\u3000\u3 Shengda Resources Co.Ltd(000603) 707 Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) )
Key investment points
Event: 1) the company] released the annual report of 2021, with annual revenue of 3.69 billion yuan (+ 26.5%), net profit attributable to the parent company of 1.06 billion yuan (+ 31.4%), and non net profit attributable to the parent company of 1.02 billion yuan (+ 33.5%). 2) The company released the first quarterly report of 2022. In 2022q1, the revenue was 1.18 billion yuan (+ 33.2%), and the net profit attributable to the parent company was 330 million yuan (+ 21%); The non net profit attributable to the parent company is RMB 330 million (+ 23.7%).
The strong growth of the company's business accelerated the progress of internationalization. In 2021, the company's performance was brilliant, the growth rate of operating revenue was 26.5%, and the profit side increased strongly by more than 30%. Quarterly, the revenue of 21q1 / Q2 / Q3 / Q4 was 8.8 / 8.7 / 10.3 / 910 million yuan (+ 20.3% / + 31.2% / + 34.9% / + 19.8%), and the net profit attributable to the parent company was 2.7 / 2.8 / 2.9 / 220 million yuan (+ 33.5% / + 38.5% / + 41.3% / + 11.2%). Q1 revenue was 1.18 billion yuan (+ 33.2%), and the revenue side grew steadily; The net profit attributable to the parent company is 330 million yuan (+ 21%), which is expected to fluctuate slightly due to the impact of logistics. Profitability: in 2021 and 2022q1, the gross profit margin is 56.7% (- 2.3ppt) and 50.5% (- 7.1ppt) respectively, and the net profit attributable to the parent company is 28.7% (+ 1.1ppt) and 28.1% (- 2.8ppt) respectively. The decline in gross profit margin is mainly caused by the increase in transportation costs caused by overseas preparation sales and the change in the recognition method of preparation revenue caused by centralized purchase and other sales modes; Expense rate: the sales rate of 2021 and 2022q1 is 13.1% (- 2.2ppt) and 8.7% (- 5%) respectively; The management rates were 3.3% (- 0.2ppt) and 2.7% (- 0.4ppt) respectively. The sales of preparations led to an increase in travel promotion fees and personnel salaries, but the rapid growth of income led to a decrease in the rates; The R & D expenses in 2021 and 2022q1 were 220 million yuan (+ 17.8%) and 53.46 million yuan (+ 57.7%) respectively, and the R & D investment continued to grow; The financial rates of 2021 and 2022q1 are relatively stable, which are 2% (+ 0ppt) and 0.9% (- 0.4ppt) respectively.
The preparation business is growing rapidly, and the internationalization strategy continues to deliver results. In 2021, the preparation revenue was 2.13 billion yuan (+ 44.5%), overseas: meitheal, an American enterprise acquired in October 2019, had a revenue of 1.041 billion yuan (+ 50%) in 2021; The share of some products in the US market is stable (30% for benzenesulfonate cisatracurium injection, 20% for Bleomycin Injection and gemcitabine injection); In 2021, the company's 11 injections anda were approved by FDA and 57 drug production approvals in the United States. It is one of the suppliers with the most complete injection sales pipeline in the United States. China: baixiaoan, bendamostine hydrochloride, milrinone, fondaparinux sodium injection and other products have been approved, among which baixiaoan is the first product deemed to pass the consistency evaluation in China; In June 2021, cisatracurium besylate and bendamostine hydrochloride for injection won the bid for the fifth batch of national centralized procurement, among which cisatracurium besylate was the first imitation listed in China. In 2021, the company's Chinese preparation revenue increased by 25% year-on-year, and China's injection market position continued to improve.
The revenue of heparin API is stable, and cdmo is about to usher in the harvest period. In 2021, the company's heparin API business remained stable, with a revenue of 1.43 billion yuan (+ 9.5%). Heparin and low molecular weight heparin preparations grew strongly. In 2021, the global sales exceeded 90 million, with a year-on-year increase of more than 60%; In 2021, the company's cdmo business revenue was 120 million yuan (- 7.2%), and the harvest period is coming. The subsidiary Jianjin pharmaceutical promotes the innovative biological macromolecular drug cdmo project, and the company's transformation from small molecular chemical drugs to macromolecular biological drug stock solution + Preparation cdmo integration can be expected in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 1.06 yuan, 1.24 yuan and 1.57 yuan respectively, and the corresponding PE will be 37, 28 and 22 times respectively. Maintain a "hold" rating.
Risk tip: the price and sales volume of heparin API are lower than expected; The sales of preparation products are less than expected; Anda was approved less than expected; R & D progress is less than expected.
