\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 267 Zhejiang Hisun Pharmaceutical Co.Ltd(600267) )
Zhejiang Hisun Pharmaceutical Co.Ltd(600267) on the evening of May 19, the company announced that it had signed a strategic cooperation agreement with Wangshi biotechnology. The company established production quality management documents related to products, verified analytical methods, carried out research on product scale-up test, sample production for clinical research, process verification and commercial production in accordance with relevant agreements and GMP standards, and promoted the transformation and implementation of Wangshi biotechnology achievements. The agreement is valid for 8 years; In addition, the company also signed the entrusted production agreement, and the company was entrusted with the production of vv116. The agreement is valid for 5 years.
Key points supporting rating
Vv116 has obvious first mover advantages, and the industrial chain provides development opportunities Shanghai Junshi Biosciences Co.Ltd(688180) recently released phase II clinical trial data of vv116 are bright, indicating that it can significantly improve the clinical symptoms of patients, shorten the nucleic acid turning negative time of covid-19 virus, significantly reduce the risk of progression to critical illness and death, and is effective for Delta and Omicron mutants. At present, phase II / III clinical research has been carried out in an all-round way, and is also accelerating the process of applying for listing. Vv116 preparation and its industrial chain have a relatively broad market space, providing greater business development opportunities for Chinese cdmo or API enterprises.
Zhejiang Hisun Pharmaceutical Co.Ltd(600267) financial indicators improved and fundamental inflection points appeared. Haizheng began systematic rectification in 2019, changed management and launched equity incentive scheme, actively disposed of invalid assets, and cleaned up or restructured redundant subsidiaries. The asset liability ratio decreased year by year, the operating cash flow was good, and the deduction of non net profit appeared an inflection point in 2020. In 2021, it acquired 49% equity of Hanhui pharmaceutical from Hillhouse, making it a wholly-owned subsidiary, and its profitability has been greatly improved; The preparation business of subsidiaries such as Haisheng pharmaceutical, Borui biology and Haizheng dynamic insurance maintained a relatively steady growth and made rapid progress in R & D.
Integration of APIs and preparations, active strategic layout in emerging fields. The company actively creates a gradient combination of pipeline products integrating upstream and downstream of API preparations in multiple series of treatment fields to ensure the market supply of multiple centralized products. The preparation business is flexible, the sales rhythm is controlled, and the sales still exceed expectations under the influence of centralized procurement and epidemic situation; API covers potential disease areas, with complete production capacity layout, abundant pipeline under research, and continues to increase R & D investment. In addition, the company has carried out strategic layout in emerging fields such as animal protection, special medicine, new traditional Chinese medicine and innovative medicine, actively and continuously carried out comprehensive layout and key promotion, and introduced partners to make it bigger and stronger.
Valuation
It is expected that the net profit of the company from 2022 to 2024 will be 595 million yuan, 718 million yuan and 875 million yuan, and the EPS will be 0.50 yuan, 0.60 yuan and 0.73 yuan respectively, maintaining the overweight rating.
Main risks of rating
Vv116 is approved with uncertainty risk, and the business development is less than the expected risk; Risk of policy change; Exchange rate fluctuation risk.
