\u3000\u30 Shenzhen Fountain Corporation(000005) 13 Livzon Pharmaceutical Group Inc(000513) )
Event:
Recently, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 12.064 billion yuan, a year-on-year increase of 14.67%; The net profit attributable to the shareholders of the parent company was 1.776 billion yuan, a year-on-year increase of 3.54%; The net profit after non deduction was 1.627 billion yuan, a year-on-year increase of 13.66%.
Comments:
The two wheel drive of chemical agents is growing rapidly, and the results of key projects of chemical drugs under research are obvious
In 2021, the sales revenue of chemical agents was 7.224 billion yuan, with a year-on-year increase of 33.71%. Among them, the innovative drug iprazole series products and leuprorelin acetate microspheres for injection continued to grow at a high rate, and the proportion of revenue and profit contribution further increased. The company timely followed up the national medical reform policies and local implementation measures. In 2021, the negotiation of iprazole sodium for injection was successfully completed, its payment limit was adjusted, and the beneficiary population was expanded.
The varieties under development based on biological drugs, microspheres and other platforms have injected new impetus into the operation and development of the company:
Triptorelin acetate microspheres for injection (1-month sustained release) completed phase III clinical study and applied for production registration; Ceterrec acetate for injection was approved to be listed in China in December 2021; Recombinant human chorionic gonadotropin for injection was approved for marketing as the first imitation variety in China; Recombinant humanized anti-human IL-6R monoclonal antibody injection (tozumab injection) has been officially reported and accepted.
Overseas sales of APIs and intermediates continued to grow, and overseas market registration was strengthened
In 2021, the sales revenue of APIs and intermediates was 2.909 billion yuan, with a year-on-year increase of 19.20%. The company strengthened the market development of high-end antibiotic API products and high-end pet drugs, strengthened the registration in Europe, America and other overseas markets, and the sales increase in many regions around the world was obvious. There are 6 projects under research, of which dabavin has completed the verification batch production, and frerana plans to carry out the verification batch production.
The clinical trial of v-01 vaccine is coming to an end, and it has obvious advantages for the elderly
The v-01 vaccine of the subsidiary lizuzumab has completed the medium-term master data analysis of the sequential enhanced phase III clinical trial, and the sequential protective power is 61.35%, which has significant strong and excellent efficacy, and has met the WHO standard. V-01 vaccine has a good protective effect on covid-19 pneumonia caused by Omicron infection, and also has a good protective effect on the elderly; In terms of production capacity preparation, v-01 has realized the localization of raw materials. The original solution production line and preparation production line of v-01 have passed the on-site inspection of vaccine production license by Guangdong food and Drug Administration and obtained the vaccine production license. At present, about 50 million finished products have been produced, and the original solution production capacity is expected to reach 3.5 billion doses, and the preparation production capacity in 2022 will reach 1.5 billion doses.
Profit forecast and investment rating: we expect that the impact of the epidemic on income will continue, and adjust the forecast for the next three years accordingly. The operating revenue of the company from 2022 to 2024 will be RMB 133.94/152.9117775 billion respectively (the value before 2022 is RMB 13.585 billion), and the net profit attributable to the parent company will be RMB 2.021/23.462738 billion respectively (the value before 2022 is RMB 2.224 billion). Maintain the “buy” rating.
Risk warning: product price reduction risk, new drug research and development less than expected, vaccine research and development less than expected
