\u3000\u3 China Vanke Co.Ltd(000002) 603 Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) )
Event: Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 10.117 billion yuan (+ 15.19%), a net profit attributable to the parent company of 1.344 billion yuan (+ 10.27%), and a net profit attributable to the parent company of 1.265 billion yuan (+ 8.60%) after deduction; In 2022q1, the company realized an operating revenue of 2.722 billion yuan (- 25.80%), a net profit attributable to the parent company of 484 million yuan (- 28.22%), and a net profit attributable to the parent company of 490 million yuan (- 26.67%) after deduction.
Comments:
In the 21st year, the revenue maintained growth, and the high base affected the growth rate of 22q1’s apparent performance. The net profit of the parent company decreased significantly (+ 1.305 billion yuan) due to a year-on-year decrease of 1.34 billion yuan (- 1.001 billion yuan) in the fourth quarter of 2021, which was attributable to the net profit of the parent company (- 1.001 billion yuan), and the net profit of the parent company (- 1.001 billion yuan) decreased significantly (- 1.001 billion yuan). In 2022q1, the company realized an operating revenue of 2.722 billion yuan (- 25.80%) and a net profit attributable to the parent company of 484 million yuan (- 28.22%), which was due to the high base (the annual revenue in 2021q1 accounted for 36.26%). Looking forward to the whole year, we judge that due to the obvious aggravation of the epidemic in China since late March, the large-scale volume of Lianhua Qingwen may be reflected in the second quarter, and by the end of the reporting period of 2021, Lianhua Qingwen has been approved to be listed in more than 20 countries and regions, and the internationalization process is promoted, which is expected to promote the large-scale volume.
The company’s medication for cardiovascular and cerebrovascular diseases and cold respiratory diseases has been in a leading position in the industry, and the marketing system has been continuously optimized and upgraded. In terms of business by business in 2021, 1) cardiovascular and cerebrovascular products achieved a revenue of 4.534 billion yuan (+ 31.56%), accounting for 44.82% of the revenue, and the gross profit margin decreased by 4.24 PCT year-on-year. According to the company’s 2021 annual report, the market share of the company’s three patented traditional Chinese medicines “tongshenqi” in the public medical end increased from 13.6% in 2015 to 17.8% in 2021h1 (ranking second / 5 / 9 in the internal use of Chinese patent medicines for cardiovascular diseases respectively), and the 20172021cagr in the retail end reached 10.2%, The market share increased from 5.79% to 6.09%; 2) The revenue of respiratory products was 4.108 billion yuan (- 3.48%), and the gross profit margin increased by 2.81 PCT year-on-year. Lianhua Qingwen ranked first in the sales of Chinese patent medicine cold medicine in the public medical market in 2021h1, and ranked second in the retail sales of cold medicine / heat clearing in 2021; 3) Other patented products achieved revenue of 471 million yuan (+ 55.60%), and second-line varieties such as Jinlida granules and xialiqi capsules increased by more than 90% year-on-year, realizing large-scale growth. 4) Other products achieved a revenue of 1.004 billion yuan (+ 29.15%), and the company has cultivated formula particle business since 2019. In 2021, the sales revenue increased by nearly 300% year-on-year. 182 of 196 national standard products have been developed, with potential performance growth.
Formulate targeted development strategies for 2022 by sectors. 1) The traditional Chinese medicine business will focus on market changes, give play to academic advantages, classify terminal data management, improve possession and brand; 2) The chemical and crude medicine sector will adhere to the development strategy of “transfer processing entry – International and Chinese double registration of generic drugs – R & D, production and sales of patented new drugs”; 3) The health sector will continue to strive to build core and key product brands, give full play to the advantages of R & D and manufacturing through product experience and sales platform, and build high-tech enterprises. In addition, all sectors will carry out product R & D, clinical and industrialization according to the product R & D strategy and plan.
Profit forecast: the company builds scientific research barriers with the theoretical system of “syndrome treatment of collateral diseases”. The existing large varieties and second-line potential varieties in the field of respiratory system, cardio cerebrovascular have good brand power and clinical curative effect, and the market space is large to support long-term development. The performance will maintain growth in 2021. In terms of new business, formula particle business benefits from the policy environment and the competitiveness of the company’s industrial chain, and its performance development has potential. We estimate that the operating revenue of the company from 2022 to 2024 will be 12.290/14.943/18.064 billion yuan respectively, with a year-on-year increase of 21.5% / 21.6% / 20.9%, and the net profit attributable to the parent company will be 1.769/21.96/2.706 billion yuan respectively, with a year-on-year increase of 31.6% / 24.2% / 23.2%, corresponding to the P / E ratio of 23.92/19.27/15.64 times from 2022 to 2024.
Risk factors: the risk of drug price reduction, the risk of raw material price rise, the risk of realizing the benefits of raised investment projects, and the risk of policy adjustment in the pharmaceutical industry.
