Excluding the fluctuation of investment income, the company operates steadily and its performance is in line with expectations. In 2021, the company achieved an operating income of 1.77 billion yuan, + 19.22% compared with the same period last year, mainly due to the steady growth of core products such as plaster and ointment, and the rapid growth of pill products; the annual net profit was 716 million yuan, + 77.21% compared with the same period last year. It is mainly due to the impact of the substantial increase in investment income under the equity investment law, and the net profit after deducting it is 345 million yuan, + 0.64% compared with the same period last year. In the first quarter of 2022, the company achieved operating income of 408 million yuan, + 23.97% compared with the same period last year, and the core products maintained rapid growth; the net profit was 87.09 million yuan,-15.59% compared with the same period last year; after deducting non-recurrent gains and losses such as investment income, the profit was 118 million yuan, + 16.65% compared with the same period last year. Steady growth.
The company maintains R & D investment and the result of cost control is good. The company's annual R & D expenditure rate in 2021 is 4.00%. The R & D expenditure rate of 2022Q1 is 3.45%. The R & D investment maintains a high level, and continues to increase investment in the construction of an innovation and development center to ensure the driving force of development. In 2021, the company completed the phased construction of pilot production lines for oral preparations, aerosols, rubber ointments, ointments and other dosage forms, realizing the seamless connection of some new drug development to new product transformation, and long-term development is expected. 2021 the annual sales expense rate is 47.60%, and the management expense rate is 8.34%. The sales and management expense rates of 2022Q1 are 38.93% and 8.65%, respectively, which remain stable. Under the premise of the steady growth of traditional plaster products, continue to increase the marketing efforts and promotion efficiency of new products, in addition, strengthen the sales of health products, and inject new vitality into the long-term rapid growth.
Continuously promote fine management to ensure the sustainable development of the business. From 2021 to 2022, the company continues to promote and deepen the strategic layout of "one axis, two wings and three supports", and constantly strengthen the improvement of its own fine management. The company takes "strengthening analgesia" as the core, on the one hand, the company further increases urban coverage and channel sinking, while actively promoting the transformation of digital marketing to speed up the sales promotion of the third terminal; on the other hand, increase the listing intensity and efficiency of new products in different treatment fields, and constantly expand and enhance the brand influence of the company through characteristic academic, brand and cultural promotion, which has achieved remarkable results. The company strengthens organizational construction and team execution with fine management, and constantly deepens the advantages of brand, product, marketing, R & D and other advantages to ensure the sustainable development of the business.
Due to the slight increase in management fees due to the slight increase in the company's fees in 2021, we forecast 2022-2024 earnings per share of 0.93pm 1.22 yuan (the original 2022-23 forecast of 0.93max 1.05 yuan). With reference to the valuation of the comparable company, we value the company's 2022 28X price-to-earnings ratio, corresponding to the target price of 26.04 yuan, and maintain the overweight rating.
Risk hint
Patch sales are lower than expected; epidemic floods and other unnatural factors; new business development is not as expected; investment income fluctuations on the future earnings of the company and so on.
