The company has achieved relatively rapid growth in business income. In 2021, the company's revenue was 3.291 billion yuan, + 33.6% compared with the same period last year, and the net profit was 417 million yuan,-12.0% compared with the same period last year. Among them, the medical and beauty business income is 399 million yuan (+ 1383.3%), and the operating profit is 249 million yuan (+ 971.1%), mainly because botulinum toxin Letibao is listed on the market and makes a positive contribution to the company's performance; generic drug income is 2.598 billion yuan (+ 33.6%); operating profit is 1.307 billion yuan (- 4.9%); innovative drugs and other income is 294 million yuan (+ 23.0%).
We will continue to increase investment in research and development to promote the development of innovative drugs. In 2021, R & D investment was 870 million yuan, + 19.0% compared with the same period last year, accounting for 26.4% of the company's revenue. The company speeds up the transformation of the pharmaceutical sector to BioPharma innovation, and continues to invest heavily in research and development, promoting the rapid magnification of the value of the two innovative pharmaceutical sectors. 1) Xuan bamboo biology: 25 + product pipelines for the research of macromolecules and small molecules, the most complete pipelines are arranged on the breast cancer track, and many products are in clinical III stage. 2) Huisheng biology:
The pipeline has nearly 40 full product coverage in the field of diabetes and complications. Class 1 new drug SGLT-2 gazepin has submitted a number of NDA; products to enter the clinical I-III phase, and blockbuster products will be on the market in the next three years. 3) Yan Yan Space: through self-research, mergers and acquisitions / joint ventures and cooperation, and exclusive agents, there are 40 + products on the pipeline, covering all areas of medical beauty, such as hyaluronic acid, Botox, collagen, optoelectronic equipment, buried lines and so on.
It has a net cash of RMB 4.64 billion at the end of 2021. The strong "gold absorption" ability of the pharmaceutical sector promotes the company's net cash balance to increase year by year, and the volume of the medical and beauty sector will expand this advantage.
During the year, a total of 139 million shares were repurchased and cancelled, at a total cost of HK $247 million.
The company's gross profit margin on sales increased slightly. In 2021, the company's gross profit margin on sales was 74.4%, a decline in 3.3pct compared with the previous year, mainly due to a slight decline in selling prices due to concentrated volume procurement. In terms of expenses, the administrative expenditure for the year was 608 million yuan, + 24.0% compared with the same period last year, and the distribution expenditure was 548 million yuan, + 48.45% year-on-year.
[investment advice]
The company achieves "medical plus medical beauty" two-wheel drive, medical and beauty business to achieve high growth, generic drug business as a sound "cash cow", supporting large R & D investment and promoting the continuous improvement of the value of the innovative drug sector. Learn from Erjian's development process: through self-research, mergers / acquisitions to integrate innovative medical beauty technology and products into the beauty space platform, to create an international medical beauty leading enterprise.
We estimate that the company's operating income from 2022 to 2024 will be RMB 3.840, 4461, respectively, with a net profit of RMB 5.79 million, RMB 658 million, and an EPS of RMB 0.06, 0.07 and 0.08, respectively, and the corresponding PE will be times higher than that of 25-22-18.
[risk Tip]
Uncertainty of national medical policy
Uncertainty about the progress of new drug research and development
The growth of major varieties fell short of expectations.