\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 085 Beijing Tongrentang Co.Ltd(600085) )
Conclusions and suggestions:
Company performance: in 22q1, the company achieved a revenue of 3.95 billion yuan, yoy + 6.7%, and recorded a net profit of 400 million yuan, yoy + 25.6%, yoy + 25.1% after deduction. The company's performance was better than expected.
The price increase of main varieties promotes the growth of the pharmaceutical industry, and the epidemic situation is estimated to affect the Q1 performance of the commercial sector: the pharmaceutical industry of the company is estimated to have increased significantly under the background of the price increase of about 10% of large varieties such as Angong Niuhuang Pill and Tongren Niuhuang Qingxin pill by the end of 2021, and the gross profit margin of the sector is also estimated to have increased. The Q1 epidemic in Hong Kong is serious, and the pharmaceutical business sector of the company is estimated to be affected to some extent.
The gross profit margin increased and the sales expense rate increased: the company's Q1 comprehensive gross profit margin was 48.3%, an increase of 1.6 percentage points year-on-year. We believe that it is mainly due to the price increase of the company's main products, and we believe that the price increase of products will push up the annual performance level. The expense rate during the period was 29.7%, with a year-on-year increase of 0.4 percentage points. Among them, the sales expense rate increased by 0.8 percentage points to 19.8% year-on-year, which we believe is mainly due to the company's increased sales of products. The rate of administrative expenses decreased by 0.8 percentage points to 8.9%, the rate of R & D expenses increased by 0.4 percentage points to 0.8%, and the rate of financial expenses decreased by 0.1 percentage points to 0% year-on-year. The management was continuously optimized.
The company has a high recognition of the classic brand of "Niuzi pill" and "Laoniu pill" in the Chinese market, and has a high recognition of the price rise of its products in the market of "Huangzi pill" and "Laoniu pill", which are well recognized by colleagues in China.
Profit forecast: we estimate that the net profit of the company in 2022 and 2023 will be 1.49 billion yuan and 1.7 billion yuan respectively, yoy will be + 21.7% and + 13.9% respectively, EPS will be 1.1 yuan and 1.2 yuan, corresponding to 34 times and 30 times of PE. Although the current valuation of the company is not low, the market acceptance of the company's products after the price increase is high, the brand premium ability is high, and the Q1 performance is better than expected. We give "buy" suggestions.
Risk warning: raw material price rise exceeds expectations, epidemic disturbance exceeds expectations, and market competition increases
