\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 276 Jiangsu Hengrui Medicine Co.Ltd(600276) )
2021 annual report and 2022 first quarterly report:
In 2021, the company achieved an operating revenue of 25905526400 yuan, a year-on-year decrease of 6.59%; The total profit was 44663088 million yuan, a year-on-year decrease of 35.23%; The net profit attributable to the shareholders of the listed company was 4530217600 yuan, a year-on-year decrease of 28.41%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 42006992, a year-on-year decrease of 29.53%; The basic earnings per share was 0.71 yuan, with a decrease of 28.28%. In 2022q1, the company realized an operating revenue of 54785391 million yuan, a year-on-year decrease of 20.93%; The net profit attributable to shareholders of listed companies was 1236949200 yuan, a year-on-year decrease of 17.35%.
Many factors resonate, and the annual performance is under pressure. In 2021, the company’s anti-tumor business achieved an operating revenue of 130715552 million yuan, a year-on-year decrease of 14.39%; The gross profit margin was 90.68%, down 2.67 percentage points from the same period last year. The operating income of anesthesia business was 4916426300 yuan, a year-on-year increase of 7.09%; The gross profit margin was 89.08%, down 1.26 percentage points from the same period last year. The operating income of contrast agent business was 32695864 million yuan, a year-on-year decrease of 9.93%; The gross profit margin was 72.24%, down 0.17 percentage points from the same period last year. Affected by the acceleration of China’s centralized procurement and medical insurance negotiations, the prices of the company’s core products such as carrelizumab fell sharply, superimposed with the rise of raw materials and other costs, and the continuous increase of the company’s R & D expenses, which affected the company’s annual performance.
The differentiation strategy supported by R & D is expected to offset the negative impact of centralized purchase. In 2021, the company’s R & D expenses reached 5943306 million yuan, with a year-on-year increase of 19.13%, accounting for 22.94% of the company’s operating revenue. At present, it ranks seventh in the published annual report of the industry (excluding unprofitable companies). In 2021, the company’s three innovative products, haitripopa ethanolamine tablets, proline hengglijing tablets and darcili hydroxyethanesulfonate tablets, were approved for listing. At present, the company is in the stage of transformation and upgrading, and the R & D layout is constantly optimized and enriched. With the continuous listing of the company’s tumor and non-tumor innovative products, it is expected to offset the negative impact of centralized procurement and other policies in the future, so as to support the long-term development of the company’s performance.
Reduce costs and improve efficiency, and reform the sales network. Since July 2021, the company has reformed its sales network in order to streamline and improve efficiency. In terms of streamlining, the company’s sales staff was optimized from 17138 to 13208, and the sales team was integrated. In 2021 and 2022q1, the company’s sales expenses decreased by 4.27% and 24.53% year-on-year respectively; In terms of efficiency improvement, the company shifted its focus to the promotion of innovative drugs, optimized the sales team and product promotion, optimized the assessment of the sales team, and improved the per capita yield of the sales team. The company has reformed its sales system to reduce costs and improve its sales efficiency. In the long run, the cost control ability is expected to continue to improve.
Investment suggestion: we expect the diluted EPS of the company from 2022 to 2024 to be 0.69 yuan, 0.82 yuan and 0.91 yuan respectively, and the corresponding dynamic P / E ratios are 42.93 times, 36.07 times and 32.62 times respectively Jiangsu Hengrui Medicine Co.Ltd(600276) as the leader of Chinese innovative drug enterprises, the R & D layout is reasonable and comprehensive, and the product pipeline is expected to continue to enrich, maintaining the buy rating.
Risk warning: policy risk, R & D risk and promotion of innovative drugs are lower than expected
