\u3000\u30 Shenzhen Fountain Corporation(000005) 13 Livzon Pharmaceutical Group Inc(000513) )
Event:
The company released the first quarter report of 2022. In the first quarter, the revenue was 3.479 billion, a year-on-year increase of 3.86%, the net profit attributable to the parent was 553 million, a year-on-year increase of 6.47%, and the net profit deducted from non attributable to the parent was 561 million, a year-on-year increase of 15.61%. The performance was in line with expectations.
Comments:
High end preparations and APIs drive performance growth
The revenue growth in this period is mainly driven by high-end preparations and APIs. The revenue of chemical preparation business is 2.11 billion (year-on-year + 10.90%), of which the revenue of gastrointestinal products is 1.07 billion (year-on-year + 5.90%), which is expected to be mainly driven by iprazole; The revenue of sex hormone products was 737 million (year-on-year + 22.84%), and the revenue of mental products was 133 million (year-on-year + 30.87%). The revenue of API and intermediates reached 900 million (year-on-year + 16.13%), which is expected to be mainly due to the development of high-end API and overseas market development.
Increase R & D efforts and drive diversified performance growth
The company’s R & D expenses in the first quarter reached 289 million (year-on-year + 24.56%). In April, the company obtained the registration certificate of covid-19 antigen detection kit and enriched the detection and diagnosis products; Interim analysis of phase III clinical of recombinant covid-19 vaccine V01. China has applied for conditional listing and sought emergency use authorization overseas; Among the high-end preparations, triptorelin microspheres have completed phase III clinical trial, and the production application of IL-6R monoclonal antibody has been accepted. In addition, there are many microspheres and monoclonal antibody products under research, which can grow for a long time.
Maintain the “overweight” rating
The company has a wide range of products. High-end preparations / APIs / diagnostic reagents / traditional Chinese medicine have driven the company’s performance growth. In the future, relying on high-end preparations / innovative drugs and other products, the company is optimistic about the transformation and long-term development of the company. Maintain the original forecast, that is, the revenue in 22-24 years is respectively 126.91/145.36/16.782 billion, the net profit is respectively 19.67/22.52/25.97 billion, the corresponding closing price PE on April 21 is 16 / 14 / 12 times, and the three-year CAGR is 13.50%, maintaining the “overweight” rating.
Risk tips
Vaccine development is not as expected; The sales of iprazole were lower than expected; API expansion is lower than expected
