\u3000\u3 China Vanke Co.Ltd(000002) 603 Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) )
Events
On April 28, 2022, the company disclosed the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved an operating revenue of 10.117 billion yuan, a year-on-year increase of 15.19%, and the net profit attributable to shareholders of listed companies was 1.344 billion yuan, a year-on-year increase of 10.27%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 1.265 billion yuan, a year-on-year increase of 8.60%. The basic earnings per share is 0.8044 yuan / share. In the first quarter of 2022, the company achieved an operating revenue of 2.722 billion yuan, a year-on-year decrease of 25.80%, and the net profit attributable to shareholders of listed companies was 484 million yuan, a year-on-year decrease of 28.22%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 490 million yuan, a year-on-year decrease of 26.67%. The basic earnings per share is 0.2899 yuan / share.
Event comments
The company is in the leading position in the three sectors of brain and cardiovascular products
The company has built a pharmaceutical and health industry pattern of coordinated development and mutual promotion of patented traditional Chinese medicine, chemical and biological medicine and health industry, and focused on the R & D pipeline of traditional Chinese medicine. It has formed a unique product layout advantage in the pharmaceutical industry, and has been in a leading position in the field of medication for cardiovascular, cerebrovascular and cold respiratory diseases. From the performance of the public medical end, in the field of cardiovascular and cerebrovascular disease medication, the market share of the company’s three patented traditional Chinese medicines, Tongxinluo capsule, Shensong Yangxin capsule and Qiliqiangxin capsule, increased from 13.6% in 2015 to 17.8% in the first half of 2021. In the field of cold and respiratory disease medication, the market share of Lianhua Qingwen products increased from 9.2% in 2015 to 43.5% in the first half of 2021. In terms of the share of medical end products, Tongxinluo capsule, Shensong Yangxin capsule and Qiliqiangxin capsule of the company ranked second, fifth and ninth respectively in the ranking of oral administration of Chinese patent medicines for cardiovascular diseases in the public medical market in the first half of 2021, and Lianhua Qingwen products ranked first in the sales of Chinese patent medicines for colds in the public medical market in the first half of 2021, Jinlida granule ranked second in the sales of Chinese patent medicine for diabetes in the public medical market in the first half of 2021.
Patented traditional Chinese medicine varieties have excellent clinical efficacy and constitute the main source of sales revenue of the company
At present, the company has 13 patented varieties of traditional Chinese medicine, of which 8 are listed in the national medical insurance catalogue and 5 are listed in the national catalogue of essential drugs. With their excellent clinical efficacy, these patented traditional Chinese medicine varieties have successively entered the consensus or diagnosis and treatment scheme of many clinical experts, creating favorable conditions for the academic promotion of products. The company’s six patented products Tongxinluo capsule, Shensong Yangxin capsule, Qiliqiangxin capsule, Lianhua Qingwen capsule, Jinlida granule and YangZheng Xiaoji capsule all carried out random, double-blind, multi center and large sample evidence-based research. Some of the research results were published in foreign authoritative journals and had a significant impact on the medical circles at home and abroad.
Establish a new drug R & D technology system guided by “collateral disease theory” Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) deeply cultivate the traditional Chinese medicine industry for 27 years. Academician Wu Yiling, the founder of the enterprise, is committed to the inheritance and innovation of traditional Chinese medicine theory. He established the theoretical system of “collateral disease syndrome and treatment” for the first time, and led the R & D of patented new drugs with the innovation of collateral disease theory, forming the unique scientific and technological core competitiveness of the company. In 2021, two varieties of traditional Chinese medicine (Yishen Yangxin Anshen tablet for insomnia and Jieyu Chufan capsule for mild and moderate depression) were approved for listing, and six varieties of traditional Chinese medicine (Qihuang Mingmu capsule, LuoBiTong tablet, Chaihuang Lidan capsule, Yuping Tongqiao tablet, Xiaoer Lianhua qinggan granule and Chaiqin Tonglin tablet) were approved to carry out clinical research, expand the field of new products of mental diseases, and are expected to become a new business growth point of the company.
Actively and continuously carry out post market re evaluation and secondary development of listed traditional Chinese medicine varieties
Aiming at the listed varieties of traditional Chinese medicine, the company carries out pharmacodynamic mechanism research, post marketing clinical evidence-based evaluation and real-world research, verifies the product action mechanism and exact curative effect through experiments and clinical data, provides objective research evidence for the clinical application of Chinese patent medicine, establishes the academic influence and academic status of the products, and further improves the clinical value of the products. “Randomized, double-blind, placebo-controlled, multicenter clinical study of ischemic stroke”, “randomized, double-blind, placebo-controlled multicenter clinical study of YangZheng Xiaoji capsule in improving the quality of life of patients with advanced non-small cell lung cancer after chemotherapy”, “clinical study of Lianhua Qingwen capsule in the treatment of non influenza viral pneumonia” and other evidence-based medical projects have been unblinded, and relevant articles are in the process of writing. In the “randomized, double-blind, placebo-controlled, multicenter clinical study of Jinlida granule in the treatment of type 2 diabetes patients with poor blood glucose control and dyslipidemia”, 50% of the patients in the clamp test as the gold standard were selected. The case selection of “evidence-based medicine research on xialiqi capsule in the treatment of benign prostatic hyperplasia” is about to be completed. “Randomized, double-blind, positive drug control and multicenter clinical study of Lianhua Qingwen granule in the treatment of children’s influenza” has started more than 30 class III hospitals and is in the stage of case selection.
Investment advice
We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 12.270147.17/17.337 billion respectively, with a year-on-year increase of 21.3% / 19.9% / 17.8% respectively, and the net profit attributable to the parent company will be RMB 1.612/19.53/2.311 billion respectively, with a year-on-year increase of 20.0% / 21.1% / 18.3%, and the corresponding PE will be 26.25/21.67/18.31x, maintaining the “buy” rating.
Risk tips
Industry policy risk; Product R & D risk; Uncertainty of drug sales, etc.
