\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 566 Hubei Jumpcan Pharmaceutical Co.Ltd(600566) )
Event:
On April 22, the company released the first quarterly report of 2022. In the first quarter, the operating revenue was 2.174 billion yuan, a year-on-year increase of 13.34%; The net profit attributable to the parent company was 581 million yuan, a year-on-year increase of 32.36%; The net profit attributable to the parent company after non deduction was 503 million yuan, with a year-on-year increase of 22.9%. The company’s operating revenue and net profit in the first quarter were outstanding.
Comments:
Gradually optimize the operating expenses and increase the sales performance
In the first quarter of 2022, the company achieved an operating revenue of RMB 2.174 billion, reaching a new high in the same period, mainly thanks to: ① Pudilan Xiaoyan oral liquid, the core product of heat clearing and detoxification products, was recommended as a preventive drug by the consensus of experts on the prevention and treatment of traditional Chinese medicine for the infection of novel coronavirus Omicron mutant strain in 2022, and promoted the product sales to a certain extent with the repeated epidemic. ② Pediatric products: Xiaoer douqiao Qingre Granule has the highest market share in the subdivided field. After optimizing the taste, the new dosage form of Xiaoer douqiao Qingre Granule was put on the market, which further expanded the applicable population and improved the compliance of patients. In the first quarter, the company’s sales expense rate was 48.58%, a year-on-year decrease of 1.87 percentage points, and the management expense rate was 3.59%, a year-on-year decrease of 0.17 percentage points; The R & D expense ratio was 4.34%, a year-on-year decrease of 0.24 percentage points. The company further optimized the sales, management and R & D expenses, reasonably controlled the company’s operating costs, and realized an operating cash flow of 1.006 billion yuan, a year-on-year increase of 38.11%, due to the increase of sales return. It proves that the company has made efforts in the retail channel, established a professional operation team and achieved initial results.
R & D continues to make efforts, and the production line is gradually enriched
In the first quarter of 2022, the company’s R & D expenditure was 944305 million yuan, a year-on-year increase of 20.24%. The company’s R & D investment promoted the orderly promotion of products under research. At present, the company’s drugs have entered the consistency evaluation research stage, including 5 projects, 8 pre be or be projects, 2 phase II clinical projects, 4 phase III clinical projects, and 9 production applications. The concentrated oral solution of magnesium sodium potassium sulfate, a digestive product, has obtained the drug registration certificate in February, further enriching the product line.
Growth hormone is progressing smoothly and will continue to improve in the future
The subsidiary product Etan growth hormone clinical trial phase III was successfully incorporated. The long-acting product uses Fc fusion protein technology, has good compliance and has a good competition pattern in the future. We believe that after the product is listed, it is expected to achieve rapid growth in this field and drive the company’s performance to continue to improve.
Profit forecast and investment rating
We estimate that the company’s operating revenue from 2022 to 2024 will be RMB 8.566 billion, RMB 9.494 billion and RMB 10.453 billion respectively, and the net profit attributable to the parent company will be RMB 2.031 billion, RMB 2.243 billion and RMB 2.445 billion respectively, maintaining the “buy” rating.
Risk tips: ① product sales promotion is not as expected; ② Uncertainty risk of growth hormone product R & D and sales; ③ Risk of price fluctuation of core drugs.
