occurrences
The first half of 2021 achieved revenue of 32.09 million yuan, a year-on-year decrease of 63.28%, net profit of the mother was 23.31 million yuan, and net profit of the non-return mother was 25.87 million yuan. 2021Q2 achieved revenue of 2.05 million yuan in a single quarter, a year-on-year decrease of 95.57%. Net profit of the mother was 18.01 million yuan, after deducting net profit of the non-return mother was 19.23 million yuan.
The influenza vaccine performance was mainly released in the second half of the year. The company's performance for the full year can be expected to be lost in the first half of the year, mainly because influenza vaccine sales were highly seasonal. The fall and winter of September and December were the peak sales season. Most of the performance was reflected in the second half of the year. According to data from the Central Inspection Institute, Jindik was first distributed in early August 2021, and 12 batches had been approved as of August 22. Currently, the company has an annual production capacity of 10 million doses of the quadrivalent influenza vaccine. The company has accelerated the production capacity of a new 30 million doses of the annual production capacity project. The main building of the workshop was capped during the reporting period, and the mechanical and electrical installation and commissioning work of the workshop equipment continues to be steadily promoted. We expect that the new construction capacity will be released in 2023, bringing room for performance improvement. Currently, the company only packs in cilin bottles. The pre-filled filling production line purchased by the company was delivered in December 2020. We expect the company's pre-filled packaging to be marketed and sold next year, leading to an increase in performance. In addition, the company uses a three-step purification process in the preparation and production process of the quadrivalent influenza vaccine to effectively remove egg white protein impurities, small molecule impurities and large particles after lysis to improve safety and immune effects.
In January 2021, the company's freeze-dried human rabies vaccine (Vero cell) project completed phase III clinical trials. It is expected that registration applications will be submitted this year. After Mad Vaccine is marketed, it will bring new growth points to the company.
Equity incentives basically cover all employees to enhance company cohesion
The target number of equity incentives is 369 people, accounting for about 93.42% of the company's total 395 employees, which basically covers all employees; the number of restricted shares to be granted is 800,000 shares, accounting for about 0.91% of the company's total share capital, of which 14800 shares are reserved, accounting for 18.5% of the shares to be granted. The price is 55.18 yuan/share. The performance assessment target is 50%/80%/100% of operating income compared to the growth rate of 2020 (corresponding to about 884/10.60/1,178 billion yuan). In addition, a total of 9 senior management and core personnel of the company participated in the strategic placement. The shares basically covered all employees, and the company reserved a portion of the shares to be awarded, which helped strengthen employee motivation, enhance the company's cohesion, and promote long-term development.
Profit Forecasts and Investment Ratings
We believe that the influenza vaccination rate in China is currently low. The COVID-19 pandemic helps raise public awareness of vaccination, and the influenza vaccine needs to be vaccinated every year. The quadrivalent influenza vaccine has a better protective effect. The increase in the overall vaccination rate is compounded by the increase in the proportion of quadrivalent influenza. The company, as an important manufacturer of the quadrivalent influenza vaccine, is also expected to benefit. We expect the company's revenue for 2021-2023 to be 10.01/12.52/2,556 billion yuan respectively, with year-on-year increases of 69.91%/25.11%/104.14% respectively; regardless of incentive costs, The net profit of Guimu is estimated to be 305/369/772 million yuan respectively, with year-on-year increases of 97.51%/23.54%/108.32% respectively, maintaining the “buy” rating.
Risk warning: The risk that China's influenza vaccination rate falls short of expectations and that the vaccine industry is fiercely competitive