\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 976 Jianmin Pharmaceutical Group Co.Ltd(600976) )
Event:
Jianmin Pharmaceutical Group Co.Ltd(600976) announcement: in the first quarter of 2022, the company achieved revenue of 918 million yuan (+ 9.1%), net profit attributable to parent company of 88.71 million yuan (+ 25.95%), net profit not attributable to parent company of 79.81 million yuan (+ 20.39%).
In the first quarter, the performance grew steadily and the net interest rate increased steadily. In the first quarter of 2022, the company achieved revenue of 918 million yuan (+ 9.1%), net profit attributable to parent company of 88.71 million yuan (+ 25.95%), net profit not attributable to parent company of 79.81 million yuan (+ 20.39%) deducted, and gross profit margin of the company in the first quarter of 2022 was 42.99%, a year-on-year decrease of 3.73 percentage points; The net interest rate was 9.67%, with a year-on-year increase of 1.27 percentage points. The net cash flow from the company’s operating activities decreased compared with the same period of last year, mainly due to the increase of cash flow paid by the company according to the business scale, such as purchase and preparation, payment of advertising and other sales expenses, wages and taxes.
Jianmin Dapeng contributes to the profit growth and is optimistic about the market space for in vitro cultivation of bezoar. According to the company’s financial report, in the first quarter of 2022, the company’s investment income in associates and joint ventures was about 40 million yuan (mainly from Jianmin Dapeng), a year-on-year increase of about 30%; In 2021q1 / Q2 / Q3 / Q4, the company’s investment income in associates and joint ventures was about 3078 / 2890 / 3453 / 18260000 yuan respectively, with a year-on-year increase of about 485% / (- 46%) / 52% / 35% respectively. Jianmin Dapeng is the only manufacturer and supplier of in vitro cultured bezoar in China. In vitro cultured bezoar overcomes the shortcomings of scarce output and relatively poor quality uniformity of natural bezoar. At the same time, it is basically the same as natural bezoar in terms of active ingredient content and efficacy. It is approved to replace natural bezoar and apply it to 38 Chinese patent medicine varieties for clinical acute and serious diseases, with high patent barriers, long-term exclusivity in the future and large market space.
In its own business, the large single products of Longmu Zhuanggu Granule grew steadily, and the series of traditional Chinese medicine prescription drugs benefited from the rapid growth supported by the basic drug 986 policy. We are optimistic about the sustainability of the company’s long-term performance growth. The company has three brands: Jianmin, Longmu and ye Kaitai, with significant brand advantages. With the increase of the company’s marketing investment and the further penetration of brand publicity, we can see the sustainable growth of Longmu Zhuanggu Granule. In addition, the other half of the revenue of the company’s own pharmaceutical industry mainly comes from the series of traditional Chinese medicine prescription drugs. Among them, Jianpi Shengxue granule / tablet (exclusive production), Xiaoer baotaikang granule (two manufacturers) and Xiaojin capsule (two capsule dosage forms) are the varieties of the 2018 National basic drug catalogue, which is expected to achieve sustained and rapid growth with the support of the basic drug 986 policy. Overall, we are optimistic about the long-term rapid growth of the company’s own pharmaceutical industry.
Yekai Thai pharmaceutical subsidiary built new workshops to increase production capacity. The company announced that it plans to build a new comprehensive preparation workshop in yekai Thai pharmaceutical production Park, with a total investment of about 280 million yuan and a planned construction period of 2 years. After the completion of the project, the production capacity is expected to reach about 4600 tons of granules, 1.1 billion capsules, 1 billion tablets, 2.64 million bottles of liquid preparations of traditional Chinese medicine and 500000 bottles of liquid preparations of Western medicine every year. With the gradual launch of new production capacity in the future, the long-term growth of the company will be further guaranteed.
The profit forecast and investment rating are expected to be RMB 2.54/3.13/3.85 from 2022 to 2024 respectively, corresponding to 19.2/15.6/12.7 times of the current share price PE. The company has significant brand advantages, steady growth of large single products, Jianmin Dapeng continues to contribute profits, is optimistic about the stability of the company’s long-term performance and maintains the buy in rating.
The risk suggests that the sales of Longmu Zhuanggu Granule is less than expected; Price reduction risk of centralized purchase; The epidemic affects the operation of pharmaceutical business; Increased competition; Macroeconomic development is less than expected; Medical policy risk, etc.
