What happened: the company recently released the annual report for 2021 and the quarterly report for 2022. The company achieved revenue of 1.258 billion yuan in 2021, an increase of 5.43% over the same period last year, and its net profit was 143 million yuan, down 8.62% from the same period last year. It deducted 126 million yuan from non-parent net profit, an increase of 56.46% over the same period last year. 2022Q1 achieved revenue of 500 million yuan, an increase of 47.86% over the same period last year, and a net profit of 115 million yuan, an increase of 128.94% over the same period last year, deducting 109 million yuan of non-return net profit, an increase of 142.75% over the same period last year.
Comments:
2022Q1's performance exceeded expectations and met expectations in 2021. Affected by rising prices of upstream raw materials, exchange rate fluctuations and rising freight rates, the company's API intermediate business declined in 2021, down 21.5% from the same period last year. The company promotes the integrated two-wing development strategy, and continues to accelerate the development of CDMO and preparation business. In 2021, the revenue of CDMO business reached 265 million yuan, an increase of 118.31% over the same period last year. The number of projects reached more than 200, and there were many newly signed projects. Benefiting from the preparation winning bid in Guangdong 13 provinces Collection Alliance, the company's preparation business achieved an income of 153 million yuan in 2021, an increase of 103.58% over the same period last year, maintaining more than double the growth rate. 2022Q1's API business returned to growth, CDMO and preparations maintained high-speed volume, driving the company's return net profit to achieve a growth rate of nearly 130%.
2022Q1 gross profit margin and net profit margin hit record highs. In 2021, the company's overall gross profit margin was 37.29%, year-on-year change 0.84pct, net profit rate 12.56%, year-on-year change-1.94pctjue 2022Q1 gross profit margin reached 40.49%, net profit rate reached 25.35%, all reached an all-time high. The sales expense rate, management expense rate, financial expense rate and R & D expense rate are 2.33%, 20.36%, 1.77% and 7.02% respectively, with year-on-year changes in 1.13pct, 1.96pct,-1.14pct and 1.82pct.
There are plenty of projects under research, and the expansion of production capacity brings rapid growth in performance. 2022-2024 is in the industry patent drug expiration year, the company actively layout Shaban class, Liejing class, Letine class, Dabiga group ester and other products. Preparation plate, the rapid R & D company has advantages in the variety of raw materials, actively participate in the national collection, and strengthen the advantage of the integration of API preparations. CDMO plate, the company and Merck & Co Inc signed a 10-year strategic cooperation agreement, the first batch of project cooperation is smooth, is expected to gradually contribute a large increase in 2023. In addition, taking advantage of the development of domestic innovative drugs, the company has carried out in-depth cooperation with domestic innovative pharmaceutical companies such as Jimin Trust, and actively carried out CDMO business. In 2021, Anhui Minohua has a new production capacity of 500t, with a total production capacity of 980t. Zhejiang Minohua has a new production capacity of 520t, with a total production capacity of 900t. Xuancheng Minohua has an existing production capacity of 460t, and the second phase will start the construction of a production base with a capacity of 1200 tons. Minohua Tiankang Pharmaceutical expects to increase its preparation production capacity by 3 billion tablets this year, with a total production capacity of 4.5 billion tablets.
Profit forecast and investment rating: the company is expected to achieve revenue of 19.93,27.29 and 3.461 billion yuan from 2022 to 2024, an increase of 58.4%, 36.9% and 26.8% respectively over the same period last year, and its net profit is 3.75,5.07 and 686 million yuan respectively, an increase of 163.2%, 35.2% and 35.3% over the same period last year, and the corresponding PE is 20.4,15.09 and 11.15 times respectively.
Risk factors: rising prices of raw materials, exchange rate fluctuations, and the risk of intensified competition in APIs