\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 285 Henan Lingrui Pharmaceutical Co.Ltd(600285) )
Revenue grew steadily, the profit side exceeded the assessment target of equity incentive, and maintained the “buy” rating
On April 25, the company released its annual report for 2021: the revenue in 2021 was 2.694 billion (+ 15.52%); The net profit attributable to the parent company was 362 million yuan (+ 11.08%); Realized a net profit of 355 million (+ 18.46%); Net operating cash flow: 846 million (+ 87.71%); At the same time, the company released the first quarterly report of 2022: the revenue of 2022q1 was 682 million (+ 15.73%); The net profit attributable to the parent company was 131 million yuan (+ 35.41%); Net profit of 105 million (+ 15.99%); Net operating cash flow was 86 million (- 39.41%). For the whole year of 2021, according to the company’s equity incentive assessment indicators, the net profit deducted after excluding the impact of equity incentive expenses increased by 24% in 2021, exceeded the assessment target of 20%, and the income maintained a steady growth in 2022q1. We maintain the profit forecast for 20222023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 455 million yuan, 572 million yuan and 684 million yuan respectively, and the EPS will be 0.80/1.01/1.21 yuan respectively. The corresponding PE of the current stock price is 12.6, 10.1 and 8.4 times respectively, maintaining the “buy” rating.
The revenue of the patch increased steadily, and the channel reform achieved good results. According to the products, the revenue of the company’s patch achieved a steady growth of 14.6%. Among them, the sales volume of Tongluo Qutong ointment increased by 11%, and Zhuanggu musk analgesic ointment achieved a growth breakthrough of less than 5% in the past, with an increase of 8.5%. It is expected to be related to the promotion of volume after product upgrading. The tablet revenue achieved a high growth of 36.6%, and Danlu Tongdu tablet was the main contribution source of tablet revenue. Due to the company’s marketing reform in recent years, promoting the selection of high-quality agents, more than 7800 hospitals at all levels were newly developed throughout the year, which promoted the sales of Danlu Tongdu tablet to increase by 20%. At the same time, benefiting from the selection of high-quality agents, the capsule achieved a steady growth of 16%. Ointment revenue decreased by 10.3% year-on-year.
It is firmly the leader in the Chinese patent medicine patch market, and the sales volume of “two tigers” series products is in the leading position in the market. According to the statistics of MI nei.com, in 2021, the total market share of Chinese patent medicine patch products in China’s urban physical pharmacies exceeded 80%. The company’s products Tongluo Qutong ointment, bone strengthening musk analgesic ointment, musk bone strengthening ointment and other six products all ranked in the top 20 in sales volume, becoming the enterprise with the largest number of products on the list. According to the retail terminal data statistics of the chis Kaisi system of Zhongkang information in 2020, the sales volume of the company’s “two tigers” series products (mainly including bone strengthening musk analgesic ointment, dampness relieving ointment, joint analgesic ointment, musk bone strengthening ointment, etc.) is in a leading position in the market.
Risk warning: product sales are less than expected; Market competition intensifies.
