\u3000\u3 China Vanke Co.Ltd(000002) 332 Zhejiang Xianju Pharmaceutical Co.Ltd(002332) )
Events. The company issued the annual report of 2021. In 2021, the company achieved an operating revenue of 4.337 billion yuan, a year-on-year increase of 7.92%, the net profit attributable to the parent company was 616 million yuan, a year-on-year increase of 22.09%, and the net profit deducted from non net profit was 581 million yuan, a year-on-year increase of 26.46%.
In Q4 of 2021, the company achieved an operating revenue of 1.020 billion yuan, a year-on-year decrease of 6.01%, the net profit attributable to the parent company was 157 million yuan, a year-on-year increase of 7.30%, and the net profit deducted was 133 million yuan, a year-on-year increase of 15.05%.
Point of view. The performance in 2021 is in line with expectations, with sustained and steady growth. It is a high-quality target with high cost performance.
In 2021, it continued to grow steadily, and the preparation business performed well. Split according to product pipeline:
Preparation: the sales revenue was 2.498 billion yuan, a year-on-year increase of 20%.
The sales revenue of gynecological family planning preparations was 525 million yuan, a year-on-year increase of 10%;
The sales revenue of anesthetic muscle pine products was 643 million yuan, a year-on-year increase of 23%;
The sales revenue of respiratory preparations was 521 million yuan, a year-on-year increase of 42%;
Dermatology products amounted to 148 million yuan, a year-on-year increase of 6%;
The sales revenue of general pharmaceutical preparations was 480 million yuan, a year-on-year increase of 10%;
Other outsourcing agent products are RMB 20 million.
APIs and intermediates: the sales revenue was 1.793 billion yuan, a year-on-year decrease of 4.6%.
The sales revenue of self operated API was 786 million yuan, a year-on-year decrease of 4.5%;
The sales revenue of Italian newchem company was 604 million yuan, a year-on-year decrease of 4.3%;
The sales revenue of Haisheng pharmaceutical company was 64 million yuan, a year-on-year decrease of 55%,
The sales revenue of Xianyao trading company is 134 million yuan and the trade of other APIs is 205 million yuan.
In terms of financial indicators, the gross profit margin of the company’s sales was 58.23%, an increase of 2.59pct compared with last year (55.64%); The net profit margin on sales was 14.25%, an increase of 1.09pct compared with last year (13.16%); We believe that it is caused by the increase of preparation sales and the improvement of product structure. The company’s sales expense ratio was 29.51%, an increase of 2.25 PCT over last year (27.26%); The management fee rate was 6.46%, up 0.29pct from last year (6.17%); The company’s R & D expense rate was 5.61%, an increase of 0.42pct over last year (5.19%), and the company continued to invest in R & D. The company’s financial expense ratio was 0.00%, a decrease of 2.13pct compared with last year (2.13%), mainly due to the decrease in interest expenses and exchange gains and losses.
Profit forecast and valuation. The company is a leader in the field of steroids. The integrated layout of preparations was earlier, the four major preparation businesses developed together, and the respiratory department grew rapidly; By upgrading its own production capacity and acquiring high-end production capacity, the company seeks breakthroughs in medium and high-end production capacity and gradually expands overseas standardized markets. According to the latest annual report, we adjusted the profit forecast. It is estimated that the total revenue of the company from 2022 to 2024 is expected to reach 4.868 billion yuan, 5.644 billion yuan and 6.676 billion yuan, with a year-on-year increase of 12.2%, 15.9% and 18.3% respectively; The net profit attributable to the parent company is expected to reach 743 million yuan, 899 million yuan and 1096 million yuan, with a year-on-year increase of 20.6%, 21.0% and 21.9% respectively; EPS is 0.75 yuan, 0.91 yuan and 1.11 yuan respectively, and the corresponding PE is 12x, 10x and 8x respectively, with high valuation cost performance. Maintain the “buy” rating.
Risk warning: price fluctuation risk of API; The risk that the sales of preparations are less than expected; Risk that R & D progress is less than expected.
