\u3000\u Guangzhou Improve Medical Instruments Co.Ltd(300030) Cofco Biotechnology Co.Ltd(000930) 0009)
Events
On May 15, the company announced that the mRNA vaccine of covid-19 virus mutant had submitted the preind application to the State Food and drug administration, and afana Anke and the company would jointly submit the application for drug clinical trial to the State Food and drug administration.
Comments
The strategic cooperation of covid-19 mutant mRNA vaccine has made phased progress. On April 12, the company signed the strategic cooperation framework agreement with afana biology to carry out exclusive cooperation in the preclinical research, clinical research, industrialization and marketing of “covid-19 Omicron and other mutant mRNA vaccine”. At present, the project is in the preclinical research and development stage, has completed pharmacy and efficacy research, and is conducting safety evaluation experiments.
With its own capital of 40 million yuan, a new wholly-owned subsidiary was established to incubate the progress of the project. According to the cooperation agreement of the company, the company increased the capital of afana Anke with its own capital of 40 million yuan, and set up a new wholly-owned subsidiary afana Anke to realize the R & D and industrialization of the project. According to the milestones agreed in the agreement, the company will pay the capital increase to afana Anke in stages for clinical and other R & D work. After all capital increases are completed, the company will hold 40% equity of afana Anke.
The main product growth hormone has a large market space, and the leading position of the company’s powder injection continues to be consolidated. In the first quarter, the company’s growth hormone business still achieved excellent performance growth under the influence of the epidemic. At the same time, the new production capacity of 20 million injections of human growth hormone in the North District was approved and officially approved for production, which will effectively solve the bottleneck of existing production capacity and continue to consolidate the leading position of the company’s powder injection. If the subsequent mRNA variant covid-19 vaccine research and development makes positive progress, it is expected to enrich the company’s new business layout in the field of biological products and cultivate new growth points.
Profit adjustment and investment suggestions
We maintain the profit expectation and expect the company to realize the net profit attributable to the parent company of 6.69 (+ 224%), 8.62 (+ 29%) and 1.083 billion yuan (+ 26%) from 2022 to 2024 respectively.
From 2022 to 2024, the company’s EPS is 0.41, 0.53 and 0.66 yuan respectively, and the corresponding PE is 24, 19 and 15 times respectively. Maintain the “buy” rating.
Risk tips
The expansion and market promotion of new growth hormone patients did not meet expectations; Intensified market competition; R & D progress is less than expected; Policy risk; Goodwill impairment risk, etc.
