The company released its 2021 semi-annual report and achieved operating income of 1,350 million yuan in the first half of 2021, an increase of 135% over the previous year. Guimu's net profit was 319 million yuan, an increase of 419% over the previous year. Net profit after deducting non-return to the mother was $240 million, an increase of 318% over the previous year. Among them, Q2 2021 achieved revenue of 916 million yuan in a single quarter, an increase of 99% over the previous year. Guimu's net profit was 287 million yuan, an increase of 261% over the previous year. Net profit after deducting non-return to the mother was 164 million yuan, an increase of 113% over the previous year.
The volume of PCV13 sales is driving performance growth, and the internationalization process is at the forefront. The company's revenue for the first half of 2021 was 1.35 billion yuan. Among them, sales of the 13-valent pneumococcal conjugate vaccine were 999 million yuan, accounting for 73% of total revenue, an increase of 780% over the previous year. The number of 2021H1 batches issued was 2,671 million bottles, an increase of 122.4% over the previous year, accounting for 59% of the batch volume issued for the full year of 2020. Meanwhile, in April 2021, the company reached a cooperation with MarocVax Sarl in Morocco to promote overseas sales of Watson Biotech's 13-valent pneumococcal conjugate vaccine. The sales volume of the 13-valent pneumococcal conjugate vaccine in Morocco in 2021 is forecast to be 2 million doses. The process of internationalization is at the forefront.
Research and development is progressing smoothly, and there are many highlights in the pipeline. The products in the company's R&D pipeline are progressing smoothly. The conventional vaccine, 2-valent HPV, has been tested on-site and included in priority review. The 9-valent HPV vaccine is in pre-clinical preparation for phase III. MCV4 is in phase III clinical phase. The quadrivalent influenza vaccine is in phase I clinical phase.
The COVID-19 vaccine lays out 3 technical platforms. The mRNA COVID-19 vaccine is in phase III clinical stage and is expected to be the first domestically produced mRNA vaccine. The chimpanzee adenovirus vector vaccine is in phase II clinical research. The recombinant COVID-19 vaccine is in phase II clinical phase. The R&D pipeline is quite interesting.
Focus on cutting-edge technology and comprehensively lay out the mRNA technology platform. The company focuses on cutting-edge technology and comprehensively lays out mRNA and related technologies. Cooperate with Abbott Biotech to develop mRNA COVID-19 vaccine and shingles vaccine. Cooperate with Blue Magpie Biotech to develop influenza virus vaccines and respiratory syncytial virus vaccines.
At the same time, we are collaborating with Shengnuo Biotech to develop anti-influenza virus siRNA drugs. The vaccine sector targets vaccine varieties that have not been conquered or have room for improvement, and is deployed through new technology platforms.
Give a “Cautious Recommendation - A” investment rating. We predict that with the gradual release of the company's vaccine products and the gradual fulfillment of the pipeline, net profit for 2021-2023 will be 1,447 million, 1,961 million, and 2,359 million respectively. The corresponding EPS is 0.92, 1.25, and 1.51, respectively, and the PE corresponding to the current stock price is 94, 69, and 58, respectively. Give a “Cautious Recommendation - A” investment rating.
Risk warning: R&D falls short of expected risks, commercialization falls short of expected risks.
