\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 285 Henan Lingrui Pharmaceutical Co.Ltd(600285) )
Event: Henan Lingrui Pharmaceutical Co.Ltd(600285) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 2.694 billion yuan (+ 15.52%), a net profit attributable to the parent company of 362 million yuan (+ 11.08%), and a net profit attributable to the parent company of 355 million yuan (+ 18.46%); In 2022q1, the company realized an operating revenue of 682 million yuan (+ 15.73%), a net profit attributable to the parent company of 131 million yuan (+ 35.41%), and a net profit attributable to the parent company of 105 million yuan (+ 15.99%).
Comments:
From 2021 to 2022q1, the company's performance grew steadily. In 2021, the company achieved revenue of 2.694 billion yuan (+ 15.52%) and net profit attributable to parent company of 362 million yuan (+ 11.08%), of which Q1-Q4 achieved revenue of 589 / 7.66 / 6.98 / 640 million yuan respectively, with a year-on-year increase of 20.01% / 12.09% / 21.34% / 10.01%, and achieved double-digit growth in revenue for several consecutive quarters; In 2022q1, the company achieved a revenue of 682 million yuan (+ 15.73%), a net profit attributable to the parent company of 131 million yuan (+ 35.41%), and a net profit margin of 19.16% (a year-on-year increase of 2.77 PCT), which was due to the increase of sales revenue, the decrease of sales expense ratio (a year-on-year decrease of 2.64 PCT) and the increase of government subsidies (263352 million yuan).
The paste business grew steadily, and the tablet business represented by Danlu Tongdu tablets grew rapidly. In 2021, the company promoted channel sinking through fine management, deepened cooperation with key customers and strategic chain customers, successfully implemented the high-quality development strategy of general medicine, continued to promote the selection of high-quality agents, and newly developed more than 7800 hospitals at all levels throughout the year. In terms of products in 2021: 1) plasters: the revenue was 1.624 billion yuan (+ 14.61%), accounting for 60.28% of the revenue. The sales of Tongluo Qutong ointment and Zhuanggu musk analgesic ointment increased by 11.04% / 8.51% year-on-year respectively; 2) Capsules: the revenue was 666 million yuan (+ 15.83%), and the sales volume of Peiyuan Tongnao capsule increased by 13.21% year-on-year; 3) Tablets: the revenue was 148 million yuan (+ 37.04%), and the sales volume of Danlu Tongdu tablets increased by 20.07% year-on-year; 4) Ointment: revenue of 121 million yuan (- 10.37%) in 2021.
The sales volume of "two tigers" series is leading the market, strengthen marketing management and promote brand construction. According to the company's 2021 annual report, orthopaedic "two tigers" series products mainly include bone strengthening musk analgesic ointment, dampness relieving ointment, joint analgesic ointment, musk bone strengthening ointment, etc., and the sales volume of products is in a leading position in the market; In terms of medication for cardiovascular and cerebrovascular diseases, Chinese patent medicines such as Peiyuan Tongnao capsule and Shenqi Jiangtang Capsule have the unique advantages of syndrome differentiation and treatment and giving consideration to both symptoms and specimens; In terms of anesthesiology department, the company is the only company engaged in the production of skeleton fentanyl transdermal patch in China, and the market competition pattern is good. In 2022, the company will reasonably increase brand investment, upgrade the packaging of "two tigers" series products, timely enrich the sub brand product pipeline, strengthen the sales efficiency management of professionals, accelerate the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated operation, accelerate the layout of grass-roots medical sales channels, and promote the stable growth of business performance.
Profit forecast: the company is China's leading traditional Chinese medicine enterprise of plaster, with many advantageous varieties and brand popularity. With the promotion of the company's marketing reform, the core products have increased steadily, the two tiger series products have ushered in a high-quality development stage, and the revenue is expected to grow rapidly. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 3.058/34.84/3.974 billion respectively, with a year-on-year increase of 13.5% / 14.0% / 14.0%, and the net profit attributable to the parent company will be RMB 4.33/5.00/580 billion, with a year-on-year increase of 19.9% / 15.3% / 16.1%, corresponding to the P / E ratio of 13.96/12.10/10.42 times from 2022 to 2024.
Risk factors: the impact of the epidemic, the risk of intensified industry competition, the risk of price fluctuation of raw materials, and the risk of product sales falling short of expectations.
