\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 211 Tibet Rhodiola Pharmaceutical Holding Company(600211) )
Key investment points
Event: 1) the company] recently released its 2021 annual report, realizing a revenue of RMB 2.14 billion, a year-on-year increase of + 55.8%, and a net profit attributable to the parent company of RMB 210 million, a year-on-year decrease of – 50%, deducting a net profit not attributable to the parent company of RMB 66.69 million, a year-on-year decrease of – 81.7%.
2) the company released the first quarterly report of 2022, realizing revenue of 660 million yuan, year-on-year + 32.7%, net profit attributable to parent company of 170 million yuan, year-on-year + 11.1%, deducting net profit attributable to non parent company of 180 million yuan, year-on-year + 27.7%.
In 2021, the revenue growth was strong, and the profit side was affected by the impairment of imdo intangible assets. The company’s strong revenue growth in 2021 was mainly driven by the sales revenue of neoactivin. During the reporting period, the sales of neoactivin reached 4.59 million, with a sales revenue of 1.68 billion yuan, an increase of 75.6% over the same period of last year. In 2021, the company made provision for impairment of imdo of USD 71 million (equivalent to RMB 460 million). At present, the book value of imdo intangible assets is about USD 58 million. The provision for asset impairment will help reduce the pressure on the company’s future profit side.
In the first quarter, the growth rate of non net profit deduction was rapid, which was mainly affected by the base effect. In the first quarter of 2022, the company’s performance achieved rapid growth, which is expected to be mainly driven by the large-scale sales of neoactivin. As a genetically engineered drug for the treatment of acute heart failure, neoactivin can quickly improve the symptoms and signs of patients with heart failure. Its medical insurance contract will be renewed in 2021, and its sales volume is expected to maintain strong growth in the future. In the first quarter, the company’s non deduction profit grew rapidly, mainly due to the small profit base in the same period of last year and the non recurring losses caused by the changes in the fair value of financial assets held by the company.
Two products of Ahmet are expected to be sold in recent years. The company invested in Ahmet medical in 2020 and obtained the sales rights of four products, including stent positioning system, fully degradable coronary drug-eluting stent system, fully degradable peripheral vascular drug-eluting stent system and high-pressure balloon dilation catheter. At present, the high-pressure balloon catheter has obtained the device registration certificate and production license, and the exclusive product stent positioning system has obtained the medical device registration certificate. The company has established a device sales team, and it is expected that the above products will be sold in recent years, contributing new performance growth momentum to the company.
Profit forecast and investment suggestions: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 770 million yuan, 1.02 billion yuan and 1.31 billion yuan, and the EPS will be 3.11 yuan, 4.12 yuan and 5.26 yuan respectively, with corresponding valuations of 10 times, 7 times and 6 times respectively. Considering the high clinical value of neoactivin as an anti heart failure drug, maintain the “buy” rating.
Risk warning: the R & D Progress of cardiovascular implant products does not meet expectations, the sales of neoactivin is less than expected, the risk of product R & D failure and the risk of asset price fluctuation
