\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 161 Beijing Tiantan Biological Products Corporation Limited(600161) )
Event: on April 25, 2022, the company released 2021 annual report and 2022 first quarterly report. In 2021, the total operating revenue was 4.112 billion yuan, a year-on-year increase of 19.35%; The net profit attributable to the parent company was 760 million yuan, a year-on-year increase of 18.94%; Net profit deducted from non parent company was 756 million yuan, with a year-on-year increase of 21.12%. In 2022q1, the total operating revenue was 705 million yuan, a year-on-year decrease of 16.80%; The net profit attributable to the parent company was 125 million yuan, a year-on-year decrease of 17.50%; Net profit deducted from non parent company was 116 million yuan, a year-on-year decrease of 22.83%
The performance has increased steadily in 21 years, and Q1 performance is under pressure under the factors of epidemic and inventory. In 2021, the company achieved revenue of 4.112 billion yuan (+ 19.35%); 760 million yuan (+ 18.94%). Quarterly, 21q4 achieved a revenue of 1.291 billion yuan (+ 59.39%) and a parent of 206 million yuan (+ 44.72%), which is related to the increase in sales of blood products, the capital increase to Chengdu Rongsheng and the low base of 2020q4. 22q1 achieved a revenue of 705 million yuan (- 16.80%) and 125 million yuan (- 17.50%) attributable to the parent company. Due to covid-19 disturbance and terminal inventory digestion, the company’s sales volume fell temporarily. Plasma stations and plasma collection volume: in 2021, 58 plasma stations collected 1809 tons of plasma, with a growth rate of 6%. The company has 23 new pulp stations and plans to build three blood production bases in Yong’an, Yunnan and Lanzhou, with a design capacity of 1200 tons. Batch issuance: 93 batches (+ 3.33%) of 22q1 main varieties of albumin and 64 batches (+ 10%) of jingc
The cost rate remained stable, and the terminal promotion achieved remarkable results. In 2021, the sales cost was 271 million yuan (+ 8.68%), and the sales rate was 6.59% (- 0.65pp). The company continued to carry out academic promotion, covering 31881 terminals (+ 22.68%), and strengthened the promotion of benchmark hospitals. The management fee was 329 million yuan (+ 28.09%), and the management rate was 7.99% (+ 0.55pp). Under the low base of social security relief last year, the management construction was further strengthened. The R & D cost was 133 million yuan (+ 11.12%), and the R & D rate was 3.24% (- 0.24pp). Many clinical studies were progressing smoothly. Financial expenses were – 64 million yuan (- 111.68%), and deposit interest income increased.
Steady progress has been made in the research projects and the leading position has been consolidated. The two core varieties Chengdu Rongsheng recombinant human coagulation factor VIII for injection and Chengdu Rongsheng intravenous human immunoglobulin (pH4, 10%) have obtained the phase III summary report. The intravenous injection of covid-19 human immunoglobulin (pH4) made from Wuhan blood was the first approved clinical in the world and carried out phase II clinical in the UAE, the subcutaneous injection of human immunoglobulin in Chengdu Rongsheng carried out phase III clinical, the recombinant human coagulation factor VII a carried out phase I clinical, and the human fibrinogen made from Shanghai blood was approved clinical. The company continues to promote several projects under research, and the future growth can be expected.
Profit forecast and investment suggestions: under the marginal improvement of local epidemic, we expect the operating revenue of the company to be RMB 4.913 billion, 5.899 billion and 7.114 billion from 2022 to 2024, with a year-on-year increase of 19.48%, 20.07% and 20.59%; The net profit attributable to the parent company was 905 million yuan, 1089 million yuan and 1306 million yuan respectively, with a year-on-year increase of 19.37%, 20.69% and 19.32%. The company takes the lead in the industry in pulp production and the number of pulp stations. In the future, with the improvement of efficiency and the release of production capacity, the profit per ton of pulp is expected to continue to increase. In addition, the products under research such as chromatography static C and restructuring eight factors provide long-term space and are rated as “overweight”.
Risk tip: the risk of integration falling short of expectations, the risk of price fluctuation of blood products, and the risk of decline in gross profit margin of blood products business.
