The company released its semi-annual report for 2022, deducting non-caliber growth: operating income, net profit and net profit of 8.01,2.97 and 260 million yuan in the first half of 2022, which increased by 50.31%,-6.99% and 80.03% respectively over the same period last year after adjustment. Among them, operating income, return net profit and deduction of non-return net profit in the second quarter were 4.14,1.46 and 127 million yuan, up 15.80%,-35.95% and 68.86% respectively over the same period last year.
The high growth in revenue and deducting non-home profit is mainly due to the company's acquisition of Garden Pharmaceutical in November 2021, and according to regulations, Garden Pharmaceutical's return profit of 83.78 million yuan in the same period last year was included in non-recurrent profit and loss; the decline in the apparent growth rate of return net profit is mainly due to the 74.97 million yuan reduction in relocation income of Hangzhou Xiasha Company in non-recurrent profit and loss compared with the same period last year.
In the first half of 2022, the income of lanolin and its derivatives was 116 million yuan, + 35.01% compared with the same period last year, cholesterol, 7-dehydrocholesterol and other intermediate products were gradually released, and the income in the second quarter (65.74 million yuan) was higher than that in the first quarter (50.52 million yuan). As of the half-yearly report, the lanolin cholesterol and refined lanolin project in Jinxi Science and Technology Park has been put into trial production, and the progress of 180t 7-dehydrocholesterol under construction has reached 99%.
At present, the company has reached a long-term strategic cooperation with DSM on cholesterol (10-year agreement signed in 2015) and 7-dehydrocholesterol project (15-year agreement signed in 2022). At the same time, the release of feed-grade cholesterol has led to performance growth.
In the first half of 2022, the income of vitamin D3 and its analogues was 233 million yuan,-10.13% compared with the same period last year. The price of vitamin D3 fluctuated to the bottom, and the high value-added 25-hydroxyl VD3 is expected to expand and increase profits. The revenue in the second quarter (149 million) is much higher than that in the first quarter (86.41 million yuan). The decrease in revenue in this sector in the first half of the year is mainly due to the price fluctuation of vitamin D3, according to Boya and Hexun. The average price of VD3 (500,000 IU / g) dropped to 86.3yuan / kg in the first half of 2022 from 127.6 yuan / kg in the same period last year. At present, VD3 is located at the double bottom of inventory price and is defensive. At the same time, with the high value-added 25-hydroxy VD3 Jinxi production capacity has the conditions for trial production, it is expected to gradually expand revenue and increase profits.
The collection volume of Garden Pharmaceutical Co., Ltd. is growing rapidly: it became a wholly owned subsidiary of the company in November 2021, with revenue of 347 million yuan (year-on-year + 139%) and net profit of 148 million yuan (year-on-year + 76%) in the first half of 2022.
At present, the company's valsartan amlodipine tablets (I), doxophylline injection collection expiration, has been successfully selected in 13 provinces (autonomous regions, cities, bingtuan) drug alliance procurement continued to grow.
Investment advice and profit forecast: we are optimistic about the company through the "one vertical and one horizontal" layout, VD3 industrial chain of multi-product volume growth, join hands with DSM to share high added value, relay new capacity to expand VA, VE and other new categories, relying on Garden Pharmaceutical layout of the pharmaceutical market, to achieve profitability, profitability stability and certainty to improve, maintain the "highly recommended" rating. It is estimated that the return net profit of the company from 2022 to 2024 is 5.4 yuan 7.0 / 900 million yuan respectively, corresponding to PE19/15/12 times.
Risk hints: policy risk, competition intensification risk, epidemic risk, new production capacity less than expected risk, vitamin D3 price fluctuation risk, supply overdemand risk, R & D risk, production risk and so on.
