\u3000\u3 China Vanke Co.Ltd(000002) 675 Yantai Dongcheng Biochemicals Co.Ltd(002675) )
Event: the company released its annual report for 2021, realizing an operating revenue of 3.912 billion yuan (+ 14.42%), a net profit attributable to shareholders of listed companies of 152 million yuan (- 63.72%), and a net profit attributable to shareholders of listed companies of 130 million yuan (- 66.96%) after deduction. In the first quarter of 2022, the operating revenue was 879 million yuan (- 1.17%), the net profit attributable to shareholders of listed companies was 54.92 million yuan (- 17.90%), and the net profit attributable to shareholders of listed companies after deduction was 53.66 million yuan (- 16.56%).
The impairment of goodwill and losses of participating enterprises dragged down the performance, and the nuclear drug business was stable and good. The decline of the company's performance in 2021 is mainly due to: (1) the provision for the impairment of the goodwill of Dayang pharmaceutical and Zhongtai biology, reducing the net profit by 211 million yuan; (2) a number of diagnosis and treatment products of the joint-stock company aprinoa therapeutics are in the process of R & D, with large R & D investment, and the investment income confirmed by the equity method is about - 19 million yuan. After excluding the above factors, the main business of the company is still relatively stable. In terms of business, the revenue of nuclear medicine is 1.084 billion yuan (+ 76.70%), of which the revenue of Yunke injection is 324 million yuan (+ 4%); The income of ffdg was 398 million yuan (+ 24%), which still achieved rapid growth under the disturbance of the epidemic. API achieved an operating revenue of 2.266 billion yuan (+ 57.92%), with a gross profit margin of 16.83%, a year-on-year decrease of 4.55 percentage points; However, in terms of spin off, the company's API business achieved a gross profit of 233 million yuan (+ 84%) in the second half of 2021, with a gross profit margin of 19.22%, an increase of 3.04 percentage points year-on-year, and the marginal improvement trend is obvious.
The epidemic affected the sales of nuclear drugs in the first quarter, and the API business remained in a good trend. The company's profit fell in both the first quarter and the second quarter of 2021 The spread of the epidemic had an impact on the normal diagnosis and treatment order of the hospital. The income of 18F-FDG injection was 84.74 million yuan, a year-on-year increase of 2%, and the income of technetium labeled drugs was 21.6 million yuan, a year-on-year decrease of 5%; (2) Yunke injection achieved an income of 46.43 million yuan, a year-on-year decrease of 38%, mainly due to the connection between the normal hospital diagnosis and treatment order and medical insurance affected by the epidemic. The API business remained in a good trend, achieving an operating revenue of 529 million yuan (+ 3.74%), with a year-on-year increase in gross profit of 57.32%. We calculated that the gross profit margin of the company's API business in the first quarter was 18.90%, and the gross profit increased by about 36 million yuan year-on-year. Considering that the crude heparin price is still low and the price of liver API is relatively stable, we believe that the company's API business will maintain a good profit level in 2022.
The echelon of nuclear drug products is gradually enriched to provide new performance momentum. In 2021, a number of nuclear drugs under development of the company were progressing smoothly, and the clinical enrollment of sodium fluoride injection was completed, and relevant work before clinical summary was under way; Rhenium [188Re] etidronate injection completed the clinical phase 2B clinical case enrollment. 18f-apn-1607 cooperated with Xinxu livelihood is in clinical phase III in China. The company's nuclear drug product echelon is gradually enriched. After listing in the future, it will quickly complete the market coverage with the help of mature nuclear pharmacies
Profit forecast and Valuation: we estimate that the operating revenue of the company from 2022 to 2024 will be 4.114 billion yuan, 4.493 billion yuan and 4.947 billion yuan respectively, with a year-on-year growth rate of 5.2%, 9.2% and 10.1% respectively; The net profit attributable to the parent company was 409 million yuan, 497 million yuan and 602 million yuan respectively, with a year-on-year growth rate of 169.6%, 21.5% and 21.2% respectively. Based on the closing price on April 28, the corresponding PE was 20.2, 16.6 and 13.7 times respectively, maintaining the "buy" rating.
Risk warning: the epidemic situation affects product sales; The profitability of API is lower than expected; Goodwill impairment.
