Shenzhen Salubris Pharmaceuticals Co.Ltd(002294)
Quarterly report of 2022:
In the first quarter of 2022, the company realized an operating revenue of 935240900 yuan, a year-on-year increase of 22.11%; The total profit was 2678039 million yuan, a year-on-year increase of 43.38%; The net profit attributable to the shareholders of the listed company was 237377400 yuan, a year-on-year increase of 53.09%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 181974500 yuan, a year-on-year increase of 22.88%; The basic earnings per share was 0.22 yuan, a year-on-year increase of 46.67%. Overall, the company’s performance in the first quarter was bright and exceeded expectations.
Subsidiaries introduce war investment. On March 29, Shenzhen Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) Biomedical Engineering Co., Ltd., a wholly-owned subsidiary of the company, planned to introduce strategic investor Cinda Kunpeng fund by means of capital increase and share expansion, with a capital increase of 300 million yuan. After the capital increase, the shareholding ratio of biomedical will be diluted from 100% to 934311%. The company introduces strategic investors through subsidiaries to optimize the company’s capital structure and lay a foundation for further development in the future.
The R & D is progressing smoothly, and the R & D team and funds at hand support the long-term development. During the reporting period, the company’s R & D expenses reached 950617 million yuan, a year-on-year increase of 27.62%. In terms of research and development progress, as of the annual report of 2021, the company has 18 major innovative drug research projects, including 12 chemical drug projects and 6 biological drug projects. Among them, sal095 and sal001 are in the process of listing application, and six projects such as s086 and sal056 have entered clinical phase III. In terms of R & D team, the company has deployed R & D teams in China and overseas, with the scale of R & D team reaching 639 people, including 428 chemical drug team and 127 biological drug team. In terms of capital reserves, as of the end of the first quarter, the company had a monetary capital of 34134414 million yuan, with sufficient funds in hand, providing a strong financial guarantee for a number of R & D projects. In the long run, the company’s R & D is progressing smoothly and has gradually entered the harvest period. With the smooth progress of various R & D projects and the approval of listing, it is expected to provide new growth points for the company.
Increase the scale of repurchase and demonstrate growth confidence. On July 29, 2021, the company said that it planned to buy back 100 million to 200 million yuan of shares for the implementation of equity incentive or employee stock ownership plan. On January 28, 2022, the company said that it would adjust the repurchase amount to “no less than RMB 500 million and no more than RMB 70 million”. The company’s increasing repurchase scale demonstrates the company’s long-term development strategy and confidence. At the same time, the equity incentive scheme will further lock in high-quality talents for the company and improve the company’s own core competitiveness.
Investment suggestion: we expect the diluted EPS of the company from 2022 to 2024 to be 0.58 yuan, 0.68 yuan and 0.81 yuan respectively, and the corresponding dynamic P / E ratios are 39.71 times, 33.67 times and 28.67 times respectively. Considering the expectation of performance recovery and R & D cashing, the buy rating is maintained.
Risk tips: epidemic risk, policy risk and risk of less than expected research and development.
