The company released its results for the third quarter of 2021. The company's 21Q1-3 realized revenue of 621 million yuan, an increase of 25.85% over the same period last year; a net profit of 79 million yuan, an increase of 8.93% over the same period last year; a gross profit margin of 28.62% for Q1-3 in 2021, a decrease of 4.88pct over the same period last year; and a net profit rate of 13.13%, a decrease of 1.99pct over the same period last year.
In terms of Q3 alone, the company achieved revenue of 192 million yuan, an increase of 14.94% over the same period last year; net profit of 20 million yuan, down 19.74% from the same period last year; gross profit margin of 2021Q3 decreased by 26.76%, 6.43pct year-on-year; and net profit rate decreased by 11.01%, reducing 4.75pct over the same period last year.
The cost side of 2021Q1-3 is improved compared with the same period last year. The company's 2021Q1-3 sales expense rate, management expense rate and financial expense rate are 4.21%, 6.77% and 0.44% respectively, compared with-2.38pct,-0.68pct and-1.7pct.
The profit end of the rising price of raw materials is under pressure. 2021Q1-3 raw material prices rose, the company's operating costs increased greatly, in which the company's main shareholding company Shanghai Jiucheng due to the rising price of raw materials and other factors, the net profit decreased more. In addition, the company promoted the new project and the subsidiary Qingyi in Suzhou was relocated, which led to the increase of current expenses.
The advantage of customer barrier is obvious, and we have established a cooperative relationship with 80% of China's top 100 pharmaceutical companies. At present, the company has more than 2000 customers, such as AstraZeneca PLC, Novartis AG, Huahai Pharmaceutical and Yangzijiang Pharmaceutical, and has established cooperative relations with 80% of China's top 100 pharmaceutical enterprises. The company continues to tap the potential of existing customers to enhance single product increment and multi-category import. In addition, under the current "related review" system, domestic pharmaceutical companies need to do computer test, compatibility and stability test, on-site audit, report to provincial drug administration or drug examination center for examination and approval, etc., and the certification time is about 9-12 months. the evaluation cycle is long, the evaluation cost is high, the cost of changing suppliers is high, and there are high customer barriers.
As of 21H1 issued 355 authorization letters, the market share may further increase. The company 21H1 issued 355 authorization letters to downstream pharmaceutical companies for conformance evaluation or new drug development declaration, storing a large number of projects. In the past three and a half years, the company has issued more than 3000 authorization letters for customer consistency evaluation or new drug declaration. As of June 30, 2021, the company has 115 drug package registration numbers issued by the National Drug Review Center and 11 DMF record numbers issued by FDA in the United States, which is the most complete range of solid drug packaging companies in China. In addition, correlation review promotes the improvement of pharmaceutical packaging quality requirements, and the improvement of industry concentration is expected to accelerate. The company uses the existing core technology to expand the field of new consumption and new energy, and develops lithium, aluminum and plastic film, which provides a new driving force for the company's sustainable development.
Profit forecast and rating: as the leader of the medicine bag, the company takes cold stamping composite hard film products as the core, and continues to expand its application scenarios in new consumption, new energy, electronic protection and other emerging fields. The founder and core team of the company have a professional degree background and have been focused on the field of pharmaceutical high barrier packaging for 20 years with rich experience in the industry. Due to the large increase in raw material prices, the company's operating costs have increased significantly, and the company's profit forecast has been lowered. We estimate that the company's 2023 net profit will be about 1.2x1.6 billion (the previous value is 1.5x1.9), and the corresponding PE will be 28x20x15X, maintaining the "buy" rating.
Risk tips: fund-raising projects do not meet expectations after production expansion, industry policy adjustment, and the impact of the macro epidemic.
