Events:
Recently, the company issued an annual results announcement for 2021, with operating income of 3.316 billion yuan in 2021, an increase of 33.08% over the same period last year, net profit of 417 million yuan, down 12.01% from the same period last year, and EBIT of about 441 million yuan. The investment in R & D is about 868 million yuan (+ 19.0%), accounting for 26.4% of the total revenue.
Comments:
Create an one-stop platform for innovative medical beauty
The company's medical and beauty business plate Yan Yan Space is growing rapidly, with a business income of 399 million yuan (+ 1383.3%) in 2021, thanks to the exclusive agent type A botulinum toxin Letybo 100U (Letibao) listed on the market, covering 2500 medical and cosmetic institutions, with a head organization coverage rate of more than 86%. Self-research, Becton Dickinson & Co, M & A three major plate layout, the completion of two domestic production bases, an area of about 14000 square meters, planning 9 production lines, complete production lines. In 2021, Tong Yan Shui Ning was approved to be listed on the market in September. 20 II products, including medical skin care / repair gel, recombinant III collagen gel dressing, 4 medical skin care dressing products, 3 scar repair products and 8 gynecological dressing products, obtained the medical device registration certificate issued by the Drug Administration.
International aesthetic giant Allergan
The company first signed an exclusive agency agreement with Korea Oriental Medical Co., Ltd. to lay out the implant products, then wholly acquired the entire equity of the American medical product manufacturer Genesis, introduced the fat collection system Lipivage and laid out the microchannel system. In January 2022, the company and Blue Crystal microorganisms established JV to develop PHA microspheres and regenerative medicine materials, and laid out the blue ocean market of synthetic biology. In the field of optoelectronic equipment, the company has become the exclusive domestic agent of SYLFIRM XTM gold microneedles. Recently, we have reached an agency agreement with Suisselle in Switzerland on CELLBOOSTER, obtaining the exclusive agency in China to expand a new generation of water light needle products.
The innovative drug plate continues to make efforts to create a leading enterprise in the field of cancer and diabetes to achieve a business income of about 294 million yuan (+ 23%) in 2021. Xuanzhu Biology, a subsidiary, has more than 25 products under research, and the pipeline focuses on many fields such as oncology, metabolism, anti-infection and digestion, among which the only independently developed PPI inhibitor-Annalprazole sodium NDA is accepted. In addition, the company continues to strengthen Becton Dickinson & Co's business development and cooperates with HB Therapeutics Company of the United States to develop a protein degradation platform to develop new molecular glue pipeline drugs for three potential FIC non-patent drug targets. Cooperate with Canadian Signal Chem company to obtain the domestic exclusive right of SLC-391, a highly selective AXL inhibitor. In terms of financing, Xuanzhu Bio received more than 600 million yuan B round financing in December. Research and development of Huisheng biological products is progressing smoothly, a number of products: innovative drugs gazepine, asparagus insulin / 30max 50 injection have been accepted by NDA, IND has been approved, de Gu insulin clinical III phase lock, rilarutide for obesity indications will also enter the third phase of clinical phase.
Incubate diversified business and improve industrial layout
In 2021, the company's generic drug business achieved an operating income of 2.598 billion yuan (+ 18.2%), and the core variety Klinao clinical research was approved for new indications. Four specifications of non-PVC powder double-chamber bags for high-tech barrier products have also been approved to be put on the market soon. High-end raw material medicine plate, the company creates CDMO/CMO platform, realizes the project sequence 180 + items, customer 40 + home. Its Aokang Pharmaceutical Co., Ltd. has established a northern industrial marijuana research and marketing center.
Profit forecast and investment rating: we expect the sales revenue and net profit of the medical and beauty business to grow rapidly, and the non-key monitoring catalogue products will be affected by the policy, so the forecast for the next 3 years will be adjusted accordingly. It is estimated that the company's operating income from 2022 to 2024 will be RMB 39.25 million, 47340.575 billion (before 2022 / 2023, 55.41 million, respectively, 8.378 billion), and the adjusted net profit will be RMB 7.30, 10.88 / 1.35 billion (RMB 1.191 million, respectively, before 2023), maintaining the buy rating.
Risk tips: product sales are not as expected, with volume procurement did not win the bid risk, market volatility risk.