In 2021, when a series of medical insurance fee control policy reforms entered the deep-water area and many outbreaks occurred in many places, pharmaceutical and biological listed companies achieved gratifying results: more than 80% of the enterprises recorded a year-on-year increase in operating revenue last year, and more than 60% of the company’s net profit achieved a year-on-year increase.
From the perspective of subdivided fields, covid-19 testing, covid-19 vaccine and other anti epidemic related companies have achieved outstanding performance. On the basis of doubling or even several times of last year’s annual net profit, many companies continued to achieve double high growth in the first quarter of this year. Last year, due to the high valuation and the “list of entities” storm, the performance of the CXO (Pharmaceutical outsourcing) sector with large stock price fluctuations increased comprehensively, and many enterprises expanded the recruitment of more than 1000 employees in the fourth quarter.
Zheshang Securities Co.Ltd(601878) research report points out that in the long run, CXO, scientific services, vaccines and innovative drugs may usher in sustained high growth. In the short term, the supply chain of covid-19 epidemic, such as nucleic acid detection, antigen detection and covid-19 vaccine, is still very flexible under China’s dynamic clearing and epidemic prevention policy and the continuous interpretation of overseas epidemic situations.
According to statistics, as of press time, a total of 386 listed companies in Shenwan pharmaceutical and biological industry have issued 2021 annual reports, with an overall revenue of more than 2 trillion yuan. The median operating income and net profit were 1.5 billion yuan and 189 million yuan respectively.
Among them, 244 companies had an operating revenue of more than 1 billion yuan in 2021, and 255 companies had a net profit of more than 100 million yuan, accounting for 63% and 66% respectively; There are only 39 loss making companies, 21 less than that in 2020; 20 companies turned losses into profits.
Shanghai Pharmaceuticals Holding Co.Ltd(601607) , Jointown Pharmaceutical Group Co.Ltd(600998) temporarily took the champion and runner up of operating revenue, with 215.8 billion yuan and 122.4 billion yuan respectively; The net profit of the top runner up is Chongqing Zhifei Biological Products Co.Ltd(300122) , Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) , which is 10.2 billion yuan and 8 billion yuan respectively. In terms of performance growth, the operating revenue of Shanghai Allist Pharmaceuticals Co.Ltd(688578) -u, Rongchang biology, Sinocelltech Group Limited(688520) -u, Cansino Biologics Inc(688185) u and the net profit of Beijing Hotgen Biotech Co.Ltd(688068) , Tianjin Lisheng Pharmaceutical Co.Ltd(002393) , Harbin Medisan Pharmaceutical Co.Ltd(002900) all increased by more than 100 times last year.
While the performance is bright, 288 pharmaceutical enterprises plan to pay cash dividends for the financial report of 2021. There are 16 pharmaceutical enterprises with a total dividend of more than 100 million yuan, and the net profits of these companies are more than 150 million yuan.
In the first quarter of this year, pharmaceutical and biological enterprises still achieved brilliant results. 148 companies achieved double growth in operating revenue and net profit, accounting for 54% of the total number of enterprises that have released the first quarter report. In addition to the anti epidemic sector, enterprises of traditional Chinese medicine, API and chemical agents generally achieved performance growth.
From the perspective of subdivided industries, the performance of Companies in the track of medical devices and chemical agents is outstanding, especially covid-19 vaccine and covid-19 test related to anti epidemic. The average operating revenue of 35 covid-19 testing related enterprises increased by 67% last year, and the average net profit increased by 112%.
The net profit of Cansino Biologics Inc(688185) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , Daan Gene Co.Ltd(002030) and other pharmaceutical enterprises hit a record high last year. Among them, Cansino Biologics Inc(688185) 2021 achieved a net profit attributable to the parent company of 1.914 billion yuan, making a profit for the first time. The securities abbreviation was changed from ” Cansino Biologics Inc(688185) -u” to ” Cansino Biologics Inc(688185) “, becoming the first pharmaceutical enterprise to successfully “pick u” on the science and innovation board.
In the first quarter of this year, enterprises in covid-19 testing sector continued to maintain a high growth trend Zhejiang Orient Gene Biotech Co.Ltd(688298) in the first quarter of this year, the annual net profit increased by 74% on the basis of 193% year-on-year Hangzhou Biotest Biotech Co.Ltd(688767) net profit increased by 111% in the first quarter of this year, up from 91% last year.
In addition, the net profit growth of Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Wuhan Easy Diagnosis Biomedicine Co.Ltd(002932) , Guangdong Hybribio Biotech Co.Ltd(300639) , Xilong Scientific Co.Ltd(002584) and other companies exceeded 100% in the whole year of last year and the first quarter of this year. Andon Health Co.Ltd(002432) , which has successively won a large order of covid-19 antigen detection reagents in the United States, is expected to have a net profit of more than 14 billion yuan in the first quarter of this year, with a year-on-year increase of more than 367 times.
Although at the end of last year and since this year, the share prices of CXO leading companies have repeatedly plummeted due to rumors such as high valuation and “entity list”, in terms of performance, the results of these companies still maintain steady growth. Among the 23 companies that have issued the 2021 annual report, only Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) one company’s revenue declined and only four companies’ net profit declined.
Under the normalization of centralized procurement, many pharmaceutical enterprises began to lay off staff sharply. On the contrary, CXO enterprises as a whole expanded their enrollment on a large scale last year. Of the 23 companies that have disclosed their annual reports, only Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) one had a decrease in the number of employees in the fourth quarter of last year, while the number of employees in other enterprises increased, and the number of leading enterprises increased by more than 1000.
Wuxi Apptec Co.Ltd(603259) the number of employees at the end of the third quarter of last year was 28542, but by the end of the fourth quarter, it had increased to 34912. More than 6000 people were recruited in three months, with an expansion rate of more than 20%. In addition, the number of employees of the other three listed companies Pharmaron Beijing Co.Ltd(300759) , Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Hangzhou Tigermed Consulting Co.Ltd(300347) in the fourth quarter of last year increased by more than 1000.
Pharmaron Beijing Co.Ltd(300759) last year, we continued to increase the construction of laboratory facilities and further strengthen the global deployment of laboratory services. In the fourth quarter alone, more than 2000 people were recruited, most of them experimental service personnel. By the end of last year, the number of employees had reached 14923, 90% of which were R & D, production technology and clinical service personnel. There were 1149 employees engaged in clinical research at the end of 2020, of which 339 were engaged in clinical research.
