Incident: The company released its 2021 performance forecast. The net profit attributable to shareholders of listed companies is expected to be 70 million yuan to 79 million yuan, an increase of 50%-70% over the same period of the previous year; net profit after deducting non-recurring profit and loss was 47.8 million yuan to 56.8 million yuan, an increase of 40% - 66% over the same period last year.
Benvermode is negotiating prices for health insurance, and sales are expected to increase significantly. Benvermode cream successfully entered the national Class B medical insurance catalogue. Medical insurance and new prices were implemented on March 1, 2021. The new price drop reached 72%. After the price dropped, the price ratio became prominent. There are 6.5 million psoriatic patients in China, and the population base is large. After the price was reduced, each bottle was 138 yuan. The audience increased dramatically. The sales volume is expected to increase significantly year-on-year in 2021.
Actively expand the variety of agents to promote revenue growth. Using the company's original sales channel resources and expanding the agency category, sales revenue of Shenwai agency products increased 50% over the same period last year, driving the company's overall performance growth. After optimizing the product structure, the company's overall gross margin increased by 3% over the same period last year.
The biomaterials and ophthalmology sectors are expected to be healthy overall. Ophthalmology-related products have basically been collected in all provinces of the country, and pleura in biomaterials has been collected in some provinces. The company has responded positively to collection while further strengthening its cost control efforts. The overall performance of these two sectors is expected to be steady.
Maintain a “buy” rating. The company's net profit for 2021-2023 is estimated to be 0.7/0.9/110 million yuan respectively, EPS is 0.28/0.35/0.41 yuan respectively, and the corresponding PE is 67X/54X/45X. The company's various sectors are growing steadily, and Benvermode's coverage is expected to increase dramatically after entering health insurance. Maintain a “buy” rating.
Risk warning: The risk that Benvimode will fall short of expectations, that the purchase of consumables will not win the bid or that the price reduction exceeds expectations, and the risk of R&D failure.