Event: the company released the 2022 mid-term report. During the reporting period, the company achieved revenue of 801 million yuan, year-on-year + 50.31%, return to the mother net profit of 297 million yuan, year-on-year-6.99%, equivalent to 0.55 yuan per share of EPS, weighted average ROE 12.41%, of which Q2 achieved revenue of 414 million yuan in a single quarter, year-on-year-40.15%, month-on-quarter + 9.52% The return net profit is 146 million yuan,-35.95% compared with the same period last year, and-3.31% compared with the previous year. The company's reported performance is in line with market expectations.
The company's traditional VD3 business has strong profit stability, and the company's first-half performance is in line with expectations. In the first half of the year, the company's gross profit margin was 69.40%, and the net profit rate was 37.10%, of which the gross profit margin in the second quarter was 66.57%, the net profit rate was 35.24%, and the ROE in a single quarter was 5.96%, which was slightly lower than that in Q1, which is expected to be caused by VD3 price fluctuations (the average VD3 price in the second quarter was 8.05 million yuan per ton, down 12.21% from the first quarter). The net operating cash flow of 2022H1 was 323 million yuan, an increase of 197 million yuan over the same period last year, mainly due to the increase in operating income and profits and the increase in sales payments received. Projects under construction totaled 1.48 billion yuan, an increase of 41.63% over the same period last year, mainly due to the increase in the construction of Jinxi Science and Technology Park. The R & D expenses were 30 million yuan, + 76.47% compared with the same period last year, and the sales expenses were 170 million yuan, an increase of 583.93% over the same period last year. This is mainly due to the substantial increase in the operating income of Garden Pharmaceutical Industry in this period and the corresponding increase in marketing expenses.
Change from a single vitamin variety to a comprehensive vitamin supplier. The company's vitamin business is only VD3, in the future the company will expand multi-vitamin, including VA, VE, VB6, biotin and other products, the overall competitiveness will be greatly improved than before. The current price of traditional business vitamin D3 is 63000 / ton, which is 5% of the historical price quantile, and the downward space is very small. at this price, the company can still rely on the advantage of integration to maintain better profits than other enterprises. in addition, with the relocation of Jinxi Science and Technology Park, the company has expanded the high value-added food-grade VD3 production capacity of 540t on the basis of the original 3000 tons of feed-grade VD3, and the profitability of VD3 business has been further improved.
Attach importance to the performance improvement brought about by the commissioning of high value-added 25-hydroxy VD3. The company's upcoming blockbuster product, 25-hydroxy VD3, has high technical barriers and large added value, which is mainly used for feed addition downstream. Due to the low addition amount and a better titer ratio than VD3, the downstream acceptance is high. The production capacity of the company's 25-hydroxy VD3 has been expanded from 100t to 1200 t, and it has the conditions for trial production. Due to the high heat from July to August, which is the routine maintenance period for chemical enterprises, the company will choose the time to carry out trial production, and the company's profit will be greatly increased after it is put into production.
Layout of fully active VD3, a strong competitor in the osteoporosis drug market in the future. The domestic market for osteoporosis drugs is 30 billion yuan, of which active VD3 osteoporotic drugs are difficult to develop. At present, the market is mainly occupied by Roche, Zhengda Tianqing and other companies. The company's full-active VD3 raw material drugs have successfully developed calcitriol, alfa ossification alcohol, aldicalcidol and Marsha ossification alcohol and other products. Due to the great difficulty in raw material research and development, there are no enterprises in the world for mass production. The company plans to issue convertible bond project layout of ossifying alcohol API and its preparation products, relying on its own raw material drug industry chain and garden pharmaceutical preparation advantages, the company is expected to become a strong competitor in the field of osteoporosis medicine in the future.
Profit forecast and investment advice. We expect the company's net profit from 2022 to 2024 to be RMB 5.83 million, equivalent to EPS of 1.06,1.37 and 1.83 yuan, respectively, and the current share price is estimated to be 10.3 times the valuation of PE, maintaining the "buy" investment rating.
Risk tips: new project production schedule is not as expected, product prices fluctuate sharply, downstream demand growth slows sharply, environmental protection and production safety risks.
