\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 436 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) )
Event:
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) released the annual report of 2021, and realized an operating revenue of 8.022 billion yuan in 2021, with a year-on-year increase of 23.2%; The net profit attributable to shareholders of listed companies was 2.431 billion yuan, a year-on-year increase of 45.46%; The basic earnings per share is 4.03 yuan. The company plans to pay a cash dividend of 12.10 yuan (including tax) for every 10 shares. The company released the first quarter report of 2022. In the first quarter, the net profit attributable to the owner of the parent company was 689 million yuan, a year-on-year increase of 21.93%; The operating revenue was 2.348 billion yuan, a year-on-year increase of 17.3%; The basic earnings per share was 1.14 yuan, a year-on-year increase of 21.28%.
Comment analysis
The gross profit margin increased and the expense rate decreased. In 2021, the company's overall gross profit margin was 50.72%, a year-on-year increase of + 5.56 percentage points; The expense rate during the period was 14.24%, with a year-on-year increase of -1.42 percentage points; Among them, the sales expense rate was 8.11%, with a year-on-year increase of - 1.82 percentage points; The management fee rate was 7.18%, with a year-on-year increase of + 0.53 percentage points; The financial expense rate was -1.05%, with a year-on-year increase of -0.13 percentage points; The net operating cash flow was 462 million yuan, a year-on-year increase of - 68.49% (the company's time deposits increased and are not listed as cash and cash equivalents). The overall gross profit margin of 2022q1 company was 49.05%, year-on-year + 0.78 percentage points; The expense rate during the period was 13.34%, with a year-on-year increase of -0.03 percentage points; Among them, the sales expense rate was 7.03%, with a year-on-year increase of - 2.02 percentage points; The management fee rate was 6.90%, with a year-on-year increase of + 1.95 percentage points.
By quarter, the company's Q1-Q4 single quarter revenue was RMB 2.002 billion, RMB 1.847 billion, RMB 2.263 billion and RMB 1.910 billion respectively, with year-on-year growth rates of + 16.76, + 20.57, + 24.09 and + 32.55% respectively. The Q1-Q4 single quarter net profit attributable to the parent company was RMB 565 million, RMB 550 million, RMB 896 million and RMB 420 million respectively, with year-on-year growth rates of + 20.84, + 38.54, + 93.08 and + 22.60% respectively. The Q1-Q4 single quarter net profit deducted from non attributable to the parent company was RMB 560 million, RMB 555 million, RMB 891 million and RMB 400 million respectively, with year-on-year growth rates of + 21.02, + 40.32 +92.51、+49.18%。
Core products Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) continued high growth. In terms of splitting, part of the revenue of pharmaceutical manufacturing industry was 3.972 billion yuan, with a year-on-year growth rate of + 45.36%; The gross profit margin was 78.37%, an increase of 0.74 percentage points year-on-year. Among them, the income of liver disease medication (mainly Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ) was 3.701 billion yuan, with a year-on-year growth rate of + 45.75%; The gross profit margin was 81.79%, a year-on-year decrease of 0.16 percentage points. The revenue of the pharmaceutical circulation industry was 3.146 billion yuan, with a year-on-year growth rate of + 10.64%; The gross profit margin was 12.01%, with a year-on-year increase of 3.15 percentage points.
The "two wings" are limited by the short-term impact. The revenue of cosmetics and daily chemical industry was 841 million yuan, with a year-on-year growth rate of - 7.05%; The gross profit margin was 67.01%, with a year-on-year increase of 6.49 percentage points. Among them, Fujian Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Cosmetics Co., Ltd. had a revenue of 685 million yuan (a year-on-year increase of 12%) and a profit of 134 million yuan. Zhangzhou Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) Shanghai Jahwa United Co.Ltd(600315) oral care Co., Ltd. has a revenue of 150 million yuan (a year-on-year decrease of 6.43%, which is caused by the recognition of deferred income tax assets, the optimization of marketing channels and the decline of sales expense rate in accordance with the accounting standards), and a profit of 33.8 million yuan. The income of food was 45 million yuan, with a year-on-year growth rate of + 298.79%; The gross profit margin was 14.63%, a year-on-year decrease of 4.97 percentage points.
Continuous follow-up of R & D. Apixaban tablets, a class 4 chemical drug used to prevent venous thromboembolism, has obtained the drug registration certificate, which is the first chemical product deemed to have passed the consistency evaluation by the company as the holder of the marketing license; Notice of approval of new drug research and development (H2S P1) for fibromyalgia treatment project. In addition, as a commissioned manufacturer, the company assisted the Institute of clinical basic medicine of traditional Chinese medicine of the Chinese Academy of traditional Chinese medicine to obtain the anti epidemic new drug Qingfei Paidu granule (class 3.2 drug registration certificate). At the same time, 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.
Build its own Angong brand and keep musk deer layout to ensure the stability of raw materials Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) brand Angong Niuhuang Pill combines the national pilot operation with the layout of experience halls, makes full use of the dealer channel network in the pilot area and Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) brand advantages, covers more than 300 national experience halls and more than 50 chain 5000 terminal stores in China, and quickly enters the market. In July 2020, the company invested and held the longhui pharmaceutical project with the production qualification of the classic famous fangangong Niuhuang Pill, which has now achieved profitability. The company has invested and established two musk deer breeding companies in Shaanxi and Sichuan, cooperated with many musk deer breeding bases, actively developed farmers' musk deer breeding, provided technical and seed source services to farmers, and promoted the development of local forest musk deer breeding industry.
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 RMB 94.0/112.8/13.33 billion respectively, with a year-on-year increase of 17.2% / 19.9% / 18.2% respectively, the net profit attributable to the parent company will be RMB 3.0/37.0/4.5 billion respectively, with a year-on-year increase of 23.4% / 23.1% / 21.8% respectively, the corresponding EPS will be RMB 4.98/6.12/7.46, and the corresponding valuation will be 60x / 48x / 40x. Maintain the "buy" investment rating.
Risk tips
The company's promotion is less than expected, the price of raw materials fluctuates, and the growth rate of daily chemical / cosmetics business is less than expected.
