\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 57 Zhejiang Wolwo Bio-Pharmaceutical Co.Ltd(300357) )
Event: the company released the annual report of 21 years and the quarterly report of 22 years. In 21 years, the company achieved revenue of 808 million yuan (+ 26.95%), net profit attributable to the parent company of 338 million yuan (+ 21.38%), and net profit attributable to the parent company of 316 million yuan (+ 20.78%) after deduction; In the fourth quarter, the revenue was 188 million yuan (+ 29.50%), the net profit attributable to the parent company was 63 million yuan (+ 28.55%), and the net profit attributable to the parent company after deduction was 57 million yuan (+ 34.23%). The company plans to distribute a cash dividend of 2.01 yuan (including tax) for every 10 shares. 22q1 revenue was 198 million yuan (+ 20.00%), net profit attributable to parent company was 92 million yuan (+ 30.21%), net profit attributable to parent company after deduction was 77 million yuan (+ 27.68%). The performance slightly exceeded expectations.
Q4 income has resumed rapid growth, and the enrollment of new patients is expected to increase steadily. In the fourth quarter, the growth rate of revenue and profit recovered significantly compared with Q2 and Q3, and 22q1 still maintained steady growth, indicating that the company has gradually adapted to the situation of epidemic spread in China, and its operation is gradually on track. The annual sales volume of dust mite drops was 796 million yuan (+ 26.14%), and the sales volume was 9.16 million pieces (+ 27.27%). The growth rate in central and East China was fast, and the average price remained stable. According to the sample hospital model, the annual growth rate of new patients is expected to be about 30%. In the future, with the stable epidemic situation in China, new diseases in key markets such as South China and East China are expected to resume growth, driving the growth of sales of dust mite drops.
The market access of the new Artemisia annua powder drops is progressing smoothly. The annual revenue is 3.6724 million yuan and the sales volume is 16100. At present, the application for children's indications has been accepted, and it is expected to contribute a large increment in the first full sales year in 22 years.
The gross profit margin remained stable, and the net profit margin of 22q1 exceeded expectations. In 21 years, the company's overall gross profit margin was 95.74%, of which Q4 was 95.24% and 22q1 was 95.85%. The gross profit margin of the core product dust mite drops remained stable. On the expense side, the total expense rate during the 21-year period was 49.49% (+ 2.14pct), the sales expense rate decreased slightly year-on-year, and the management and R & D expense rate increased; The total expense ratio of 22q1 is 50.17% (- 3.11pct), of which the sales and management expense ratio decreased by 3.18 and 1.50pct year-on-year, which is expected to be mainly due to 1) the good cost control after the company's operation returns to stable growth; 2) The epidemic situation in Shanghai affected the expenditure of relevant academic activities. The net interest rate for the whole year of 21 was 40.40%, a year-on-year decrease of 2.00pct, and the net interest rate of 22q1 was 45.03%, a year-on-year increase of 3.89pct.
Maintain the "buy" rating. As the leader of desensitization preparation industry in China, with the approval of Artemisia powder drops, the company has formed a product matrix covering the north and South markets; The company continues to help publish heavy clinical data around the country and promote sublingual desensitization preparations into multiple clinical guidelines, which is expected to form a good cycle of academic research driving sales and sales promoting academic research. We are optimistic about the field of desensitization therapy and the long-term development trend of the company. It is estimated that the net profit attributable to the parent company in 22-24 years will be 450 / 591 / 734 million yuan, corresponding to 37 / 28 / 23 times of the current PE, maintaining the "buy" rating.
Risk warning. The sales of dust mite drops were less than expected; The sales of Artemisia pollen drops were lower than expected after listing; Price reduction risk.
