\u3000\u3 China Vanke Co.Ltd(000002) 873 Guiyang Xintian Pharmaceutical Co.Ltd(002873) )
Events
On April 28, 2022, the company disclosed the first quarter report of 2022. In the first quarter of 2022, the company achieved an operating revenue of 249 million yuan, a year-on-year increase of 16.10%, and the net profit attributable to shareholders of listed companies was 308793 million yuan, a year-on-year increase of 21.73%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 297275 million yuan, a year-on-year increase of 19.55%. The basic earnings per share is 0.1868 yuan / share.
Event comments
“Two three four R & D pattern formation” to create an innovative R & D pipeline of traditional Chinese Medicine
Focusing on independent R & D, the company has gradually formed a “two three four” R & D pattern: “two” R & D layout in Shanghai and Guiyang, “three” R & D bases of Shanghai Haitian pharmaceutical, Shanghai Shuofeng pharmaceutical and Guiyang Guiyang Xintian Pharmaceutical Co.Ltd(002873) have been established respectively, “four” R & D modules of Shanghai Traditional Chinese medicine new drug innovation research center, Shanghai Shuofeng pharmaceutical, Guiyang technology center and Shanghai product medicine research department have been systematically constructed. The products / projects that the company has completed and is developing include: (1) phase III clinical research has been completed for three varieties, including LongQin pelvic pain Shu granule, zhuyutong granule and Kue Jieyin capsule, and the application for marketing license will be submitted in succession in combination with the actual situation; (2) We are carrying out research on classic and famous prescriptions of traditional Chinese medicine involving Gynecology, pediatrics, geriatrics and respiratory departments. We plan to apply for listing permission after relevant departments release the key information of corresponding prescriptions; (3) Continue to carry out clinical medical research on the company’s key varieties of Kuntai Capsule, Ningbitai Capsule, Sophora flavescens gel and Prunella vulgaris oral liquid, and carry out secondary development of related products.
The product brand advantage has been initially reflected, and the three-year performance doubling plan has been carried out steadily
The company has 32 approval documents for drug production, including 10 varieties in the national medical insurance catalogue, 1 variety in the national essential drugs catalogue, 12 varieties of over-the-counter drugs (OTC) and 12 exclusive varieties. Among them, Kuntai Capsule, Ningbitai Capsule, Kushen gel and other key varieties have achieved a market scale of more than 100 million yuan per product, and the market share of major gynecological products in medical institutions and retail pharmacies has continued to increase, Brand building. In 2022, the company has formulated a more detailed and in-depth strategic deployment and action plan for performance growth. On the basis of business growth compared with 2021, the company will further increase the “breadth, depth and precision” of clinical sales, continue to increase the product coverage of grade hospitals and grass-roots markets, strengthen academic promotion, improve the output of individual hospitals, and strive to achieve the second annual performance goal of the “three-year doubling plan”, Strive to exceed the 2022 targets and tasks.
Clinical marketing has achieved remarkable results, and the OTC market continues to cover
Clinical sales is the company’s key marketing channel. The company has implemented a series of marketing organization and system reforms. Under the effective promotion of the equity incentive plan, the company has fully implemented the assessment mechanism combining responsibilities, tasks and incentive policies, promoted the channel development ability, strengthened the fine management of terminal business, and improved the output of single person, single hospital and single store; Combined with the hospital market currently covered and based on the existing product clusters, iteratively strengthen the product promotion of gynecology line, andrology line and other fields; In addition, the company also set up a special variety marketing team to further explore the promotion of second-line varieties. Through the above measures, remarkable results have been achieved in the implementation of the business growth plan. The company’s OTC market layout started in 2018. In less than four years, by the end of 2021, the company’s OTC market has covered more than 90000 pharmacies in 30 provinces and cities across the country, an increase of 12% over 2020; It covers nearly 800 large and medium-sized mainstream drug chain companies and has continuously strengthened the cooperative relationship between the two sides. The unit yield of drug stores increased by 26.4% over 2020. The company will also increase sales Investment in Internet channels, accelerate the construction and operation of media channels, especially the construction of new media, distribute and disseminate the company’s products through media channels, accurately reach consumers and comprehensively help brand construction.
Investment advice
We expect that the company’s revenue from 2022 to 2024 will be RMB 1.32216902095 billion respectively, with a year-on-year increase of 36.3% / 27.8% / 24.0% respectively. The net profit attributable to the parent company was 135 / 187 / 243 million yuan respectively, with a year-on-year increase of 34.7% / 37.7% / 30.3% respectively, and the corresponding PE was 15.91/11.55/8.87x. Considering the company’s stable product structure, good competition pattern, rich R & D pipelines, continuous penetration of OTC channels and the equity incentive plan to ensure the doubling of three-year performance, we maintain the “buy” investment rating.
Risk tips
Industry policy risk; Product R & D risk; Uncertainty of drug sales, etc.
