\u3000\u3 Shengda Resources Co.Ltd(000603) 590 Beijing Konruns Pharmaceutical Co.Ltd(603590) )
Event: the company released its annual report for 2021, and achieved a revenue of 810 million yuan during the period, with a year-on-year increase of 0.14%; The net profit attributable to the parent company was 148 million yuan, a year-on-year decrease of 19.29%; Deduct the net profit not attributable to the parent company of 114 million yuan, a year-on-year decrease of 24.03%; The basic earnings per share is 0.94 yuan, and it is proposed to distribute cash dividends of 3.00 yuan (including tax) to all shareholders for every 10 shares. Meanwhile, the 22q1 performance report announced that the revenue was 156 million yuan, a year-on-year decrease of 25.99%. The net profit attributable to the parent company was 46.437 million yuan, a year-on-year decrease of 27.89%.
Comments:
The sales volume of suling’s two main products basically rebounded. The company’s revenue was 810 million yuan, basically the same as that in 2020. Under the impact of the epidemic, the two main varieties of suling and migaixi were basically stable. The revenue of the main product “suling” was 560 million yuan, a year-on-year decrease of 28.8%, which was mainly affected by the implementation of the new medical insurance price in March last year (price reduction of 33%), and the sales volume in 2021 increased by about 9.3% year-on-year, but it has not yet recovered to the level in 2019. Last year, the revenue of the newly consolidated secret interest coverage business was 230 million yuan, exceeding the performance commitment in 2021, providing strong support for stabilizing the basic market of the company; There are two dosage forms of migaixi: injection and nasal spray. We are more optimistic about the growth of migaixi nasal spray. It does not rely on hospital injection and is convenient for medication. We are confident to complete the performance commitment of 22-23 years. The revenue and net profit of 22q1 continued to decline. First, the epidemic situation across the country this year was more severe than that of last year, and suling had implemented the new medical insurance price (33% lower than that of 21q1), which affected the revenue less than that of the same period last year; Second, the equity of secret interest coverage business decreased to 73.7% (100% in the same period last year), affecting the growth rate of profit side.
Sustained high investment in R & D and increased innovation. Last year, the R & D investment was 165 million yuan, a significant increase of 77.09% year-on-year in 2020, accounting for 20.36% of the operating revenue, of which 102 million yuan was expensed, and the R & D investment continued to be high. Kc1036 is an Axl / VEGFR2 / FLT3 multi-target class 1 innovative drug independently developed by the company. The results of phase I clinical trial show that kc1036 single drug has good safety and tolerance, and shows prominent antitumor activity in patients with advanced solid tumors. It has entered phase Ib / II clinical research in February this year; In addition, kc1072 developed in cooperation with Wuxi Apptec Co.Ltd(603259) is an HPK1 inhibitor, which is under normal promotion. The innovative pipeline BD has achieved outstanding results. The acquired Jincao tablet is a rare type 1.2 innovative variety of traditional Chinese medicine, and has completed clinical phase II; Kc-b173 is a recombinant human factor seven (FVIIa) with global highlights introduced by the company from German biotechnology enterprises. The project covers the development and commercialization rights of global intellectual property rights.
Profit forecast: we revise the profit forecast and predict that from 2022 to 2024, the company’s revenue will be 860 / 1077 / 1215 million yuan respectively, with a year-on-year increase of 6.2% / 17.2% / 20.6% respectively, and the net profit attributable to the parent company will be 157 / 185 / 222 million yuan respectively, with a year-on-year increase of 6.2% / 17.8% / 19.9% respectively. According to the closing price (24.00 yuan), the corresponding PE (2022e) is about 24 times. The valuation is reasonably low and the “buy” rating is maintained.
Risk warning: the price of drugs is lower than expected; Product quality risk; The R & D progress is less than expected; Systemic risk.
