\u3000\u3000 Shandong Wit Dyne Health Co.Ltd(000915) (000915)
Event: the company released the performance express for 2021, and the revenue and net profit attributable to the parent company were RMB 2.034 billion and RMB 381 million respectively, with a year-on-year increase of 11.69% and 30.98%. In 2021, the core subsidiary Dayin pharmaceutical achieved revenue and net profit of RMB 1.484 billion and RMB 663 million respectively, with a year-on-year increase of 32.02% and 32.61%.
Comments:
At the end of the year, the goods control and incentive expenses affect the single quarter performance, and the collection of terminal movable sales is in good condition. The company's revenue and net profit attributable to the parent company in the fourth quarter were + 1.61% and - 1.79% year-on-year respectively. The slowdown is estimated to be related to the stripping of environmental protection assets, new product investment and channel control of dyne pharmaceutical, while the core subsidiary dyne pharmaceutical had strong growth and excellent performance throughout the year. In 2021h1 and H2, the revenue of dyne pharmaceutical was 749 million and 735 million respectively, and the net profit was 392 million and 271 million respectively. The net interest rate of dyne pharmaceutical in the second half of the year was 35.54%, which was significantly lower than 53.68% in the first half of the year. It is estimated that it is related to the control of goods by yikexin channel, the increase of investment in new product promotion and the provision of medium and long-term incentive expenses. According to the records of the company's investor relations activities, the company has controlled the goods since November last year. On January 1, the price of 50 and 60 ikxin was raised slightly. At present, the goods collection and payment collection through channels are in good condition.
Channel expansion and category marketing contribute to the growth momentum, and idxin is expected to become the next billion level single product. The company has been developing the market for many years, and has formed a strong brand force. In recent years, the company has paid attention to the development and operation of online channels, and has continuously increased the penetration of products by means of the new media, such as the mother tiktok website, the jitter, and the little red book. According to interactive easy disclosure, dyne pharmaceutical and Ali health pharmacy signed a strategic cooperation agreement on November 25, 2021, with a Gmv target of 150 million in 2022. In 2022, the company is expected to conduct in-depth cooperation with more platforms. In 2022, the company launched a new strategy, and ikxin was promoted from 0-3 years old to 6 years old. With the company's past experience in academic promotion and category education, we expect that the ceiling of ikxin's industry will be further opened. The company is optimistic about the new development prospect of Iraqi D and is expected to become the next billion level single product.
The medium and long-term incentive plan and the three-year term of core executives have started a new journey of development. In 2021, dyne pharmaceutical was listed as a pilot enterprise for medium and long-term incentive of provincial state-owned investment non listed companies, and has launched a cash incentive plan for excess profits internally. The actual performance evaluation period is 2021-2025. The listed company employs Ms. Yang Jie as a professional manager and serves as the general manager of the company for a term of three years until the end of 2024. As the core executive of dyne pharmaceutical and listed companies, President Yang is familiar with the R & D, production, marketing and brand management of children's drugs, and will lead the company to a new journey of rapid growth. At the end of November 2021, the listed company has stripped 51% of the original equity of environmental protection business, and will continue to focus on the main pharmaceutical industry in the future. The above initiatives will stimulate the vitality of the enterprise and ensure the steady and sustainable growth of the main business.
Profit forecast, valuation and rating: Shandong Wit Dyne Health Co.Ltd(000915) as a leading enterprise of children's medicine, with the advantages of brand and channel, the core large single products have grown steadily, the expansion of channels and new products has accelerated, and the governance structure has been continuously improved. Considering the increased investment in new products and the provision of incentive expenses, the net profit from 2021 to 2023 was reduced to 381 / 495 / 605 million (compared with the previous forecast of - 7.3% / - 3.5% / - 5.0%), with a year-on-year increase of 31.11% / 29.73% / 22.40%. The corresponding PE of the current stock price is 21 / 16 / 13 times, maintaining the "buy" rating.
Risk warning: ikxin's sales did not meet expectations; Intensified market competition; Risk of new drug R & D failure
