Pharmaceutical industry: as of March 2022, the cumulative operating revenue was 693.66 billion yuan, an increase of 5.5% over the same period in 2021, and the total profit was 106.56 billion yuan, an increase of - 8.9% over the same period in 2021. The growth rates of cumulative revenue and net profit in 2021 were 20.1% and 77.9% respectively; The growth rates of drug sales in Q1, Q2, Q3 and Q4 of PDB sample hospitals in 2021 were - 21.8%, 14.5%, 1.7% and - 4.0% respectively; In 2021, the growth rate of total revenue of 344 pharmaceutical listed companies was 16.6%, the growth rate of total net profit attributable to parent companies was 28.5%, and the growth rate of total net profit excluding non attributable to parent companies was 31.7%; In 2022q1, the growth rate of total revenue and total net profit deducted from non parent company was 21.0% and 44.1%. The R & D expenses of Listed Companies in the pharmaceutical industry from 2021q1 to 2022q1 increased year-on-year, and were not affected by the epidemic.
Chemical agents: the total revenue of 82 listed companies of chemical agents increased by 9.4%, the total net profit attributable to the parent company increased by 13.7%, and the total net profit excluding non attributable to the parent company increased by 9.4% in 2021. In 2022q1, the growth rate of total revenue was 4.32%, the growth rate of total net profit attributable to parent was - 11%, and the growth rate of total net profit deducting non attributable to parent was - 4.32%. The year-on-year growth of revenue in 2022q1 was stable, but the profit decreased slightly year-on-year, mainly due to the high base of 2021q1.
Innovative drug industry chain: the total operating revenue of 23 CXO companies in 2021 increased by 40.1% year-on-year, and the total net profit deducted from non parent companies increased by 42.3% year-on-year; In 2022q1, the total operating revenue increased by 66.7% year-on-year, and the total net profit deducted from non parent company increased by 83.0% year-on-year; In 2022, the industry still maintained high growth. In the short term, benefiting from covid-19 related businesses, the revenue growth of the industry is obvious; In the long run, benefiting from the rise of Chinese innovative drugs, the transfer of overseas industries and the improvement of the global competitiveness of leading companies, the industry will maintain a high outlook in the medium and long term. wait.
API: the total revenue of 40 API companies increased by 12.8% year-on-year in 2021, the total net profit attributable to the parent company increased by - 9.4% year-on-year, and the total net profit excluding non attributable to the parent company increased by - 9.7% year-on-year. Due to the rise in the price of raw materials in the second half of 2021, there was great pressure on the profit side in 2021. In 2022q1, the year-on-year growth rate of total revenue was 10.1%, the year-on-year growth rate of total net profit attributable to parent was 4.37%, and the year-on-year growth rate of total net profit excluding non attributable to parent was 6.8%. With the consumption of raw material inventory in Q1, the profitability of API enterprises is expected to recover significantly from Q2. In the short term, the API industry was affected by the rise in the price of raw materials in the second half of 2021. In 2022q1, the influencing factor was basically eliminated and the profitability was gradually restored. In the medium and long term, the integration of API preparation and cdmo is the inevitable trend of API industry, and the profitability of enterprises is significantly enhanced. We are optimistic about API enterprises that have a rapid volume of downstream preparations, integration of API preparations, or can enter the cdmo field horizontally and master key intermediate links. Recommended Jiangxi Synergy Pharmaceutical Co.Ltd(300636) , Zhejiang Starry Pharmaceutical Co.Ltd(603520) , Apeloa Pharmaceutical Co.Ltd(000739)
Traditional Chinese medicine: the total operating revenue of 65 traditional Chinese medicine companies in 2021 increased by 9% year-on-year, and the total net profit deducted increased by 17.3% year-on-year; In 2022q1, the total operating revenue increased by 1.7% year-on-year, and the total net profit deducted increased by 2% year-on-year. Encouraged by policies, the traditional Chinese medicine industry is entering a new stage of development. The epidemic affects short-term performance, and the logic of long-term development remains unchanged. Recommendation: Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ( Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) ), attention is recommended: Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) ( Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) ), China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ( China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) ), Jiangsu Kanion Pharmaceutical Co.Ltd(600557) ( Jiangsu Kanion Pharmaceutical Co.Ltd(600557) ), Zhejiang Jolly Pharmaceutical Co.Ltd(300181) ( Zhejiang Jolly Pharmaceutical Co.Ltd(300181) ), etc.
Biological products: the total operating revenue of 50 listed companies of biological drugs (vaccines, blood products and other biological products) increased by 40.3% year-on-year in 2021, and the total net profit returned to the parent after deduction increased by 597.4% year-on-year. The year-on-year growth rate of total revenue in 2022q1 was 25.6%, and the growth rate of total net profit attributable to the parent company after deducting non profits was 13%. Revenue and profit increased significantly in 2021, mainly due to the rapid growth of the vaccine industry driven by the epidemic, and the growth rate slowed down in 2022q1, mainly due to the high base in 2021.
Medical devices: in 2021, the total revenue of 99 medical device companies increased by 21.1% year-on-year, the total net profit attributable to the parent company increased by 21.0% year-on-year, and the total net profit deducted from non attributable to the parent company increased by 18.7% year-on-year; The year-on-year growth rate of total revenue in 2022q1 was 59.0%, and the year-on-year growth rate of total net profit deducted from non parent company was 90.7%. The growth of 2022q1 industry was significantly higher than that in 2021q4, which was mainly due to the sharp increase of orders for epidemic related products of some companies. We believe that the epidemic has exposed the shortcomings of China's medical system. The new infrastructure will bring tens of billions of incremental markets for relevant medical equipment in the next three to five years, and domestic medical equipment with high cost performance is expected to benefit the most; In addition, the emergence of new technologies often brings industrial changes, and new investment opportunities are expected to appear. Recommendations: Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ), Qingdao Novelbeam Technology Co.Ltd(688677) ( Qingdao Novelbeam Technology Co.Ltd(688677) ), Shanghai Kindly Enterprises Development Group Co.Ltd(603987) (683987), Autek China Inc(300595) ( Autek China Inc(300595) ), Eyebright Medical Technology(Beijing) Co.Ltd(688050) ( Eyebright Medical Technology(Beijing) Co.Ltd(688050) ), etc.
Medical services: the total revenue, net profit attributable to the parent and net profit deducted from non attributable to the parent of 12 listed companies (hospitals + diagnostic services) in medical services in 2021 increased by 21.5%, - 10.8% and 18.6% respectively year-on-year. In 2022q1, the year-on-year growth rates of revenue, net profit attributable to the parent and total net profit deducted from non attributable to the parent were 29.11%, 27.14% and 28.55% respectively. Diagnostic services increased rapidly in 2020 and 2021 due to the incremental demand brought by the epidemic, while the performance growth of hospitals rebounded in 2021 due to the lag of medical treatment and passenger flow control caused by the epidemic. In 2022q1, the overall performance growth of medical services rebounded.
In the short term, the epidemic has brought performance fluctuations; In the long run, China's aging population and consumption upgrading will promote the sustained and robust growth of medical service demand, reflecting the growth toughness and long-term development space of medical services. It is suggested to pay attention to: Aier Eye Hospital Group Co.Ltd(300015) ( Aier Eye Hospital Group Co.Ltd(300015) ), haijiya (6078), Guangzhou Kingmed Diagnostics Group Co.Ltd(603882) ( Guangzhou Kingmed Diagnostics Group Co.Ltd(603882) ), Bgi Genomics Co.Ltd(300676) ( Bgi Genomics Co.Ltd(300676) ), etc.
Retail pharmacies: in 2021, the revenue, net profit attributable to the parent and total net profit deducted from non attributable to the parent of 6 pharmacies increased by 14.9%, - 0.6% and - 2.6% respectively year-on-year; In 2022q1, the total revenue, net profit attributable to parent company and net profit deducted from non attributable to parent company are 16.9%, - 1.35% and 1.99% respectively; The decline in performance growth in 2021 was mainly affected by the recurrence of the epidemic and the high base in 2020. The growth rate of revenue and profit in 2022q1 increased year-on-year and month on month. In the long run, the medical demand and the outflow of prescription drugs promote the steady growth of the industry, and the endogenous growth and extension expansion of listed companies advance steadily. Suggestions for attention: Dashenlin Pharmaceutical Group Co.Ltd(603233) ( Dashenlin Pharmaceutical Group Co.Ltd(603233) ), Yifeng Pharmacy Chain Co.Ltd(603939) ( Yifeng Pharmacy Chain Co.Ltd(603939) ), Lbx Pharmacy Chain Joint Stock Company(603883) ( Lbx Pharmacy Chain Joint Stock Company(603883) )
Pharmaceutical circulation: in 2021, the total operating revenue increased by 10.9%, and the total net profit deducted from non attributable parent decreased by 2.5%; In 2022q1, the total operating revenue increased by 6.51%, and the total net profit deducted increased by 9.83%. The two vote system will further enhance the industry concentration. Under the background of pharmaceutical separation policy, distributors are facing the opportunity of transformation to hospital comprehensive service providers. It is suggested to pay attention to: Jointown Pharmaceutical Group Co.Ltd(600998) ( Jointown Pharmaceutical Group Co.Ltd(600998) ), Shanghai Pharmaceuticals Holding Co.Ltd(601607) ( Shanghai Pharmaceuticals Holding Co.Ltd(601607) ).
Conclusion: as the number of outpatient and inpatient services in hospitals gradually returned to the pre epidemic level, the differentiation of chemical agents accelerated in the first quarter of 2022, CXO continued its rapid growth trend, and the profitability of API gradually recovered. The traditional Chinese medicine industry is entering a new stage of development encouraged by policies, the performance of biological products ushered in an outbreak period, and the fields of diagnostic services and IVD continued to benefit from the continuous and high growth of covid-19 virus detection, The overall performance of medical services rebounded rapidly.
Risk warning: the risk of repeated covid-19 epidemic, the risk of exceeding the expected price reduction of drugs and consumables, and the implementation of medical reform policy is lower than the expected risk.
