\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 436 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) )
The performance in 2021 is in line with expectations. Recently, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 8.022 billion yuan, a year-on-year increase of 23.2%, a net profit attributable to the parent of 2.431 billion yuan, a year-on-year increase of 45.46%, and a net profit not attributable to the parent of 2.406 billion yuan, a year-on-year increase of 51.4%. In 2021, Q4 achieved a revenue of 1.91 billion yuan, a year-on-year increase of 32.55%, a net profit attributable to the parent of 420 million yuan, a year-on-year increase of 22.6%, and a net profit deducted from non attributable to the parent of 400 million yuan, a year-on-year increase of 49.18%. The company released the performance forecast of Q1 in 2022. It is expected to realize the net profit attributable to the parent company of 678701 million yuan, a year-on-year increase of 20% - 24%, deducting the net profit not attributable to the parent company of 678700 million yuan, a year-on-year increase of 21% - 25%, which is mainly due to the rapid growth of performance brought by the expansion of new channels. The decrease in net cash flow from operating activities was mainly due to the fact that time deposits were not listed as cash and cash equivalents. The monetary capital of the company was 7.097 billion yuan at the end of 2021, a year-on-year increase of 37.31%, accounting for 56.8% of total assets, maintaining a high level. In 2021, the gross profit margin of the company was 50.72%, with a year-on-year increase of 5.56pct, the sales expense rate / management expense rate / R & D expense rate / financial expense rate were 8.11% / 7.18% / 2.49% / - 1.05%, a year-on-year increase of -1.82pct/0.53pct/0.99pct / - 0.13pct, a net profit margin of 30.72%, a year-on-year increase of 4.77pct, a roe of 27.68% and a year-on-year increase of 4.61pct.
Channel expansion drives the rapid growth of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series. The core variety Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series achieved a revenue of 3.701 billion yuan in 2021, with a year-on-year increase of 45.77%, accounting for 46.14% of the total revenue and a gross profit margin of 81.79%, which was flat year-on-year. 2021q4 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series achieved revenue of 700 million yuan, with a year-on-year increase of 130%, maintaining a high-speed growth trend. In 2021, we strengthened channel expansion, added Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Hongren health center and its retail stores, special retail supply of capsule dosage forms, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) tmall flagship store and JD flagship store, and the number of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) experience centers increased significantly. The sales revenue of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series products in China reached 3.3 billion yuan, a year-on-year increase of 53%. The cultivated variety Angong Niuhuang Pill achieved a revenue of nearly 100 million yuan and a gross profit margin of 50.72% in 2021. It is in a rapid volume period under the coordination of the original sales channels. The daily chemical sector achieved an income of 841 million yuan, with a gross profit margin of around 67%, maintaining a high level. The revenue of the pharmaceutical circulation sector was 3.146 billion yuan, an increase of 11% year-on-year, maintaining steady growth. By the end of 2021, the company's inventory reached 2.438 billion yuan, a year-on-year increase of 11.27%, including 1.493 billion yuan of raw materials such as musk deer and bezoar, a year-on-year increase of 11.67%.
R & D investment has increased, and the R & D of new products is progressing smoothly. The company actively carries out the secondary development of advantageous varieties with Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) as the core and the research and development of new products such as innovative traditional Chinese medicine, classic famous prescriptions and innovative chemical drugs. In 2021, the company's R & D expenditure was 200 million yuan, a year-on-year increase of 103%, and the proportion of R & D expenditure in pharmaceutical manufacturing revenue was 5.04%. In 2021, apixaban tablets obtained the drug registration approval, and the chemical class 1 new drug pzh2107, a cooperative R & D project for the treatment of fibromyalgia, entered clinical phase I. The company has also entered the clinical research stage with three new drugs of chemical medicine category 1, two new drugs of traditional Chinese medicine category 1.1 and one new drug of traditional Chinese medicine category 1.2, and initially formed the R & D layout and pipeline with the characteristics of Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) brand.
Profit forecast and investment rating: considering the growth in the number of experience pavilions and the strength of online channels, it is estimated that the operating revenue in 20222024 will be RMB 9.284/11.18/13.159 billion respectively, with a year-on-year increase of 15.7% / 18.7% / 19.4%, the net profit attributable to the parent company will be RMB 2.796/33.4/3.992 billion respectively, with a year-on-year increase of 15% / 19.5% / 19.5%, and the EPS will be 4.63/5.54/6.62 respectively, corresponding to the P / E ratio of 66.15/55.38/46.34 times in 20222024. Considering the product power and scarcity of the company, 70X valuation in 2022, first coverage, buy rating.
Stock price catalyst: online sales exceeded expectations, and the construction of experience hall was accelerated.
Risk factors: epidemic prevention and control led to lower performance and product sales than expected.
