\u3000\u3 China Vanke Co.Ltd(000002) 294 Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) )
Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) released the first quarter report of 2022. In Q1 of 2022, the company realized an operating revenue of 935 million yuan, a year-on-year increase of 22.11%, and the net profit attributable to the parent company was 237 million yuan, a year-on-year increase of 53.09%. The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 182 million yuan, a growth rate of 22.88%, and achieved eps0 22 yuan.
The company’s Q1 performance was in the median value of the forecast, achieving a good start, sustained and stable, in line with expectations.
On the revenue side, the single quarter revenue of 935 million yuan increased both year-on-year Q1 (766 million) and month on month Q4 (871 million), reflecting that the company has gradually stepped out of the impact of centralized purchase of clopidogrel, and innovative drugs and newly approved generic drugs have driven the company’s revenue side upward. It is worth noting that alisartan axetil, the company’s core product, renewed the national medical insurance catalogue at the end of 2021, with a renewal price of 4.3 yuan (240mg / tablet), a decrease of 29.3%. Q1 on the basis of price reduction, the sales volume was basically flat year-on-year, and the sales growth was slightly higher than expected. We believe that the acceleration trend of the volume after the renewal of alisartan axetil fully reflects the cumulative effect of the volume of drugs for chronic diseases.
On the profit side, the company deducted 182 million yuan of non net profit. Considering the strong R & D investment (the income of R & D expenses accounts for 10.16%), the overall profit growth and income growth are in line with expectations. The difference between the net profit attributable to the parent company and the deduction of non net profit mainly comes from the asset disposal and government subsidies in non recurring profits and losses.
In terms of financial indicators, the company’s Q1 sales expense ratio was 35.40%, an increase of 9.1pp compared with the same period last year (26.30%). The sales expense increased with the increase of product revenue and marketing expenses, and the Q1 investment was large. Follow up continuous observation; The management expense ratio was 6.85%, down 2.75pp from 9.60% in the same period last year, and the management expense was well controlled; The company’s financial expenses decreased by 346.79% year-on-year, mainly due to the decrease of loan interest expenditure in the current period and the increase of deposit interest income. The R & D expense rate was 10.16%, an increase of 0.43pp compared with the same period last year (9.73%), and the R & D investment continued to increase. The company’s financial indicators are good.
The company continues to improve the long-term layout of pipelines in the field of chronic diseases, and subsequent innovation promotes performance growth. With strong R & D investment, the company’s product pipeline has been rapidly expanded and continuously promoted. Teriparatide powder injection has been approved, teriparatide water injection and enaestat have been declared for production, and another 6 phase III clinical varieties continue to be promoted.
Profit forecast and valuation. We expect the net profit attributable to the parent company from 2022 to 2024 to be 632 million yuan, 743 million yuan and 883 million yuan respectively, with an increase of 18.4%, 17.6% and 18.9% respectively. EPS is 0.57 yuan, 0.67 yuan and 0.79 yuan respectively, and the corresponding PE is 39x, 33x and 28x respectively. The company will continue to promote innovation in the future. We are optimistic about the long-term development of the company and maintain the “buy” rating.
Risk warning: risk of R & D failure; The risk of price decline caused by policy changes; Risks of rising costs, etc.
