\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 05 Hunan Jiudian Pharmaceutical Co.Ltd(300705) )
Matters:
The company released its 2021 annual report, realizing a revenue of 1.628 billion yuan, a year-on-year increase of 66.40%; The net profit attributable to the parent company was 204 million yuan, a year-on-year increase of 148.29%; The net profit attributable to the parent company after non deduction was 180 million yuan, a year-on-year increase of 167.87%; EPS is 0.87 yuan / share. The company's performance is in line with expectations. The profit distribution plan for 2021 is to allocate 2.61 yuan (including tax) to 4 shares for every 10 shares. At the same time, the first quarterly report of 2022 was released, with a revenue of 449 million yuan, a year-on-year increase of 61.47%; The net profit attributable to the parent company was 55.97 million yuan, a year-on-year increase of 20.49%; The net profit attributable to the parent company after non deduction was 54.48 million yuan, a year-on-year increase of 47.20%.
Ping An View:
The performance in 2021 increased as scheduled, and the revenue growth in 2022q1 was slightly higher than expected. In 2021, the company realized a revenue of 1.628 billion yuan (+ 66%) and a net profit attributable to the parent company of 204 million yuan (+ 148%), maintaining a high-speed growth trend. Profitability continued to grow, with a gross profit margin of 78.50% (+ 3.65 PP) and a net profit margin of 12.55% (+ 4.14 PP). The overall cost side remained stable and decreased, with a total cost rate of 63.77% (-1.05 PP). In 2022q1, the revenue was 449million yuan (+61%), and the growth of the revenue side was slightly higher than expected. We believe that it is mainly because the core product loxoprofen sodium gel paste continued to increase at a high speed.
Loxoprofen sodium gel paste maintained a high prosperity, and other businesses showed a positive trend. In terms of sectors, in 2021, the revenue from pharmaceutical preparations was 1.359 billion yuan (+71%), of which the revenue from the core product loxoprofen sodium gel paste was 849 million yuan (+104%). In addition, pantoprazole sodium enteric coated tablets, loxoprofen sodium tablets, potassium sodium citrate granules, etc. were rapidly scaled up through centralized procurement, and the total revenue from the products other than external preparations was 510million yuan (+34%). The business of raw and auxiliary materials also achieved rapid growth. The revenue of API was 76.94 million yuan (+ 3%), and the revenue of pharmaceutical auxiliary materials was 111 million yuan (+ 66%), mainly due to the adjustment of product structure and the development of new varieties. CXO service has become a new growth point, with an annual revenue of 44.06 million yuan and a gross profit margin of 87%, which is expected to maintain sustained growth.
Positioned as the leader of topical preparations, R & D investment continued to increase. In 2021, the company invested 146 million yuan (+ 79%), accounting for 8.99% of revenue. It is expected to maintain an increase of more than 50% in 2022. Product research and development further focused on the direction of transdermal drug delivery, and 9 transdermal drug delivery directions were approved throughout the year. The next potential heavy variety ketoprofen gel patch is expected to be approved in Q2 2022, and flurbiprofen gel patch and indomethacin gel patch are expected to be approved successively from 2023 to 2024. At that time, the company will form a rich pipeline of external preparations to further consolidate its leading position.
The company is the leader of percutaneous drug delivery in China, with obvious leading edge. Its performance is expected to maintain sustained and rapid growth and maintain the "recommended" rating. In 2021, the company's loxoprofen sodium gel paste was intensively purchased by Guangdong alliance, with mild price reduction and short-term bad luck. It will still maintain an excellent competition pattern in 2-3 years. After centralized mining, the company will accelerate the speed of entering the hospital, realize the exchange of price by quantity, and improve the ceiling through OTC terminal expansion. Taking into account the price reduction of centralized mining and the potential impact of the epidemic, we adjusted the company's net profit forecast from 2022 to 2023 to 274 million and 380 million yuan (the original forecast was 313 million and 484 million yuan), and the net profit in 2024 is expected to be 485 million yuan. The current stock price is only 17 times that of PE in 2022, which has outstanding cost performance and maintains the "recommended" rating.
Risk tips: 1) R & D risk: the company has many pipelines under research, which may lead to R & D failure, especially some improved and innovative products. 2) Product volume is lower than expected: due to the influence of product competition pattern, company marketing ability and other factors, the product volume may be lower than expected. 3) Policy risk: the implementation of centralized purchase policy exceeds the expected risk.
