\u3000\u30 Zhongyan Technology Co.Ltd(003001) 81 Zhejiang Jolly Pharmaceutical Co.Ltd(300181) )
Event: the company released its 2021 annual report, realizing an operating revenue of 1.46 billion yuan, a year-on-year increase of 33.6%; The net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 102%; The net profit attributable to the parent company after deduction was 170 million yuan, with a year-on-year increase of 106.4%.
Wuling series is growing rapidly, and its long-term volume is worth looking forward to. In 2021, the company’s revenue from Wuling series products was 850 million yuan, a year-on-year increase of 40.2%. Wuling capsule, as the core product, has been growing steadily after entering the basic drug list in 2018. In 2020, Wuling capsule added several guidelines to the New Coronavirus pneumonia epidemic stress psychosomatic health assistance manual, and further promoted sales. At present, Wuling series products have exceeded 850 million yuan, and Wuling capsule is expected to become the 2 billion largest variety.
Bailing series is growing rapidly and the competition pattern is expected to remain good. In 2021, the company’s bailing series products achieved a revenue of 270 million yuan, a year-on-year increase of 24.3%. Bailing film is a variety acquired by the company, with a good market competition pattern and high R & D and production barriers, which has maintained rapid growth. At present, the total sales of similar products in the market exceeds 5 billion yuan. The current revenue volume of the company’s products is relatively small, and there is still a large growth space in the future.
Traditional Chinese medicine formula granule business is expected to benefit from the policy and become a new growth point of the company. In 2021, the company’s revenue from traditional Chinese medicine formula granules was 40 million yuan, a year-on-year increase of 31.8%. Since 2017, the company has entered the traditional Chinese medicine formula granule industry and become one of the four pilot enterprises in Zhejiang Province. In 2020, the company’s traditional Chinese medicine formula granule revenue has exceeded 30 million yuan. The company entered the traditional Chinese medicine formula granule industry earlier, with a relatively large number of varieties and high product quality. It is expected to seize the industry opportunity, and the traditional Chinese medicine formula granule is expected to become a new growth point of the company.
Equity participation in Keji biology is expected to contribute to investment income in the future. Keji biology is a clinical biomedical company established in Shanghai in 2014. Its legal representative is Dr. Li Zonghai. In 2021, Keji biology landed in Hong Kong stocks. At present, the car-t product ct053 for the treatment of multiple myeloma targeting BCMA is the product with the fastest progress in the research and development of Keji biology. At present, it is in the key II / III clinical stage, followed by claudin18 The progress of car-t product ct041 of 2 is also relatively fast. It is expected that with the gradual listing of products, it is expected to contribute some investment income to the company in the future.
Profit forecast and rating. The company is the leader in China’s Wuling industry. The main products Wuling capsule and bailing tablet are expected to continue to maintain rapid growth with the increase of sales. At the same time, the company’s traditional Chinese medicine formula granule business is expected to become a new growth point. Its performance has entered the accelerated growth stage, and its long-term development is worth looking forward to. Give the company a price earnings ratio of 25 times in 2022 and a “buy” rating corresponding to the target price of 11 yuan.
Risk warning: sales are less than expected; Risk of centralized purchase; Risk that the progress of products under development is less than expected.
