\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 436 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) )
Event: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) released the 2021 annual report. During the reporting period, the operating revenue was 8.022 billion yuan (year-on-year + 23.20%), and the net profit attributable to the parent company was 2.431 billion yuan (year-on-year + 45.46%). The opening of online channels and the expansion of experience halls led to growth, and the performance growth was in line with expectations.
21q4 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) low base, rapid growth, and significant increase in R & D expenses. 21q4 achieved an operating revenue of 1.91 billion yuan (year-on-year + 32.55%), and a net profit attributable to the parent company of 420 million yuan (year-on-year + 22.60%). 21q4 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (drugs for liver diseases) achieved revenue of 707 million yuan (year-on-year + 133.33%), including 640 million yuan (year-on-year + 144.27%) in China and 67 million yuan (year-on-year + 63.41%) abroad, realizing rapid growth under low base. 21q4 most of the rates are stable, only the R & D expenses reached 101 million yuan (year-on-year + 1920%), and the R & D expense rate reached 5.30%, the highest in a single quarter in recent three years, with a year-on-year increase of 4.96 PCTs, which is expected to be caused by the company’s increased R & D investment.
Core products grew rapidly, and the product echelon was gradually improved. In 2021, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) (drugs for liver diseases) achieved a revenue of 3.701 billion yuan (year-on-year + 45.75%), cardiovascular drugs (Angong Niuhuang Pill after 21q2) achieved a revenue of 96 million yuan (year-on-year + 316631%), and high gross margin protected varieties with strong brand continued to expand with the help of experience hall and online channels.
The experience hall expanded rapidly. According to the data of Gaode map, there were 380 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) experience pavilions at the end of 2021, an increase of 120 (year-on-year + 46%) over the end of 2020, covering 31 provinces and municipalities directly under the central government, and there are more than 10 experience pavilions in 12 provinces and municipalities directly under the central government.
Give “overweight” rating. It is estimated that the net profit attributable to the parent company in the next three years will be 3.001/3.639/4.386 billion yuan respectively, and the corresponding PE will be 68.4x/52.3x/43.4x respectively. Considering that the company is a leader in the traditional Chinese medicine industry, and its core products have the strength of both volume and price rise, it is not affected by the price reduction of centralized procurement, so it is rated as “overweight”.
Risk tip: the expansion speed of the experience hall is lower than the expected risk, the risk of insufficient supply of raw materials or higher price than the expected risk, and the risk of epidemic counterattack
