\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 161 Beijing Tiantan Biological Products Corporation Limited(600161) )
Events
On April 25, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 4.112 billion yuan (+ 19.35%), a net profit attributable to the parent company of 760 million yuan (+ 18.94%), and a net profit deducting non attributable to the parent company of 756 million yuan (+ 21.12%). The performance is in line with expectations.
In 2022q1, the company realized an operating revenue of 705 million yuan (- 16.8%), a net profit attributable to the parent company of 125 million yuan (- 17.5%), and a net profit not attributable to the parent company of 116 million yuan (- 22.83%).
Business analysis
Excellent progress has been made in expanding pulp, creating new achievements for the company over the years. In 2021, the company’s revenue and profit of blood products achieved steady growth, with 1809 tons of plasma collected in the whole year, a year-on-year increase of 6%. Since 2021, the company has set up 23 plasma stations in Guizhou, Gansu, Hubei, Hebei, Jilin and other places, including Jiangkou, Yuzhong, Badong, Lincheng and Nong’an. At present, the company has 82 single plasma collection stations (including sub stations), of which 58 are in operation. In the first quarter, affected by the increased difficulty of distribution caused by the epidemic, the reduction of patients’ medical treatment and the consumption of hospital terminal surgery, the company’s product sales decreased temporarily, but the production, pulp collection and other work were still carried out normally and orderly.
The number of terminals continues to take the lead in China, and the core hospitals continue to make breakthroughs. In 2021, the total number of terminals covered by the company reached 31881, with a year-on-year increase of 22.68%, including 12809 pharmacies, with a year-on-year increase of 45.51%; There are 29 benchmark hospitals and 30 key development hospitals.
The sales expense ratio decreased and the inventory turnover efficiency improved. In 2021, the company’s sales expense ratio was 6.59%, a decrease of 0.65% over the same period last year, and the management expense ratio and R & D expense ratio were relatively stable. The company’s inventory turnover days were 365 days, which decreased significantly compared with the same period last year, and the inventory turnover efficiency was improved. Profit adjustment and investment suggestions
Considering the capital expenditure brought about by the company’s new pulp station and the depreciation of fixed assets brought about by the construction of new production capacity, we lowered the profit expectation of 20222023 by 14% and 25% respectively. It is expected that the company will realize the net profit attributable to the parent company of 785 (+ 3%) and 850 (+ 8%) million yuan respectively. Considering the volume of the company’s new pulp station and the continuous enrichment of product line, it is expected to realize the net profit attributable to the parent company of 1.128 billion yuan (+ 33%) in 2024.
From 2022 to 2024, the corresponding EPS of the company is 0.57, 0.62 and 0.82 yuan respectively, and the corresponding current PE is 33, 31 and 23 times respectively. Maintain the “buy” rating.
Risk tips
The expansion of pulp station fails to meet the expectation; Capital expenditure and depreciation and amortization increase due to the new pulp station; Production capacity construction progress is less than expected; Industry policy risk; Repeated outbreaks, etc.
