\u3000\u30 Fawer Automotive Parts Limited Company(000030) 20 Hefei Lifeon Pharmaceutical Co.Ltd(003020) )
Event description
The company released the annual report of 2021 and the quarterly report of 2022q1. In 2021, the company realized an operating revenue of 2.273 billion yuan, a year-on-year increase of 20.01%; The net profit attributable to the parent company was 172 million yuan, a year-on-year increase of 27.47%, and the deduction of non net profit was 152 million yuan, a year-on-year increase of 28.75%. The comprehensive gross profit margin was 39.91%, up 6.45 percentage points year-on-year. ROE13. 21% (diluted), net interest rate of 7.58%, net operating cash flow of 1587027 million yuan, R & D expenses of 65.858 million yuan, a year-on-year increase of 52.06%, and R & D expense rate of 2.90%. The sales expense rate was 26.62%, with a year-on-year increase of 5.83 percentage points, which was related to the significant increase in marketing expenses. Realize eps1 86 yuan, and it is proposed to transfer 7 yuan from 10 yuan to 3 shares. In the first quarter of 2022, the company achieved an operating revenue of 629 million yuan, a year-on-year increase of 14.48%; The net profit attributable to the shareholders of the listed company was 471269 million yuan, a year-on-year increase of 13.04%, realizing EPS (diluted) of 0.51 yuan.
Event comments
The revenue of the industrial sector increased rapidly. The main varieties of Companies in the industrial sector include felodipine sustained-release tablets (II) and doxazosin mesylate sustained-release tablets. In 2021, the sales revenue increased by 37.49% and 52.84% respectively; Yiqihewei capsule and Kunning granule, as the varieties of the national catalogue of essential drugs, the sales revenue increased by 107.04% and 46.68% respectively. The revenue of the whole pharmaceutical industry was 891 million yuan, an increase of 45.68%, and the industrial gross profit margin was 88.44%, an increase of 1.87 percentage points year-on-year. The increase of the proportion of revenue and gross profit margin of the industrial sector drives the increase of the company’s comprehensive gross profit margin. The new products trimetazidine hydrochloride sustained-release tablets (osmotic pump dosage form) and nifedipine controlled-release tablets were successfully approved for listing, strengthening the company’s dominant position in the product pipeline of osmotic pump preparations. The company focuses on the three existing tracks of cardiovascular system, digestive system and external medicine. At the same time, it increases the layout of Ophthalmology and fine anesthesia, and enriches the company’s product pipeline. In the field of fine hemp, the company started with two high-end sustained and controlled-release preparations. The application for registration of methylphenidate hydrochloride API has been approved. The pilot scale-up and process verification of methylphenidate hydrochloride sustained-release tablets have been completed, and the company’s osmotic pump technology has covered the most complex structure and process. Oxycodone hydrochloride sustained-release tablets completed the be study and the registration application was accepted. In the field of Ophthalmology, the company transferred the ownership of 13 eye drops of Anhui shuangke pharmaceutical and became the holder of listing license, so as to enter the field.
Steady business operation. The company continued to strengthen terminal development, adjust the sales structure and expand online business, realizing an increase of 7.91% in operating revenue and 8.02% in the overall gross profit margin of the commercial sector. Among them, the wholesale business income was 1.275 billion yuan, an increase of 7.23%, and the gross profit margin was 6.58%, which was basically stable. The retail business income was 955862 million yuan, an increase of 17.94% and the gross profit margin was 30.30%.
R & D lays the foundation for future development. The company has obtained two EDB scFv fusion protein patents, and has carried out the development of antibody radionuclide conjugates (ARC) and detection reagents based on targeted EDB. The project will promote the company’s strategic layout in the field of high barrier nuclear drugs. The construction of osmotic pump preparation technology platform will promote the substantive progress of the development of improved new drugs. In terms of product planning, we will speed up the development and research of the full specification of oxycodone hydrochloride sustained-release tablets, and focus on the research and development of innovative drugs in the fields of cardiovascular, psychotropic drugs, ophthalmic drugs and antibody radiotherapy drugs, so as to lay a foundation for sustainable development in the future.
Profit forecast, valuation analysis and investment suggestions
We believe that: 1) the company is the leader in the industrialization of osmotic pump controlled-release preparations in China. It has an R & D and production platform with laser perforated osmotic pump controlled-release technology as the core. The corresponding industrialized production capacity ranks in the forefront in China, has cost and efficiency advantages, and has covered the most complex structures and processes; 2) Felodipine sustained-release tablets (II), the representative product of the company, has the highest market share of domestic brands, and is expected to continue to expand its market share in the future with the help of centralized purchase. Nifedipine controlled-release tablets have been approved for listing, and are expected to quickly enter the market with the help of centralized purchase; 3) It is estimated that the company will realize sales revenue of 2.773 billion and 3.458 billion from 2022 to 2024 RMB 3.955 billion, with net profits of 217 million, 313 million and 401 million. Based on the closing price of RMB 34.20 on April 28, the corresponding PE is 14.2, 9.8 and 7.7 times respectively. We continue to be optimistic about the future development of the company and maintain the “overweight-b” rating.
Risk tips
Existing risks include but are not limited to: the risk of centralized mining falling bid or winning the bid but the decline is higher than expected; The risk that the R & D progress is less than expected, the risk of sales stagnation caused by epidemic changes, etc.
