\u3000\u3 Guocheng Mining Co.Ltd(000688) 658 Youcare Pharmaceutical Group Co.Ltd(688658) )
Steady growth will be achieved in 2021, and the adjustment of product structure will continue to advance
On April 28, Youcare Pharmaceutical Group Co.Ltd(688658) issued the annual report for 2021. In 2021, the company's revenue was 4.966 billion yuan, a year-on-year increase of 14.45%; The net profit attributable to the parent company was 545 million yuan, a year-on-year increase of 23.34%; Deduct the net profit not attributable to the parent company of 510 million yuan, with a year-on-year increase of 30.17%, and the company's operating performance continued to grow healthily. Among the top five products, the sales volume of Ginkgo biloba extract injection was 149984900, with a year-on-year increase of 44.32%; The sales volume of cefuroxime sodium for injection (self-produced) was 1253895 million, with a year-on-year increase of 34.09%. The sales volume of cefuroxime sodium for injection (minkexin) was 295757 million, with a year-on-year decrease of 33.28%. The Ginkgo biloba extract injection with high gross profit is rapidly in large quantities, the agent products with low gross profit are gradually declining, the company's product structure is gradually adjusted, and its profitability continues to improve. The gross profit margin has increased from 43.03% in 2017 to 69.24% in 2021. With the continuous adjustment of product structure, the profitability of the company will continue to improve. In recent years, the company has increased R & D investment and long-term development of energy storage, and the corresponding R & D expenses have increased. We lowered the profit forecast for 20222023 and added a new profit forecast for 2024. It was originally estimated that the net profit attributable to the parent company in 20222023 was 730 / 960 million yuan and EPS was 162 / 2.13 yuan respectively. It was adjusted to the net profit attributable to the parent company in 20222024 was 710 / 927 / 1208 million yuan and EPS was 1.58/2.06/2.69 yuan. The current share price corresponding to PE was 11.1/8.5/6.5 times respectively, The valuation is cost-effective and maintains the "buy" rating.
The pipeline under research has made steady progress, the product structure of 2022q1 has been continuously adjusted, and the growth of revenue side is slow
Relying on its own innovative drug platform, the company reserves more research projects in various development stages, including hydroxysafflower yellow A for injection of traditional Chinese medicine innovative drug; Chemical medicine innovation drug: umoselta hydrogen sulfate capsule; At the same time, the company has built a nucleic acid technology platform and arranged a nucleic acid drug echelon. The ct102 project has made the fastest progress and is currently in phase I clinical stage.
On April 28, the company issued a report for the first quarter of 2022, with a revenue of 901 million yuan (+ 2.48%) in 2022q1; The net profit attributable to the parent company was 63.47 million yuan (- 9.58%). In 2022q1, the share based payment expense was confirmed to be RMB 24.55 million, resulting in significant changes in operating costs, period expenses and profits. After excluding the impact of share based payment, the company realized a net profit of RMB 85.01 million during the reporting period, with a year-on-year increase of 20.96%. We expect that the main reason for the slow growth of revenue is the continuous decline of low gross profit products and the continuous adjustment of product structure.
Risk tips: the price reduction risk of Ginkgo biloba extract injection, the sales of new products are less than expected, and the R & D progress is less than expected
