Events:
Wei Xinkang released the semi-annual report of 2022 on the evening of August 22, 2022: 2022H1 realized revenue of 668 million (+ 33.63%), deducted non-return net profit of 102 million (+ 95.66%), and the performance was in line with expectations; quarterly, 2022Q2 income 353 million (+ 20.82%), deducted non-return net profit 64 million (+ 89.42%).
The three core high-yield products are rapidly released, and the service income (mainly from multivitamins for injection (12)) is expected to accelerate in the second half of the year: 481 million (+ 37.81%), covering about 2000 hospitals; multiple trace element injection (40ml): 83.84 million income (+ 302%), covering more than 150 hospitals Pediatric multivitamin injection (13): achieved income of 20.47 million (+ 54.74%), covering more than 100 hospitals. It is estimated that the epidemic situation in some key areas of the country has affected the sales and promotion of this product.
From the point of view of profitability, thanks to the rapid volume and share increase of the three core high-yield varieties of listed companies, the company's gross profit margin has continued to improve. Gross profit margin rose from 50.09% in the same period last year to 51.34% in 2022, and the net profit rate rose rapidly from 10.67% in the same period last year to 15.42% in the first half of 2022. Cost side: the sales expense rate was 21.00%, which was 4.25pct lower than that of the same period last year; the management expense rate was 10.32%, an increase of 1.87pct over the same period last year, mainly due to the impact of the expansion of the company's personnel scale and equity incentive expenses; and the R & D expense rate was 3.62%, an increase of 1.18% over the same period last year, mainly due to the phased increase in the company's R & D expenditure projects.
The investment in R & D continues to increase, and the product matrix is gradually enriched.
In the first half of 2022, the company invested 24.1992 million yuan (+ 98.80%) in R & D, and the R & D investment is still increasing. In the first half of 2022, the company has more than 30 new product projects under development. Among them, Children's compound Amino Acid injection (19AA-I) obtained the drug registration certificate in May 2022. Children's compound Amino Acid injection (19AA-I) is an intravenous amino acid drug, which is a variety of national medical insurance catalogue (Class B). It is suitable for infants (including low birth weight infants) and parenteral nutrition support for children. The company is the first company of this variety to pass the consistency evaluation. In the first half of 2022, the company actively carried out bid winning / networking in various provincial administrative regions. In addition, it is expected that two more products of the company will be approved in the second half of 2022. Applications for drug registration of dopamine hydrochloride injection and multiple trace element injection (Ⅰ) will be accepted in January 2022 and June 2022 respectively, and the company's product matrix will continue to be enriched.
Investment advice and profit Forecast
The rapid release of multi-vitamins (12) for injection, multi-trace element injection and children's multi-vitamin injection (13), superimposed on the continuous enrichment of epidemic prevention and control experience and epidemic prevention toolkit in the second half of 2022, it is expected that the impact of the epidemic will be more controlled, and the company's corresponding sales and promotion work will be gradually restored and further promoted. The active promotion of access to Pediatric compound Amino Acid injection (19AA-1) is expected to begin to contribute to performance this year. It is estimated that the company's operating income from 2022 to 2024 will be 14.29%, 20.10%, 27.38 million, with a growth rate of 38.26%, 40.65%, 36.25%, 1.59, 226, 321 million, respectively, with a growth rate of 64.96%, 40.55, 40.93 and 0.72 yuan per share, respectively, and the corresponding PE is 33.90, 24.12 and 17.11, respectively. Maintain a "buy" rating.
Risk hint
Uncertainty of R & D; price reduction of core health insurance products; intensified competition in the industry; uncertainty of channel expansion, etc.
