\u3000\u3 China Vanke Co.Ltd(000002) 332 Zhejiang Xianju Pharmaceutical Co.Ltd(002332) )
Event: the company released the first quarterly report of 2022, with Q1 operating revenue of 1.049 billion yuan, a year-on-year increase of 4.76%; The net profit attributable to the parent company was 128 million yuan, a year-on-year increase of 15.47%; Deduct non net profit of 126 million yuan, with a year-on-year increase of 16.25%.
The gross profit margin was significantly improved month on month, and the advantageous anesthetic and respiratory preparations increased rapidly. We expect that after excluding Haisheng, the growth rate of revenue will be close to the level of the whole year of 2021, the growth rate of net profit attributable to the parent company will exceed 20%, and the performance will maintain a rapid growth, which is mainly driven by the rapid growth of anesthetic muscle pine (rocuronium bromide) and respiratory preparations (mometasone furoate nasal spray). The gross profit margin was 58.03%, with a year-on-year increase of 1.12pp and a month on month increase of 2.68pp. The month on month improvement was obvious. We expect that it is mainly due to the smooth downward transmission of the price rise of raw materials and the rise of product prices. The company continues to plough deeply in the steroid hormone track, and the API + preparation is integrated. There are 22 consistency evaluation varieties of the preparation end company, 9 of which have been declared and 5 have been evaluated; There are 18 new imitation varieties, and 5 have been declared. The development of API customers has been steadily promoted, and the industrial chain advantages in the international market have been gradually brought into play; Form synergy with newchem in some markets. Under the deepening layout of API and preparation, it is expected to continue the steady growth trend in the next few years.
Expense rate: the gross profit margin increased 2PP month on month, the expense rate remained stable during the period, and the R & D investment continued to grow. Gross profit margin: the gross profit margin of 2022q1 is 58.03%, which is nearly 3PP higher than that of 21q4. We expect that the product price will rise mainly due to the rise of upstream raw and auxiliary materials. Expense ratio: in 2022q1, the sales expense ratio is 30.16% (year-on-year + 2.87pp, the same below), the management expense ratio is 6.90% (- 2.10pp), the financial expense ratio is 0.56% (- 0.23pp), and the total expense ratio is 37.62% (+ 0.54pp), which remains basically stable. R & D Investment: in 2022q1, the R & D expenditure is 57.37 million yuan (+ 10.65%), accounting for 5.47% (+ 0.29pp) of revenue. R & D investment continues to grow and the proportion remains stable.
Focus on the main business of steroids, complete the transfer of 61.2% equity of Haisheng pharmaceutical, and further optimize the industrial structure. The company announced on January 18, 2022 that it planned to publicly list and transfer 61.2% equity of its holding subsidiary Haisheng pharmaceutical; On April 19, it was announced that the equity transaction contract was signed with the intended transferee, Mr. Chen Jigu, to complete the equity transfer. Haisheng pharmaceutical's main business is vitamin D3 API manufacturing, food additive manufacturing, etc., which has no synergistic effect with the company's steroid hormone industry chain. Its net profit from January to November 2021 was -6.5752 million yuan and that in 2020 was 428942 million yuan, which disturbed the company's apparent performance. We believe that this equity transfer is in line with the company's development strategy of focusing on the steroid hormone industry chain, will further optimize the business structure, and the profitability of the company's API business segment will be more stable.
As a leading steroid hormone enterprise with global API + Preparation integration and complete categories, it continues to upgrade and develop steadily. The four major specialty preparations of the company's core Department of Gynecology, anesthesia muscle relaxation, respiratory department and dermatology have maintained rapid growth in the past few years. Several subsequent products with excellent competition pattern are expected to be listed one after another, driving the accelerated growth of China's preparation business. With the construction, relocation and certification of new plants in 20172019, hormone API business has gradually ushered in a large number of new and old varieties with high gross profit. It is expected to continue to grow rapidly in the next 2-3 years and bring performance contribution. In the long run, the company's respiratory preparations with high barriers and the continuous upgrading of high-end hormone API and preparation products are worth looking forward to.
Profit forecast and investment suggestions: we expect the company's revenue from 2022 to 2024 to be 5.007, 5.897 and 6.879 billion yuan, with a year-on-year increase of 15.5%, 17.8% and 16.7%; The net profit attributable to the parent company was 761 million yuan, 940 million yuan and 1163 million yuan, with a year-on-year increase of 23.5%, 23.5% and 23.8%. The current share price corresponds to 11 / 9 / 7 times of PE from 2022 to 2024. Considering that the company is the leader in the integration of steroid hormone high-quality track APIs and preparations, and the variety layout of high barrier APIs and preparations continues to deepen, it is expected to maintain steady growth for a long time and maintain the "buy" rating.
Risk warning events: product price reduction risk, exchange rate fluctuation risk, overseas acquisition and integration failure risk, public information lag or untimely update risk.
