Recently, Hualan Biological Engineering Inc(002007) ( Hualan Biological Engineering Inc(002007) . SZ, hereinafter referred to as Hualan Biological Engineering Inc(002007) ) disclosed the annual report of 2021. The operating income was RMB 1.0026 billion, a year-on-year decrease of RMB 1.0021 billion; The net profit attributable to the parent company was 1.299 billion yuan, a year-on-year decrease of 19.48%.
This is the first time in Hualan Biological Engineering Inc(002007) nearly a decade that the growth rate of revenue and net profit both fell Hualan Biological Engineering Inc(002007) ‘s main products are influenza vaccine and blood products, but these two products suffered a “double robbery” last year: influenza vaccine and covid-19 vaccine “collided”, and the revenue fell sharply; The development of blood products has encountered a bottleneck, the gross profit margin has decreased for four consecutive years, and the number of plasma collection stations has stagnated since 2018 Hualan Biological Engineering Inc(002007) board secretary’s office told Huaxia times that the company has been actively promoting the application of plasma collection stations and hopes to expand the number of plasma collection stations. Although the number of plasma collection stations of the company is not large among the leading enterprises, the plasma collection volume is relatively high.
In the capital market, the “father and son” of Hualan Biological Engineering Inc(002007) and Hualan vaccine also encounter the “double bear” of stock price. Despite the support of many star investors, Hualan vaccine has been listed for less than three months, and its share price has fallen below the issue price. The decline of Hualan Biological Engineering Inc(002007) year to date has also reached 37%.
Hualan Biological Engineering Inc(002007) was “robbed” at the same time in the two major tracks.
face change after listing
Hualan vaccine was listed through Hualan Biological Engineering Inc(002007) “a demolition a” on February 18 this year. At that time, Hualan vaccine was favored by many star investors.
Among them, Gaoling Huaying and Chenyi Qiming hold 9% and 6% equity of Hualan vaccine with 1.242 billion yuan and 828 million yuan respectively. Tianyan check shows that the major shareholder of Gaoling Huaying is Shenzhen Gaoling Muqi equity investment fund partnership, and the major shareholder of the enterprise is Tencent industrial investment fund, in addition to star shining partners such as China Merchants wealth and Suqian Huiyuan.
Behind Chen yiqiming is Liu Xiaodan, known as the “Queen of mergers and acquisitions”. Liu Xiaodan is the former head of Huatai United Securities. The sponsor of Hualan vaccine’s IPO is Huatai United Securities. It is rumored that Liu Xiaodan’s first investment project after leaving Huatai United Securities is Hualan vaccine IPO.
Hualan vaccine, so popular with star investors, is the largest manufacturer of influenza vaccine in China. At present, the vaccines listed include influenza virus split vaccine, tetravalent influenza virus split vaccine, tetravalent influenza virus split vaccine (children’s dosage form), etc. the revenue of influenza vaccine accounts for 99.72%.
In the three years before the launch of Hualan vaccine, its performance increased rapidly. From 2018 to 2020, the revenue growth rate of Hualan vaccine was 181%, 30% and 131% respectively; The growth rate of net profit was 451%, 39% and 146% respectively. However, the 2021 financial report disclosed after listing showed a significant decline in performance growth.
The annual report shows that in 2021, the company achieved a revenue of 1.83 billion yuan and a net profit attributable to the parent company of 621 million yuan, a year-on-year decrease of 24.59% and 32.86% respectively; Non net profit deducted by the company decreased by 34.88% year-on-year; The net cash flow from operating activities decreased by 17.93% year-on-year.
The company said that due to the impact of covid-19 vaccine booster vaccination and covid-19 vaccine replacement for children under the age of 12 and other factors in the influenza sales season in the second half of last year, the market sales of influenza vaccine was greatly affected, resulting in a decline in the company’s operating revenue and net profit.
In the capital market, despite the blessing of star investors, Hualan vaccine IPO is quite “untimely”. Since last year, the financing window of the secondary market for biomedicine has been closed. In addition, the market environment is sluggish, and the performance of Hualan vaccine is not ideal. The issuing price of Hualan vaccine was 56.88 yuan / share. After rising to 79.78 yuan / share on the day of listing, it has fallen by 27% so far. As of April 13, it closed at 41.51 yuan / share.
blood products encounter bottleneck
Hualan Biological Engineering Inc(002007) ‘s revenue mainly comes from blood products and influenza vaccines. Influenza vaccine “crash” covid-19 vaccine revenue fell sharply. At the same time, blood products also encountered a bottleneck in development.
In 2021, the revenue of Hualan Biological Engineering Inc(002007) blood products was 2.598 billion yuan, accounting for 58.56%, a slight increase of 0.25% year-on-year. From 2018 to 2020, the revenue growth of blood products was 15.89%, 9.77% and – 1.99% respectively. The gross profit margin of Hualan Biological Engineering Inc(002007) blood products has decreased for four consecutive years. From 2018 to 2021, the gross profit margin decreased by 2.7%, 1.7%, 0.02% and 1.86% respectively year-on-year. The gross profit margin of blood products in 2021 is 55.26%. By product, the gross profit margin of human albumin was 53.29%, down 2% year-on-year; The gross profit margin of intravenous injection of c-ball was 55.54%, a year-on-year decrease of 3.11%.
For blood products, the gross profit margin decreased, The company’s annual report mentioned “The cost of raw plasma accounts for a high proportion of the total production cost of the company, which is an important factor affecting the cost of blood products of the company. With the continuous increase of the nutrition fee of plasma donors, the cost of plasma is gradually rising; with the increase of the collection volume of raw plasma, the competition among blood products enterprises intensifies, the price may fluctuate, and the comprehensive gross profit margin of blood products may decline, which may have a certain impact on the profits of the company.”
Blood products are a high barrier industry. At present, the plasma collection volume of four head companies Beijing Tiantan Biological Products Corporation Limited(600161) , Hualan Biological Engineering Inc(002007) , Shanghai Raas Blood Products Co.Ltd(002252) , and Taibang biology accounts for about 60% of China’s plasma collection volume. Generally speaking, the output of blood products depends to some extent on the number of plasma collection stations. The number of plasma collection stations in Hualan Biological Engineering Inc(002007) has lagged behind. According to the 2021 annual report, there are currently 25 apheresis stations in Hualan Biological Engineering Inc(002007) , including 4 in Guangxi, 1 in Guizhou, 15 in Chongqing (including 6 apheresis stations) and 5 in Henan. According to the semi annual report of Shanghai Raas Blood Products Co.Ltd(002252) 2021, the company has 41 plasma collection stations (including 1 sub station) Beijing Tiantan Biological Products Corporation Limited(600161) is 55; It is worth noting that Hualan Biological Engineering Inc(002007) has not added a new plasma collection station since 2018.
