\u3000\u3 Shengda Resources Co.Ltd(000603) 590 Beijing Konruns Pharmaceutical Co.Ltd(603590) )
2021 annual report and 2022 first quarter report:
In 2021, the company achieved an operating revenue of 810 million yuan, a year-on-year increase of 0.14%; The total profit was 189 million yuan, a year-on-year decrease of 9.21%; The net profit attributable to the parent company was 148 million yuan, a year-on-year decrease of 19.29%; The net profit attributable to the parent company after deduction was 114 million yuan, a year-on-year decrease of 24.03%; The basic earnings per share was 0.94 yuan, a year-on-year decrease of 18.26%. In 2022, Q1 company realized an operating revenue of 156 million yuan, a year-on-year decrease of 25.99%; The net profit attributable to the parent company was 46 million yuan, a year-on-year decrease of 27.89%; The net profit attributable to the parent company after deducting non profits was 6.8847 million yuan, a year-on-year decrease of 88.74%; The basic earnings per share was 0.30 yuan, a year-on-year decrease of 26.83%.
“Suling” is still affected by the epidemic, and the development of multi product business has achieved initial results. In 2021, the company’s core pillar “suling” business achieved a sales revenue of 564 million yuan, a year-on-year decrease of 28.78%; The gross profit margin was 92.88%, down 1.68 percentage points year-on-year. The main reason for the decline in performance is that “suling” implemented the new medical insurance negotiation price, which led to the decrease in price, and the decline in the number of hospitalized surgeries after the epidemic led to the decrease in sales. The company is expected to expand the scope of application of blood clotting enzyme for pets in the future. The company’s new business “covert interest” achieved a sales revenue of 231 million yuan, becoming a new performance growth point of the company. The company’s multi product introduction strategy has made phased progress, laying a solid foundation for the introduction of subsequent products.
Investment in R & D has increased, and progress has been made in key R & D products. In 2021, the company invested 165 million yuan in R & D, accounting for 20.36% of the operating revenue, with a significant year-on-year increase of 77.09%. On February 23, 2022, the company announced that its key R & D products and class 1 innovative drug kc1036 with independent intellectual property rights had excellent phase I clinical data and entered phase Ib / II clinical practice. Kc1036 is a new multi-target receptor tyrosine kinase inhibitor. The first indication is esophageal cancer and thymic cancer that do not meet the clinical needs. A number of exploratory clinical trials (such as gastric cancer and liver cancer) have been carried out in parallel. Kc1036 has entered the stage of multi-dose expansion. If the follow-up clinical trials are successful, the company is expected to usher in the diversified realization of innovative achievements.
The purchase of innovative Chinese medicine assets and the “global new” layout continued to advance. On April 6, 2022, the company purchased Jincao tablet, a new class 1.2 traditional Chinese medicine under development in China, at the price of 134 million yuan, and the product is about to enter clinical phase III. Jincao tablet is effective in the treatment of chronic pelvic pain caused by pelvic inflammation.
Investment suggestion: regardless of the company’s product introduction, M & A and other factors, we expect the diluted EPS of the company from 2022 to 2024 to be 0.85 yuan, 1.00 yuan and 1.25 yuan respectively, and the corresponding dynamic P / E ratios are 27.21 times, 22.96 times and 18.33 times respectively. The company is the leader in the subdivided field of hemagglutinin. Cutting into the pet medicine sector will further release the company’s competitive advantage in this product. At the same time, the company’s innovative business layout will advance steadily, which will have the opportunity to make continuous contributions to the company’s performance and maintain the buy rating.
Risk tips: epidemic risk, lower than expected risk of R & D, risk of intensified competition
