Chinese patent medicines by the alliance of six provinces including Guangdong. Exclusive varieties: Reduning reduced price by 21%, Rhodiola sachalinensis reduced price by 29%, and all reported quantities and increments were obtained. The reported volume of mainstream competitive products of Reduning is small, and the remaining market is distributed by Reduning and other products. The base of Rhodiola Dazhu is relatively low, and the price reduction of centralized mining has no too much impact on the overall business, or it can passively occupy the market in large quantities. Non exclusive varieties: the stock market of compound salvia miltiorrhiza and Ginkgo biloba leaves is limited, or they can be collected in large quantities.
In the post epidemic era, the two varieties are listed in the covid-19 epidemic diagnosis and treatment plan
In March 2022, the office of the national health and Health Committee and the office of the State Administration of traditional Chinese medicine jointly issued the New Coronavirus pneumonia diagnosis and treatment plan (trial version ninth). Huoxiang Zhengqi multi dosage form is listed as the recommended drug in the medical observation period by the scheme. At the regular press conference on epidemic prevention and control held by the Information Office of Guangdong Provincial Government on February 18, 2020, academician Zhong Nanshan’s team studied and confirmed that among the six traditional Chinese medicines that can inhibit the cytopathic effect caused by covid-19 virus in vitro, the company’s exclusive varieties Reduning injection and Jinzhen oral liquid were among them.
The research and development of innovative drugs continued, and the drug research was carried out steadily after listing
In 2021, the company obtained 65 newly authorized invention patents, applied for 2 production approvals and 2 clinical licenses, promoted a batch of innovative drugs to enter phase I, II and III clinical stages, and effectively promoted the preclinical research of a batch of class 1.1 innovative drugs. The company also continued to promote the in-depth research after the listing of key varieties of medical insurance or basic drugs, orderly carried out the clinical research of evidence-based medicine and basic research such as efficacy components and action mechanism of main varieties, and continued to accumulate clinical re evaluation and basic research evidence, so as to provide strong support for the academic promotion and clinical rational drug use of listed varieties.
Investment advice
We estimate that the operating revenue of the company from 2022 to 2024 will be 4.453/53.98/6.482 billion yuan respectively, with a year-on-year increase of 22.0% / 21.2% / 20.09% respectively, and the net profit attributable to the parent company will be 4.12/5.15/606 billion yuan respectively, with a year-on-year increase of 28.6% / 24.9% / 17.8%, and the corresponding PE will be 23.1/18.5/15.7x, maintaining the “buy” rating.
Risk tips
Industry policy risk; Product R & D risk; Uncertainty of drug sales, etc.
