\u3000\u30 China Baoan Group Co.Ltd(000009) 63 Huadong Medicine Co.Ltd(000963) )
Events
On April 27, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue was 34.56 billion yuan (+ 2.6%), the net profit attributable to the parent company was 2.3 billion yuan (- 18%), and the net profit not attributable to the parent company was 2.19 billion yuan (- 10%); Excluding the holding subsidiary East China Ningbo, the operating income increased by 3.1% year-on-year, and the net profit deducted from non parent company decreased by 7.64% year-on-year. The net profit in the quarter was attributable to q2.24 billion yuan (+ 2.74 billion yuan) and the net profit in the quarter was attributable to q2.46 billion yuan (- 2.75 billion yuan).
In 2022q1, the company realized revenue of 8.93 billion yuan (+ 0.4%), net profit attributable to parent company of 704 million yuan (- 7.1%), net profit attributable to non parent company of 699 million yuan (+ 0.4%) deducted. Excluding the holding subsidiary East China Ningbo, calculated according to the same standard in the statement of last year, the operating revenue increased by 3.79% year-on-year and net profit attributable to non parent company increased by 1.74% year-on-year.
Comments
The industrial sector gradually stabilized and the performance of industrial microorganisms was brilliant. In 2021, the industrial sector achieved a revenue of 10.109 billion yuan (- 8.4%) and a net profit of 2.092 billion yuan (- 10%), of which the industrial microbiology sector achieved a total revenue of 418 million yuan (+ 69.2%). In the first quarter of 2022, the industrial revenue reached 2.791 billion yuan, a year-on-year decrease of 9.7% and a month on month increase of 19%; The non net profit deducted was 580 million yuan, a year-on-year decrease of 13.41%, a significant increase of 48.08% month on month, and the income of industrial microorganisms increased by 99% year-on-year. The impact of price reduction factors of some products is gradually digested and is expected to recover and continue to grow in the future; At the same time, liraglutide is expected to achieve commercial sales in 22 years, driving the continuous improvement of performance.
The performance of girl needle is in line with expectations, and the joint volume at home and abroad drives the growth of the sector. The company's medical beauty business focuses on the latest products and instruments in the field of facial micro plastic surgery and skin management. The sales performance of the heavy "girl needle" is good after it is approved for listing. In addition, the company's photoelectric medical instrument "Kuxue" was officially listed in Shanghai in January this year, which is expected to contribute a good amount of revenue this year. In the new regulatory and marketing environment, the company's medical beauty product market continues to develop, and the growth space will be further released.
Profit adjustment and investment suggestions
We are optimistic about the company's pharmaceutical industry. Affected by centralized mining, we lowered 22-23 profit expectations by 17% and 22%; It is estimated that the net profit attributable to the parent company will be 2.91 billion yuan, 3.31 billion yuan and 3.82 billion yuan in 22-24 years, with a year-on-year increase of 26%, 14% and 16%. Maintain the "buy" rating.
Risk tips
There is uncertainty in the development of the epidemic; Product R & D progress is less than expected; The risk of declining net interest rate due to intensified competition in the product market; Market promotion is less than expected risk, etc.
