In the first half of the year, despite the disturbance of the epidemic, we achieved steady growth: revenue in the first half of 2022 was 4.448 billion yuan, an increase of 15.7 percent over the same period last year; if the turnover was calculated on the basis of drug sales revenue, it was 5.17 billion yuan, an increase of 21.1 percent over the same period last year. The profit during the period was 1.796 billion yuan, an increase of 10.1% over the same period last year. The dividend yield calculated by dividing the rolling annual dividend by the closing price on the date of the performance announcement is 5.1%. If the products on sale grew steadily in terms of drug sales revenue, the cardio-cerebrovascular line increased by 26.0% year-on-year, the digestive line increased by 17.4%, the ophthalmology line increased by 14.2%, the skin line grew by 11.4%, and other products increased by 3.2%. The overall cost side was stable, and the net interest rate decreased slightly. Calculated based on drug sales revenue, the gross profit margin was 65.3%, up 0.5 pct from the same period last year; the sales expense rate was 23.5%, up 1.6 pct from the same period last year; the administrative expense rate was 5.4%, up 1.7 pct from the same period last year; the R & D expense rate was 1.1%, up 0.2 pct from the same period last year; and the net profit rate was 34.7%, down 3.5pct.
The harvest of innovation research is expected, and the four major business sectors go hand in hand: (1) Innovation research and development: three innovative products in the first half of the year are under NDA review in China, 1
Innovative products have been approved for listing in Hong Kong, China
One innovative product, China NDA, was included in the priority review process by CDE, and the first patient administration of three innovative products in China bridging trial was completed and steadily advanced, ushering in the harvest period of innovative drugs. (2) skin medicine and beauty business: strengthen internal systematic integration, acquire 60% equity of Wo Zi Pharmaceutical in August 2022, and obtain dermatological skin care products. (3) Ophthalmology business: on July 26, 2022, we acquired all the global related assets of targeted VEGF+ANG2 for intravitreal injection from Youzhiyou Biopharmaceuticals; on August 12, 2022, we entered into a cooperation with ETC of France on EyeOP1 ultrasound glaucoma therapeutic apparatus and invested in the equity holding of ETC33.4%. (4) Great health business: the mode of "popular style brand operation" is adjusted from the previous "hypermarket" model with many products to the "popular brand operation" mode.
Open the international development strategy, take the Southeast Asian market as the starting point, and create an open platform covering product research and development, production and commercialization. In August 2022, Rxilient, a Southeast Asian business company, entered into a partnership with Tianmai Biology to obtain exclusive rights to register, market, sell and distribute insulin products in 11 Southeast Asian countries.
Profit forecast and valuation: the company's business is progressing smoothly. We adjusted the operating income forecast for 2022-2024 to 96.13,102.13 and 11.728 billion yuan respectively, an increase of 15.31%, 6.24% and 14.83% over the same period last year. The 2022-2024 homing net profit forecast is 33.62,34.83 and 3.909 billion yuan respectively, an increase of 11.40%, 3.61% and 12.24% over the same period last year, maintaining the "buy" rating.
Risk hints: the impact of collection is higher than expected, M & An integration is not as expected, the listing progress of products under research is lower than expected, and policy risk.