The company announced that in the first half of 2021, the company achieved operating income of 1,350 million yuan, an increase of 135.37%; net profit attributable to shareholders of listed companies was 319 million yuan, an increase of 419.09% over the previous year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 240 million yuan, an increase of 318.21% over the previous year; net cash outflow from operating activities was 109.31,000 yuan, compared with a net outflow of 354.462 million yuan for the same period last year; basic earnings per share of 0.2048 yuan.
Key points to support ratings
Avon C received more than 700 million US dollars in financing, and the first domestically produced mRNA vaccine is worth looking forward to. Watson Biotech's mRNA vaccine development partner Abbott announced on August 19 that after receiving 600 million yuan in Series B financing in April, the company also received more than 700 million US dollars in Series C financing. Leading investors include Temasek, Invesco, Zhengxin Valley, Goldberg, Yunfeng Fund, Lilly Asia, and Boyu Investments. Strong support from well-known investment institutions reflects the professionals' recognition of the Abbott mRNA technology platform and future development potential. At the same time, it suggests that the quality of this COVID-19 vaccine is worth looking forward to. Currently, multi-center phase III clinical trials of the vaccine have been carried out at home and abroad.
Continuing to deepen the field of mRNA, we have joined forces once again. On August 27, 2021, the company announced the signing of the “Respiratory Syncytial Virus mRNA Vaccine Product Development and Commercialization Cooperation Agreement” with Blue Magpie Biotech.
Blue Magpie Biology has been deeply involved in the field of mRNA technology for a long time. The core team comes from top research institutes such as Harvard University, Yale University, and Karolinska Medical School in Sweden. This collaboration will continue to strengthen the company's position in the domestic mRNA vaccine field and provide valuable experience for future pipeline cooperation expansion.
The recombinant COVID-19 vaccine is progressing simultaneously, and industrialization projects are on the agenda. Shanghai Zerun, a holding subsidiary of the company, plans to industrialize a vaccine production workshop No. 2 and related supporting facilities in Beijing's Watson Daxing Vaccine Industrial Park through the establishment of a subsidiary, Beijing Zerun, with a total investment of 512 million yuan. Currently, the subsidiary's recombinant COVID-19 vaccine (CHO cell) is in phase II clinical trials.
There was a marked increase in batch issuance of the 13-valent pneumonia vaccine, which became the main revenue engine. During the reporting period, the company achieved revenue of 1,350 million yuan, an increase of 135.37% over the previous year. Among them, the 13-valent pneumonia vaccine contributed 999 million yuan in revenue, an increase of 779.53% over the previous year, accounting for 73.26% of revenue, making it the most important source of revenue.
In the first half of 2021, the company approved and issued 2671409 doses of the 13-valent pneumonia vaccine, an increase of 122.40% over the previous year. In addition, the company's 2-valent HPV vaccine has entered the inspection stage at the declared production site. At the same time, the vaccine was included in the priority review list.
valuations
We maintain our previous profit forecast and forecast the company's net profit for 2021-2023 to be 1,362 billion yuan, 1,830 billion yuan, and 2,164 billion yuan respectively, maintaining the increase in holdings rating.
The main risks faced by ratings
R&D falls short of expectations, policy tightening risks, and abnormal product quality risks.