The company released the annual report of 2021 and the quarterly report of 2022: the annual operating income in 2021 was 570 million yuan, the net profit returned to the mother was 150 million yuan, and the non-return net profit was 130 million yuan, up 39.4%, 67.8% and 54.7% respectively over the same period last year. In the first quarter of 2022, the operating income was 210 million yuan, the net profit was 70 million yuan, and the non-return net profit was 70 million yuan, up 42.5%, 61.2% and 63.5% respectively over the same period last year.
The profit side keeps growing faster than the income side, and competitiveness brings high profitability: the company maintains a high profit level. The gross profit margin of 19-1Q22 is 51.8%, 56.4%, 54.8% and 55.6%, respectively, and the net profit rate is 18.3%, 21.2%, 25.6% and 34.5%, respectively. With the expansion of the size of the company and the improvement of operating efficiency, the cost rate has also decreased. The 19-1Q22 management expense rate (excluding R & D expenses) is 15.9%, 13.9%, 13.0% and 6.8% respectively, and the sales expense rate is 2.9%, 1.7%, 1.3% and 0.7%, respectively.
CRO/CDMO/CMO: the performance is growing rapidly, with revenue of 280 million yuan in 2021, an increase of 88.2% over the same period last year, accounting for 48.7% of the company's total revenue.
The company continues to increase investment in CRO/CDMO/CMO, build a research and analysis team of nearly 200 people, and employ a number of large multinational corporations and senior talents from internationally known CRO/CDMO/CMO enterprises, so as to continuously enhance the core competitiveness of the company.
The company's project undertaking capacity continues to improve. In 2021, there are 25 CRO/CDMO projects and 2 CMO projects (including 7 API projects and 20 advanced intermediate projects) distributed in different stages (including 21 clinical projects and 6 commercial projects).
Characteristic API and intermediate: the combination of product diversification and production capacity is about to break through the bottleneck and realize the integrated upgrade of "intermediate + characteristic API + preparation".
The company's main products remain in the forefront of the international market share, including bicyclol, entecavir, citafloxacin, posaconazole, non-busitar, nebiprolol, miglitol, etc., and have completed the research and development of many series of raw materials and intermediates. A number of products are under research.
Subject to the constraints of production capacity, the company still has a number of excellent varieties with mature technology and strong profitability that can not achieve large-scale production. The company expands its production capacity to better meet the needs of customers: one workshop in the existing plant has completed equipment installation and put into production; non-public offering investment projects have a total of 7 workshops, of which 3 have entered the equipment installation stage, 1 has entered the pre-trial production preparation stage, and 3 have completed most of the plant construction and equipment installation, and the capacity construction has been carried out normally as planned.
Preparation business: imitation drugs are promoted in an orderly manner, and the future harvest can be expected.
Generic drugs: the company constructs the integrated mode of "intermediates + characteristic APIs + preparations", develops characteristic preparations, and declares at home and abroad at the same time, so as to realize the synchronous development of domestic and foreign markets. The company has in-depth cooperation with STADA and is expected to expand its capacity in the future.
Innovative drugs: 1.1 new drugs Brozopina raw materials and preparations have been declared. At present, the clinical progress of the new drug II is smooth, and patients have been enrolled in the group.
Energy production side: Zhejiang Qizheng Pharmaceutical Co., Ltd., a wholly owned subsidiary, has invested in a new "high-end preparation internationalization project". The main products of this project are high-activity targeted antineoplastic tablets / capsules and ordinary oral solid tablets / capsules. At present, the first phase of the project active preparation workshop 12654m2, oral solid preparation workshop 16809m2 have completed the plant construction and equipment installation, and have entered the stage of preparation for trial production. Will further enhance the company's competitiveness in the field of preparations.
The company recently issued a pre-plan for the issuance of non-public shares to help the development of the company. The number of non-public offering shares shall not exceed 10% of the total share capital before the issue, and the amount raised shall not exceed 500 million yuan, which is mainly used for the internationalization of high-end preparations (phase I) and the industrialization of APIs and key pharmaceutical intermediates (phase II).
If the plan is approved, it will further promote the rapid development of the company.
Profit forecast and investment advice: the company's technology-led development, API intermediates, CDMO, preparation multi-dimensional development, we expect 2022-2024 home net profit of 2.281,324,454 million yuan, corresponding to PE83/59/42 X, maintain the "highly recommended-A" rating.
Risk tips: capacity construction is not as expected, policy changes, exchange rate fluctuations, production and other risks.