\u3000\u30 China Baoan Group Co.Ltd(000009) 63 Huadong Medicine Co.Ltd(000963) )
Events
Recently, the company released its 2021 annual report and the first quarterly report of 2022. In 2021, the annual operating revenue was 34.563 billion yuan (+ 2.61%), the net profit attributable to the parent company was 2.302 billion yuan (- 18.38%), and the net profit not attributable to the parent company was 2.189 billion yuan (- 9.91%); In the first quarter of 2022, the revenue was 8.933 billion yuan (+ 0.4%), the net profit attributable to the parent company was 704 million yuan (- 7.12%), and the net profit not attributable to the parent company was 699 million yuan (+ 0.39%). 2021q4 and 2022q1 businesses continued to rebound, and the decline of net profit attributable to parent company was significantly narrower than that of Q3. After deducting the quarterly year-on-year index of net profit not attributable to parent company, it has turned to positive growth.
Comments
The performance of the pharmaceutical industry recovered significantly in the first quarter, and the performance of industrial microorganisms was brilliant
The core subsidiary of the company’s pharmaceutical industry, Central America and East China, achieved an operating revenue of 10.109 billion yuan in 2021, a year-on-year decrease of 8.43%, and a net profit of 2.092 billion yuan, a year-on-year decrease of 10.32%, which was narrowed compared with the first three quarters; In 2022q1, the operating revenue was 2.791 billion yuan, an increase of 19.45% over Q4, and the deduction of non net profit was 580 million yuan, an increase of 48.08% over Q4. The overall business trend stabilized. The company’s variety introduction continued to reap: 1) in October 2021, it obtained the exclusive license for 8 products under research of ashvattha company; 2) In February 2022, arcalyst was reached with kiniksa of the United States ® Equity cooperation with mavrilimumab; 3) In February, it obtained the rights and interests of hdp-101 and hdp-103 of Heidelberg company and the exclusive option of two products under research.
The company’s demand for external orders for industrial microorganisms continued to grow rapidly. In 2021, the revenue was 418 million yuan, and the operating revenue in 2021 / 2022q1 increased by 69.2% / 99% year-on-year respectively. The company has strategically planned and laid out a full Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) platform, and the invested Meiqi health and acquired Huachang high tech have been successfully put into operation.
The territory of Yimei expanded again, and its sales continued to grow at a high rate
According to comparable standards (excluding Ningbo in East China), the operating revenue of the medical and beauty sector in 2021 was 1.002 billion yuan (+ 123.28%), of which the “girl needle” yiyanshi achieved 99% growth in the global market; The operating revenue in 2022q1 was 453 million yuan (+ 226.8%). At present, the company has 35 “minimally invasive + non-invasive” medical beauty international high-end products, including 21 listed products and 14 innovative products under research. The number and coverage of products rank among the forefront of the industry. In February, it acquired 100% equity of viora, a global energy source medical and beauty instrument company, and in March, Kuxue glacialspa ® Sales in China.
Innovative drugs and biological similar drugs business ushered in a number of milestone important nodes
① endocrinology: the indication of liraglutide for diabetes is expected to be approved for listing before the end of 2022. The phase III clinical study on the indication for weight loss has been completed in China, and it is expected to apply for listing in Q2; ② Anti tumor: Soraya test of hdm2002 has reached the main end point; ③ Autoimmunity: hdm3001 phase III clinical trial was completed ahead of schedule in February. All subjects were enrolled in the group, arcalyst ® It is expected to accelerate the progress of listing in China.
Profit forecast and investment rating: we believe that the company’s sales in the medical, American and industrial microbiology sectors are better than expected. It is estimated that the company’s operating revenue from 2022 to 2024 will be 38.422/41.863/46.423 billion yuan respectively (38.382/41.413 billion yuan before 2022 / 2023), and the net profit attributable to the parent company will be 30.60/35.10/41.36 billion yuan (29.30/3.390 billion yuan before 2022 / 2023), maintaining the “buy” rating.
Risk warning: price reduction of main products, less than expected research and development progress, exchange rate fluctuation risk
