\u3000\u3 China Vanke Co.Ltd(000002) 675 Yantai Dongcheng Biochemicals Co.Ltd(002675) )
Event: in 2021, the company realized an operating revenue of 3.91 billion yuan, a year-on-year increase of 14.42%; The net profit attributable to the parent company was 150 million yuan, a year-on-year decrease of 63.72%; The net profit attributable to the parent company after non deduction was 130 million yuan, a year-on-year decrease of 66.96%. In 2022q1, the company achieved an operating revenue of 880 million yuan, a year-on-year decrease of 1.18%; The net profit attributable to the parent company was 54.922 million yuan, a year-on-year decrease of 17.90%; The net profit deducted from non parent company was 53.664 million yuan, a year-on-year decrease of 16.56%.
The provision of goodwill dragged down the apparent performance, and the overall performance of the company increased steadily in 2021: in 2021, the company accrued the goodwill of Yantai Dayang pharmaceutical and Zhongtai biological, totaling 210 million yuan. If the provision of goodwill is excluded, the company realized a net profit attributable to the parent of 362 million yuan. In terms of business, among the company’s key nuclear drug products in 2021, 18F-FDG achieved revenue of 400 million yuan (+ 24%, year-on-year, the same below), Yunke injection achieved revenue of 320 million yuan (+ 4%), and 125I sealed seed achieved revenue of 150 million yuan (+ 36%); The company’s key preparation product nadroparin calcium injection for injection achieved an income of 430 million yuan (- 31%); Heparin products achieved a revenue of 1.93 billion yuan (34%).
The epidemic affected the normal diagnosis and treatment business of the hospital and dragged down the Q1 performance of the company: in Q1 2022, affected by the epidemic, the routine diagnosis and treatment business of some hospitals could not be carried out, and the sales revenue of some key products of the company declined. In the nuclear medicine sector, the revenue of FDG injection was 84.74 million yuan (+ 2%), and the revenue of technetium standard drugs was 21.6 million yuan (- 5%); The revenue of API was 530 million yuan (+ 3.74%), and that of nadroparin calcium for injection was 98.5 million yuan (+ 21%); Yunke injection achieved a revenue of 46.43 million yuan (- 38%).
The policy is good for the development of the industry and the layout of the company’s nuclear medicine is perfect: in recent years, the diagnosis and treatment advantages of nuclear medicine in tumors and other diseases have gradually attracted great attention of the state. The introduction of relevant policies will promote the all-round development of nuclear medicine. In addition, by the end of March 2022, 191 petcts had been installed in China, and a total of 52 PET-CT had been installed in 2021. The steady increase of PET-CT installed capacity will also drive the demand for nuclear drugs. The company’s nuclear medicine layout is perfect, and its products cover China’s mainstream nuclear medicine varieties, including not only diagnostic positron medicine 18F-FDG, single photon medicine technetium [99mTc] labeled medicine and other medicine urea [14C] capsules, but also therapeutic medicine Yunke injection, iodine [125I] sealed seed source and other products. It is expected to take full advantage of the steady increase in the allocation of large-scale medical equipment such as policy Dongfeng and PET-CT to realize the steady growth of the revenue of the nuclear medicine sector.
Profit forecast and investment rating: considering the impact of the epidemic, we lowered the forecast of net profit attributable to the parent company in 2022 / 2023 from 522 / 710 million yuan to 378 / 498 million yuan. It is predicted that the net profit attributable to the parent company in 2024 will be 633 million yuan, and the current market value corresponding to PE is 22 / 17 / 13 times respectively, maintaining the “buy” rating.
Risk warning: price fluctuation risk of API, repeated covid-19 epidemic risk, exchange gain and loss risk.
