Changchun High And New Technology Industries (Group) Inc(000661) performance continues to grow at a high speed, and R & D progress continues to advance

\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 61 Changchun High And New Technology Industries (Group) Inc(000661) )

Performance review

On April 27, the company released its first quarter report, realizing an operating revenue of 2.975 billion yuan, a year-on-year increase of 30.4%; The net profit attributable to the parent company was 1.138 billion yuan, a year-on-year increase of 30.16%; The net profit deducted from non parent company was 1.12 billion yuan, with a year-on-year increase of 28.7%.

Business analysis

Kinsey pharmaceutical's increased revenue has driven the group's rapid growth. In Q1 2022, kinsay pharmaceutical achieved a revenue of 2.648 billion yuan, a year-on-year increase of 43.69%; The net profit was 1.205 billion yuan, a year-on-year increase of 1.205%. Kinsay pharmaceutical overcame the impact of the epidemic, dynamically optimized its sales strategy, continued to make breakthroughs in the expansion of new indications, and driven the sustained and rapid growth of the company's business performance.

R & D investment has been further increased, and the long-term growth momentum is abundant. In the first quarter, the company's R & D investment increased by 71.9%, and the R & D expenses increased rapidly, mainly due to the increase of R & D investment of kinsay pharmaceutical. The company actively promoted innovative R & D projects: the core subsidiary kinsay pharmaceutical growth hormone products increased, and three indications were added to each product specification; The clinical trial of leuprorelin injection emulsion drug of kinsay pharmaceutical was approved; The subsidiary Changchun Bcht Biotechnology Co(688276) live attenuated herpes zoster vaccine obtained the marketing license and accepted the application; The relevant electronic pen supporting the long-acting growth hormone cartridge has obtained the registration certificate of relevant medical devices.

The indications of water acupuncture continue to improve, and the population of potentially applicable patients continues to expand. In the first quarter, the company's recombinant human growth hormone injection 30iu added the indication of children's dwarfism caused by SGA. In addition, several product specifications of the company's growth hormone products for the treatment of idiopathic short stature (ISS), Prader Willi syndrome (PWS) and other indications have also been included in the priority review by the State Food and drug administration. In the future, the indications of the company's products are expected to continue to expand, cover more patient populations, and the corresponding market space is expected to continue to expand.

Profit adjustment and investment suggestions

We maintain the profit expectation from 2022 to 2024. It is expected that the company will realize the net profit attributable to the parent company of 52.41 (+ 39%), 68.27 (+ 30%) and 8.392 billion yuan (+ 23%) respectively, corresponding to the current EPS of 12.95 yuan, 16.87 yuan and 20.74 yuan respectively, and the corresponding P / E is 11.4, 8.7 and 7.1 times respectively.? Maintain the "buy" rating.

Risk tips

Risk of medical insurance price reduction and fee control; Increased risk of growth hormone competition; Vaccine sales were less than expected; The R & D progress did not meet expectations, etc.

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