\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 015 Qingdao Baheal Medical Inc(301015) )
Event:
On April 26, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 7.052 billion yuan, a year-on-year increase of 19.94%; If the two vote system business is restored, the company achieved an operating revenue of 7.787 billion yuan, a year-on-year increase of 27.55%, and a net profit attributable to the parent company of 423 million yuan, a year-on-year increase of 55.04%. In the first quarter of 2022, the company achieved an operating revenue of 1.86 billion yuan, a year-on-year increase of 14.43%; The net profit attributable to the parent company was 88 million yuan, a year-on-year increase of 2.79%; The net profit deducted from non parent company was 95 million yuan, with a year-on-year increase of 14.32%.
Comments:
The performance growth is in line with expectations, and the brand operation business continues to make great efforts. In 2021, the company’s businesses continue to grow steadily. Among them, the core business brand operation achieved an operating revenue of 2.905 billion yuan, a year-on-year increase of 34.11%, accounting for 41.2% of the total operating revenue. If the two vote system business is restored, the brand operation achieved an operating revenue of 3.641 billion yuan, a year-on-year increase of 52.21%, and achieved a gross profit of 1.402 billion yuan, accounting for 79.16%, It is the main profit source of the company; The wholesale distribution business realized an operating revenue of 3.706 billion yuan, a year-on-year increase of 9.94%; Retail business achieved an operating revenue of 419 million yuan, a year-on-year increase of 27.93%.
The brand matrix expanded rapidly and gradually moved towards ecological big pharma
In 2021, the company added hisumi of Pfizer pharmaceutical, shigatan, Weixikang, betanli of anstelai, ambomey of CSL Behring, Xeloda and trokai of Roche pharmaceutical; In 2022, Shanghai Yizhong Pharmaceutical Co.Ltd(688091) the “paclitaxel polymer micelles for injection” was added, forming a multi brand matrix of OTC, prescription drugs such as great health and Otx, and specific drugs such as cancer, highlighting its core competitiveness. In 2021, the major brands of the company maintained steady growth. Among them, the core brand Diqiao series achieved an operating revenue of 1.378 billion yuan, a year-on-year increase of 16.41%. After restoring the two ticket system business, the operating revenue was 1.448 billion yuan, a year-on-year increase of 16.86%; The core brand of mite series achieved an operating revenue of 310 million yuan, a year-on-year increase of 12.02%. After restoring the two vote system business, it achieved an operating revenue of 419 million yuan, a year-on-year increase of 27.74%; The newly added operating brand Hailu series achieved an operating revenue of 298 million, and other brands also achieved steady growth.
At the same time, based on the commercialization platform, guided by optimizing the medical scene, the company promotes sustainable development through strategic upgrading, innovates and incubates Baiyang Zhixin, Huake pioneer and other enterprises, builds industrial clusters in various forms, and gradually moves towards ecological big pharma.
Profit forecast and rating
The company continues to accelerate the expansion of brand matrix, and its performance is expected to maintain steady growth. According to the company’s annual report in 2021 and the first quarterly report in 2022, the net profit forecast for 20222023 is lowered from 534 / 657 million yuan to 521 / 634 million yuan, and the net profit forecast for 2024 is 759 million yuan, maintaining the “buy” rating.
Risk warning: concentration risk of brand operation business, drug quality risk, policy risk and intensified market competition risk
