\u3000\u3 China Vanke Co.Ltd(000002) 020 Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) )
Core view
The performance is in line with expectations and continues to develop steadily. On April 27, the company released the first quarter report of 2022. The operating revenue of the company in the first quarter of 2022 was 871 million yuan, an increase of 1.52% over the same period of last year; The net profit attributable to shareholders of listed companies was 137 million yuan, an increase of 2.43% over the same period of last year, and the net profit deducted from non parent company was 128 million yuan, an increase of 28.91% over the same period of last year. In terms of expenses, the sales expense rate is 25.06% (compared with the same period last year – 2.08 PCT), the management expense rate is 4.57% (compared with the same period last year – 0.55 PCT), the financial expense rate is – 1.62% (compared with the same period last year – 0.80 PCT), and the R & D expense rate is 9.10% (compared with the same period last year – 0.31 PCT). The performance grew steadily and the level of fee control continued to improve, which was in line with expectations as a whole.
R & D promotes continuous optimization of product structure and steady implementation of capacity construction. During the reporting period, the company invested 792247 million yuan in R & D, an increase over the previous period. The company’s product strength in the field of CNS continues to be strengthened, and continues to occupy a leading position in the market with the advantages of rich product pipelines and complete industrial chain. The company has obtained the land use right of state-owned construction land in plot 2021-bh004, Binhai District, Weifang, Shandong Province. On March 28, the board of directors approved the wholly-owned subsidiary Shandong Zhejiang Jingxin Pharmaceutical Co.Ltd(002020) Co., Ltd. to invest in the construction of phase I project of API base, with a total investment estimated at 2 billion yuan, which will help to expand production scale, improve market share and enhance comprehensive competitiveness.
The innovation pipeline will be on the market soon, and the two wheel drive will enhance its competitiveness. On April 23, the company received the acceptance notice of the drug registration and listing license of andacini capsule (i.e. “evt201 capsule”) issued by the State Drug Administration, which is the first listing application of this variety in the world. The company completed the phase III clinical trial of the drug in November 2021, reaching the primary and secondary endpoints, and submitted the listing application to the drug administration in March 2022. The cumulative R & D cost invested in the drug is about 200 million yuan. After the product goes on the market, it will greatly enhance the core competitiveness of the company in the field of mental nerves. The company continues to focus on the two strategic areas of mental nerve and cardio cerebrovascular, adhere to independent R & D and cooperative development of two wheel drive, layout advantageous products, so as to improve the R & D and introduction capacity of innovative drugs, and constantly enrich the product pipeline in core areas. The long-term development is worth looking forward to
Profit forecast and investment suggestions
The latest performance of the company is in line with expectations. We maintain the EPS forecast of RMB 0.80, 0.94 and 1.05 for 22-24 years. According to the comparable company, we give 16 times PE valuation in 2022, corresponding to the target price of RMB 12.80, and maintain the “buy” rating.
Risk tips
The company’s sales do not meet expectations; Uncertainty of volume purchase affecting the company’s performance
