\u3000\u3 China Vanke Co.Ltd(000002) 675 Yantai Dongcheng Biochemicals Co.Ltd(002675) )
Event:
1) the company released its 2021 annual report, realizing an operating revenue of 3.912 billion yuan, a year-on-year increase of + 14.42%; The net profit attributable to the parent company was 152 million yuan, a year-on-year increase of – 63.72%; Deduction of net profit not attributable to the parent company was 130 million yuan, a year-on-year increase of – 66.96%; Operating net cash flow was 944 million yuan, a year-on-year increase of + 64.80%; EPS0. 19 yuan. The performance is slightly lower than the market expectation.
2) the company released the first quarterly report of 2022, realizing an operating revenue of 880 million yuan, a year-on-year increase of – 1.18%; The net profit attributable to the parent company was 55 million yuan, a year-on-year increase of – 17.90%; Deduct the net profit not attributable to the parent company of 54 million yuan, a year-on-year increase of – 16.56%; Net operating cash flow was 51 million yuan, a year-on-year increase of – 65.78%; EPS0. 07 yuan. The performance is slightly lower than the market expectation.
Comments:
The impairment of goodwill and the epidemic affected short-term performance, and the cash flow situation improved significantly: from 2021q1 to 2022q1, the operating revenue of the company in a single quarter was RMB 890 / 9.36 / 9.70 / 11.17 / 880 million respectively, with a year-on-year increase of + 24.76% / + 0.34% / + 4.14% / + 32.63% / – 1.18%; The net profit attributable to the parent company was 67 / 0.88 / 1.07 / – 110 / 0.55 billion yuan, a year-on-year increase of -9.44% / – 39.42% / – 10.19% / – 238.56% / – 17.90%; Deduct the net profit not attributable to the parent company of RMB 64 / 0.84 / 1.03 / – 122 / 0.54 billion, a year-on-year increase of -10.47% / – 41.46% / – 9.00% / – 288.45% / – 16.56%. In 2021, the development of various businesses of the company tended to be stable, and the operating revenue showed a quarter on quarter increase trend. 2022q1 was mainly affected by covid-19 epidemic, resulting in negative growth. The main reason for the negative growth of net profit attributable to the parent company in 2021 is that the total goodwill of Yantai Dayang pharmaceutical and Zhongtai biological is 210 million yuan, and the R & D investment of aprinoia is large. The equity method is adopted for the equity investment of the company, resulting in a negative investment income. The cash flow situation improved significantly in 2021, mainly due to the increase of sales receipts. By business segment:
Nuclear medicine: in 2021, the operating revenue was 1.084 billion yuan, a year-on-year increase of + 16.49%, and the gross profit margin was 76.70%, a year-on-year decrease of 1.14pp. The overall gross profit margin of nuclear medicine decreased slightly, which is estimated to be due to the decline in the proportion of Yunke injection revenue with high gross profit margin. In terms of specific business:?
18F-FDG: the operating revenue in 2021 was 398 million yuan, a year-on-year increase of + 24%; The revenue of 2022q1 was 85 million yuan, a year-on-year increase of + 2%.
Yunke injection: the operating revenue in 2021 was 324 million yuan, a year-on-year increase of + 4%; In 2022q1, the income was 46 million yuan, with a year-on-year increase of – 38%. The negative growth of income was affected by the connection between covid-19 epidemic and medical insurance;
Technetium labeled drugs: the operating revenue in 2021 was 100 million yuan, a year-on-year increase of + 18%; In 2022q1, the income was 22 million yuan, with a year-on-year increase of – 5%. The negative growth of income was mainly due to the impact of covid-19 epidemic;?
131I oral liquid: the operating revenue in 2021 was 65 million yuan, a year-on-year increase of + 18%;?
125I sealed seed Original: the operating revenue in 2021 was 152 million yuan, a year-on-year increase of + 36%;
API: in 2021, the operating revenue was 2.266 billion yuan, a year-on-year increase of + 31.29%, and the gross profit margin was 16.83%, a year-on-year decrease of 4.55pp. In 2022q1, the revenue was 529 million yuan, a year-on-year increase of + 3.74%, and the gross profit was + 57.32%. Of which:
Heparin products: the operating revenue in 2021 was 1.932 billion yuan, a year-on-year increase of + 34%;
Preparation: in 2021, the operating revenue was 463 million yuan, a year-on-year increase of – 27.24%, and the gross profit margin was 76.26%, a year-on-year decrease of 7.23pp. Of which:
Natroparin calcium for injection: the operating revenue in 2021 was 426 million yuan, a year-on-year increase of – 31%; The revenue of 2022q1 was 99 million yuan, a year-on-year increase of + 21%.
Both internal and external repair and continuous layout of the large platform of the whole nuclear medicine industry chain: in 2021, the company invested 169 million yuan in R & D, a year-on-year increase of + 34.10%, of which the R & D investment of radionuclide drugs accounted for 60.89%. The company continued to expand the layout of the nuclear medicine industry chain through both endogenous R & D and external cooperation. The company signed the subscription agreement for Series C preferred shares with aprinoia in February 2021 to carry out business cooperation in China. The phase III clinical trial of 18f-apn-1607 was the first subject in China on February 14, 2022 to evaluate the effectiveness of pet in assessing fibrous tau protein deposition; In January 2022, adico, a subsidiary, signed a non binding letter of intent with imaginab, Inc. to introduce zirconium89zrcrefmirlimabberdoxam, which can realize the visualization of immune cells in patients by imaging cd8t cells, so as to monitor the immune response in patients receiving treatment, so as to quickly judge the efficacy of cancer immunotherapy; The bone scan imaging agent of sodium fluoride injection has ended its clinical enrollment, and the relevant work before clinical summary such as group setting, follow-up and database locking is currently under way; Rhenium [188Re] etidronate injection has completed clinical phase 2B clinical case enrollment; Stannous tetroxyphos for cold box injection of 99mTc labeled tetroxyphos products has been approved for listing in March 2022. After the official draft of 53 batches of reference published by CDE is released, the listing registration application of technetium tetroxyphos injection will be carried out; Lannacheng innovative series of nuclear drugs are progressing smoothly as expected. With the continuous enrichment of the company’s nuclear drug product line, the advantages of nuclear drug platform will continue to highlight, laying a solid foundation for the company’s long-term development.
The chairman’s participation in fixed growth shows confidence and replenishing working capital is good for the company’s operation: the company disclosed in November 2021 that it plans to issue shares to Mr. Shouyi, the chairman of a specific object, in a non-public manner, and the total amount of funds raised does not exceed 3499700 yuan (including this amount). After deducting the issuance expenses, it plans to be used to replenish working capital and repay interest bearing liabilities, which is conducive to reducing the asset liability ratio, improving the capital strength of the company and enhancing the solvency, Effectively improve the company’s capital structure, enhance financial robustness, improve the company’s anti risk ability, and reduce the company’s financing cost, which is conducive to the long-term and steady development of the company. At the same time, it shows the firm confidence of the actual controller in the future development of the company. On April 25, 2022, the issuance examination committee of China Securities Regulatory Commission examined the company’s application for non-public offering of shares. According to the review results of the meeting, the company’s application for non-public offering of shares was approved.
Profit forecast, valuation and rating: considering that the covid-19 epidemic has a great impact on the company’s business activities, the forecast of net profit attributable to the parent company from 2022 to 2023 was lowered to 389 / 499 million yuan (the original forecast was 513 / 686 million yuan, down 24% / 27% respectively), and the new forecast of net profit attributable to the parent company in 2024 was 658 million yuan, with a year-on-year increase of 156.92% / 28.23% / 31.70%. According to the latest equity calculation, EPS was 0.49/0.62/0.82 yuan, and the current price corresponding to PE was 22 / 17 / 13 times, Considering that the company’s nuclear medicine business is highly scarce in China and has huge long-term growth space, the “buy” rating is maintained.
Risk warning: the installed capacity of PETCT and other equipment is lower than expected; The layout and construction of nuclear pharmacy is lower than expected; Risk of price fluctuation of heparin API.
