\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 61 Changchun High And New Technology Industries (Group) Inc(000661) )
Event: in the first quarter of 2022, the company and its subsidiaries operated steadily, and the revenue and net profit of core pharmaceutical enterprises continued to grow. The company achieved an operating revenue of 2.975 billion yuan, a year-on-year increase of 30.40%; The net profit attributable to the shareholders of the listed company was 1.138 billion yuan, a year-on-year increase of 30.16%: 1) the subsidiary kinsay pharmaceutical realized a revenue of 2.648 billion yuan, a year-on-year increase of 43.69%; The net profit was 1.205 billion yuan, a year-on-year increase of 37.31%. 2) The subsidiary Changchun Bcht Biotechnology Co(688276) achieved a revenue of 138 million yuan, a year-on-year decrease of 44.27%; The net profit was 17 million yuan, a year-on-year decrease of 68.76%. 3) The subsidiary Huakang pharmaceutical achieved a revenue of 170 million yuan, a year-on-year increase of 10.23%; The net profit was 09 million yuan, a year-on-year decrease of 21.55%. 4) The subsidiary’s high-tech real estate realized a revenue of 171 million yuan, a year-on-year increase of 503.38%; The net profit was 21 million yuan, a year-on-year increase of 485.24%.
The long-acting growth hormone injection pen was approved, and the indications of short-acting growth hormone were expanded. According to the announcement of the company on April 22, 2022, Kinsey pharmaceutical polyethylene glycol recombinant human growth hormone injection and recombinant human growth hormone injection received the relevant notice of approval of drug supplementary application approved and issued by the State Drug Administration: 1) Kinsey Zeng (polyethylene glycol recombinant human growth hormone injection) injection pen (cartridge packaging form) was approved by the State Drug Administration; 2) Saizeng (recombinant human growth hormone injection) is approved to increase the indication, that is, for children with short stature caused by small for gestational age (SAG) (catch-up growth is not achieved at the age of 2). The injection pen will increase the convenience of using long-acting growth hormone, and the approval of new indications will further expand the product market.
The new transdermal patch for the elderly is about to be approved. On April 12, 2022, kinsay pharmaceutical received a notice from LVYE pharmaceutical that the application for registration and marketing license of overseas produced drugs of lisdimene transdermal patch (twice a week), a product developed by it in the field of central nervous therapy, has been accepted by the drug evaluation center of the State Drug Administration of China for the treatment of mild and moderate symptoms of Alzheimer’s disease. Lismin transdermal patch is introduced by kinsay pharmaceutical from LVYE Pharmaceutical Group. It is a patch product administered twice a week through the skin. It has a lower frequency of use, can improve the medication compliance of patients and reduce the care burden of caregivers. It is the first lismin transdermal patch product approved for listing in China according to the requirements of consistency evaluation and review.
Profit forecast and investment rating: due to the broad growth hormone market, the rapid growth of new diseases and the continuous expansion of new indications, we maintain the expectation of net profit attributable to the parent from 2022 to 2024 of RMB 4.858 billion, 6.239 billion and 7.720 billion. The current market value corresponds to 12, 10 and 8 times of PE from 2022 to 2024, respectively, maintaining the “buy” rating.
Risk warning: the repeated impact of covid-19 epidemic, the risk of product price decline, and the progress of market promotion is not as expected
