\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 436 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) )
Event: Recently, the company released the first quarterly report of 2022. In 2022q1, the company achieved an operating revenue of 2.348 billion yuan, a year-on-year increase of 17.3%, the net profit attributable to the parent company was 689 million yuan, a year-on-year increase of 21.93%, deducting the net profit not attributable to the parent company of 676 million yuan, a year-on-year increase of 20.78%, and the net cash flow from operating activities was 506 million yuan, a year-on-year decrease of 25.5%.
Comments:
2022q1 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series products increased by 21.19% year-on-year, maintaining rapid growth. In the first quarter of 2022, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series products achieved a revenue of 1.101 billion yuan, a year-on-year increase of 21.19%, and China contributed 966 million yuan, a year-on-year increase of 21.36%. Angong Niuhuang Pill achieved a revenue of 65 million yuan, a significant increase year-on-year, close to about 70% of last year, showing a rapid and large-scale trend. The revenue of the pharmaceutical circulation sector was 941 million yuan, a year-on-year increase of 17.67%. The daily chemical sector contributed 190 million yuan, a year-on-year decrease of 13.20%. The revenue of food and health products reached 32 million yuan, a year-on-year increase of 561.24%.
Maintain a strong level of profitability. In 2022q1, the company's comprehensive gross profit margin was 49.05%, a year-on-year increase of 0.78pct, Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) series gross profit margin was 80.23%, Angong Niuhuang Pill gross profit margin was 47.47%, circulation sector gross profit margin was 10.57%, and daily chemical sector gross profit margin was 69.09%. The company's sales expense rate, management expense rate and financial expense rate were 7.03%, 6.9% and - 0.59% respectively, with a year-on-year decrease of 2.02pct, - 1.96pct and 0.03pct. The company's net interest rate was 30.01%, up 0.5pct year-on-year. At the end of March 2022, the scale of monetary funds increased compared with the end of 2021, reaching nearly 7.5 billion yuan, accounting for nearly 70% of net assets. At the end of 2022q1, the inventory scale of the company reached nearly 2.5 billion yuan, the same as that at the end of 2021.
Profit forecast and investment rating: it is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 92.84/11.18/13.159 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 27.86/33.20/3.971 billion respectively, with a year-on-year increase of 14.6% / 19.2% / 19.6%, EPS will be RMB 4.62/5.5/6.58 respectively, and the corresponding P / E ratio from 2022 to 2024 will be 64.14/53.83/44.99 times. Considering the product power and scarcity of the company, Maintain the "buy" rating of the company.
Risk factors: epidemic prevention and control led to lower performance and product sales than expected.
