\u3000\u30 Fawer Automotive Parts Limited Company(000030) 20 Hefei Lifeon Pharmaceutical Co.Ltd(003020) )
Event: in 2022q1, the company achieved a revenue of 630 million yuan, a year-on-year increase of 14.5%, a net profit attributable to the parent company of 47.13 million yuan, a year-on-year increase of 13.0%, and a net profit not attributable to the parent company of 43.88 million yuan, a year-on-year increase of 9.5%.
The performance of 2022q1 increased steadily, and the profit margin and expense rate remained stable. In 2022q1, the company's revenue increased by 14.5% year-on-year, the net profit deducted from non parent company increased by 9.5% year-on-year, and the performance increased steadily. 22q1 gross profit margin was 39.2%, down 0.1pct year-on-year, net profit margin was 7.5%, down 0.1pct year-on-year, and profit margin remained stable; The sales expense rate / management and R & D expense rate were 25.9% / 4.0% respectively, and 26.1% / 4.0% in the same period last year. The expense rate level was well controlled.
The company continues to increase R & D investment, enrich product lines, layout new fields and help the company's long-term sustainable development: the R & D cost of 2022q1 is 13.199 million yuan, with a year-on-year increase of 6.4%. At present, three products have been applied for production CDE review, and several products have completed pilot research and process development. It is expected that they will be approved in succession in the future, which will continue to bring performance growth to the company. At the same time, the company's procaine API has been accepted for listing registration. After approval, it will further enrich the API product pipeline. On May 10, 2021, the company reached an agreement with Anhui shuangke Pharmaceutical Co., Ltd. to transfer the ownership of 13 eye drops such as Jinzhen eye drops with RMB 38 million and lay out a new field of Ophthalmology.
Osmotic pump controlled release is the company's core technology, and the potential of core varieties is expected to accelerate the release: 1) slow and controlled release preparations: many varieties have annual sales of more than 1 billion, with the characteristics of high barriers, rich technical types, and the decline of centralized collection is lower than that of ordinary oral preparations. In addition, osmotic pump preparations under research in many stages, such as be research, pilot scale-up and pharmaceutical research, have been completed; 2) Traditional Chinese medicine: yiqihewei capsule, as the exclusive variety of national basic medicine, has a year-on-year increase of 107% in revenue in 2021. It is expected to become a billion pound product during the 14th Five Year Plan period. As the exclusive product of national basic medicine, Kunning granule, a Chinese patent medicine for gynecology, has a year-on-year increase of 46.7% in sales revenue in 2021, with growth potential.
Investment suggestion: Hefei Lifeon Pharmaceutical Co.Ltd(003020) continue to improve the industrial layout of the pharmaceutical industry, based on the rich varieties of chemical agents, raw materials and exclusive traditional Chinese medicine, refined hemp products and ophthalmic products in new fields are ready to go. We expect the company's net profit attributable to the parent company from 2022 to 2024 to be RMB 230 / 3.1 / 390 million respectively, maintaining the "buy" rating.
Risk warning: the risk that the price reduction range of regional insurance exceeds the expectation; Risks of intensified industry competition; The risk of repeated epidemic affecting sales; Risk that the product progress is less than expected.
