\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 436 Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) )
Company performance: in 22q1, the company achieved a revenue of 2.35 billion yuan, yoy + 17.3%, and recorded a net profit of 690 million yuan, yoy + 21.9%, yoy + 20.8% after deduction, which is in the middle of the performance forecast range and in line with expectations. According to the calculation of the company’s operating data from January to February released in early March (revenue is about 1.6 billion, yoy + 16%, net profit is about 600 million, yoy + 20%), the company’s monthly revenue and net profit in March are about 750 million yuan and 90 million yuan respectively, and the growth rate is estimated to increase steadily compared with that from January to February.
Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) products maintained a rapid growth rate, and Angong Niuhuang pills increased rapidly: (1) the company’s Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ingots, capsules and other liver diseases drugs Q1 achieved a revenue of 1.1 billion yuan, yoy + 20%. Driven by the concerted efforts of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) stores, it maintained a rapid growth, with a gross profit margin of 80.2%, a slight decrease of 0.8 percentage points year-on-year, which is estimated to be affected by the price of raw materials; (2) The cardiovascular drug Q1 with Angong Niuhuang Pill as the core achieved a single quarter revenue of about 70 million yuan (YoY + 142%), and the single quarter turnover has reached 69% of the annual turnover in 2021. The volume is significant, and the gross profit margin has also increased by 4 percentage points year-on-year to 47.5%. We are optimistic about the company’s determination to expand and strengthen Angong Niuhuang Pill, and it is expected that Angong Niuhuang Pill will become another driving force for the company’s performance in the future; (3) The daily use and cosmetics business Q1 achieved a revenue of 190 million yuan, yoy-13%, and the gross profit margin increased by 6.7 percentage points year-on-year to 69.1%. The changes in revenue and gross profit margin are estimated to be related to the adjustment of product structure; (4) The circulation sector achieved a revenue of 940 million yuan, yoy + 17.7%, and the gross profit margin increased by 3.1 percentage points year-on-year to 10.6%.
The gross profit increased and the expense rate decreased: the company’s comprehensive gross profit margin in Q1 was 49.1%, an increase of 0.8 percentage points year-on-year, which is related to the rise of the gross profit margin of Angong Niuhuang Pill and the circulation sector. During the period, the expense rate was 10.0%, a year-on-year decrease of 2.3 percentage points, of which the sales expense rate decreased by 2 percentage points to 7% year-on-year, which is estimated to be mainly due to the saving of sales expenses by online direct business.
Profit forecast: we expect the company to achieve net profits of 2.95 billion yuan and 3.6 billion yuan respectively in 2022 and 2023, with yoy + 21.2% and + 22.2% respectively, EPS of 4.9 yuan / 6.0 yuan respectively, corresponding to 59 times / 48 times of PE. The company’s performance has maintained rapid growth for a long time, and the Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) brand also has great value. After the recent stock price adjustment, the current valuation has fallen into the investable range and has been raised to the “buy” rating.
Risk enhancement: the impact of the epidemic exceeded expectations, the price rise of raw materials exceeded expectations, and the quantity of new products was less than expected
