The company's revenue dropped sharply in the first quarter of 22 compared with the previous quarter.
Results in the first quarter of 22 years: CANSINOBIO's income in the first quarter of 22 was + 7.0% to 500 million yuan compared with the same period last year, most of which was COVID-19 's vaccine income, mostly from domestic sources. (the revenue in the second to fourth quarters of 21 years is: Q2: 1.59 billion yuan, Q3: 1.02 billion yuan, Q2purl 12.10 billion yuan). In the first quarter of 2002, the company's gross profit margin was stable at 70%, the company's R & D expenses were 160 million yuan, and the R & D rate was 31.5%. Sales expenses and administrative expenses were relatively stable, but the rates increased due to a sharp decline in revenue. In the first quarter of 22, the company's homing profit was 120 million, and the net interest rate was 24.3% (the 21-year profit margin was 44.5%).
COVID-19 vaccine competition is more fierce: in February 2022, the company's recombinant adenovirus type 5 vector COVID-19 vaccine was approved in China for sequential enhanced immunization. Between April 18 and 27, the proportion of the country's sequential enhanced immunization reached 26%, which continued to increase. In March, the company received GMP certification from the World Health Organization (WHO) and is currently conducting a follow-up review process to include Kweisha ⒅ in the Emergency use list (EUL), a process that will affect the company's overseas sales of COVID-19 vaccine. The inhalation form has also been submitted for emergency use. COVID-19 's IND application for mRNA vaccine was approved in April, 2002. The competition in COVID-19 vaccine market will be more fierce in the future.
Other product developments: meningococcal vaccines: MCV2 and MCV4 were approved by FDA for new drug applications in June and December 2001. MCV4 expects to start contributing revenue in the third quarter and will be exclusive products in the next 2-3 years. Pneumococcal vaccine: PCV13i is expected to complete phase 3 trials in 22 years and be approved in 24-25 years. PBPV expects to start phase Ib/II clinical trials in 22 years. Diphtheria tetanus vaccine: infantile DTcP and DTcP enhancements (4-6 years old) are currently in phase Ⅰ, phase III is expected to be launched in 22 years, and adolescent and adult TdcP is expected to conduct clinical trials in 23 years.
A-share buyback: the company plans to buy back A-shares with a total repurchase amount of 150-300 million yuan and a repurchase price of no more than 446.78 yuan ╱ shares. The repurchase period is from January 23, 2022 to January 22, 2023. By the end of April 2022, 350000 A shares had been repurchased, at a cost of 90 million yuan.
Target price HK $98.8, buy rating: COVID-19 's vaccine income will be affected by changes in the global epidemic, immunization policy and competition in the future. Menexi and Manhaixin are still highly competitive meningococcal conjugate vaccines in China, and the 13-valent pneumococcal conjugate vaccine (PCV13i) is also competitive. In addition, its global innovative recombinant pneumococcal protein vaccine (PVPB) is still worth looking forward to. Based on the DCF valuation method (WACC:10%, sustainable growth of 3 per cent), we have a target price of HK $98.8, which is 38.7 per cent higher than the current price and rated as buy.