\u3000\u3 Shengda Resources Co.Ltd(000603) 439 Guizhou Sanli Pharmaceutical Co.Ltd(603439) )
Main points:
Event:
On April 21, 2022, the company disclosed the annual report of 2021. During the reporting period, the company achieved a revenue of 939 million yuan, a year-on-year increase of 48.99%; The net profit attributable to the parent company was 152 million yuan, a year-on-year increase of 62.08%; Deduct non net profit of 136 million yuan, an increase of 45.25% year-on-year; The basic earnings per share is 0.37 yuan.
Meanwhile, the company disclosed that in the first quarterly report of 2022, the main revenue of 2022q1 was 159 million yuan, a year-on-year increase of 22.86%; The net profit attributable to the parent company was 237296 million yuan, a year-on-year increase of 1.23%; Deduct non net profit of 211485 million yuan, a year-on-year decrease of 4.54%.
Analysis and comments
Open throat sword resumed growth and echelon products began to break through. According to the products, the income of Kai Yan spray (including children type) was 879 million yuan, up +46.64% from the same period. The gross profit margin was 69.96%, with a year-on-year increase of 2.64 percentage points. The revenue of Qiangli Tianma Eucommia capsule was 35 million yuan, with a year-on-year growth rate of + 21.28%; The gross profit margin was 64.49%, an increase of 7.81 percentage points year-on-year. Other echelon products began to break through, with a revenue of 25 million yuan, with a year-on-year growth rate of + 128351%.
In 2021, the company’s overall gross profit margin was 70.50%, a year-on-year increase of + 3.66 percentage points; The expense rate during the period was 53.34%, with a year-on-year increase of + 4.70 percentage points; Among them, the sales expense rate was 48.01%, with a year-on-year increase of + 4.10 percentage points; The management fee rate was 5.28%, with a year-on-year increase of + 0.03 percentage points; The financial expense rate was 0.05%, year-on-year + 0.57 percentage points; The net operating cash flow was 155 million yuan, a year-on-year increase of + 145.13%. Hanfang pharmaceutical industry developed steadily, and dechangxiang reorganized and expanded its product line. (1) Hanfang Pharmaceutical (25.64%) has a revenue of 422 million yuan and a profit of 26 million yuan in 2021. (2) At the end of 2021, the company participated in the public recruitment of investors in the bankruptcy reorganization of dechangxiang, and became the reorganization investor of dechangxiang in January 2022 by the ruling of Guiyang intermediate people’s court. After the bankruptcy reorganization in 2022, the company will officially acquire 95% equity of dechangxiang. It is expected that the consolidation of “dechangxiang” in 2022 will bring performance increment to the company.
Market and research and development of two wheel drive. In terms of market development, the layout of medical institutions has achieved initial results, with more than 340 new first terminals, more than 20 top 100 chain pharmacies and more than 6000 grass-roots medical institutions. Moreover, the wholly-owned subsidiary sanlizhong has gradually developed, and its marketing planning and promotion service ability has begun to show. In terms of research and development, with the help of the characteristics of Miao medicine and children’s medicine, we began to develop new traditional Chinese medicine. The company began to conduct a large number of new drug research, including: (1) spend a total of about 50 million yuan to develop modern preparations and new drugs with ancient classic prescriptions extracted from the catalogue of ancient classic prescriptions issued by the State Administration of traditional Chinese medicine; (2) The exclusive patent prescription of traditional Chinese medicine from Professor Zhang Jun, a master of pediatric traditional Chinese medicine and the First Affiliated Hospital of Liaoning University of traditional Chinese medicine, is used for the development and research of exploratory new drugs of Zidan granule (New Chinese medicine class 1) for children’s purpura disease.
The company began to lay out DTP pharmacy. In 2021, Xiaoneng Pharmaceutical Technology Co., Ltd. and Hunan wanxiaoer chain pharmacy were established. With the combination of online diagnosis and treatment + hospital side pharmacy, they began to explore the layout to the downstream retail end. Xiaoneng medical technology (Chengdu) Co., Ltd. (holding 53%) invested and established in July 2021 mainly cooperates with hospitals to carry out Internet hospitals, online diagnosis and treatment, chronic disease management and other businesses. At present, Xiaoneng pharmaceutical technology is still in an early loss state, with a loss of 7.2 million yuan in 2021. It is expected that the net profit of Q1 deduction from non parent company will be greatly affected in 2022. Performance enhanced confidence in the completion of the stock incentive plan: in the restricted stock incentive plan (Draft) issued by the company in 2021, the performance evaluation target levels from 2022 to 2024 are 180 million yuan, 215 million yuan and 330 million yuan respectively, with a compound growth rate of about 37%. On the basis of good performance in 2021, we look forward to the company’s continuous performance in the future when the company’s strategy is gradually implemented.
Investment advice
Due to the update of the company’s annual report, the previous profit forecast was adjusted. We expect that the company’s revenue from 2022 to 2024 will be 1.22/15.3/1.86 billion yuan respectively, with a year-on-year increase of 29.9% / 25.4% / 21.6% respectively; Considering the potential losses brought by the newly established subsidiary in the early stage of business development, the net profit attributable to the parent company is expected to be RMB 180 / 2.5 / 340 million respectively, with a year-on-year increase of 19.8% / 38.7% / 34.2%, corresponding EPS of RMB 0.44/0.62/0.83 and corresponding valuation of 31x / 23x / 17x. Maintain the “buy” investment rating.
Risk tips
Marketing expansion is less than expected; Large variety dependence risk; The risk that the implementation of acquisition strategy is less than expected; The loss of the new company exceeded expectations, etc.
