Under the influence of the epidemic, the business situation remained sound. In the first half of 2022, Sansheng Pharmaceutical achieved an income of 3.091 billion yuan (- 0.5%), a net profit of 955 million yuan (+ 6.2%), and a normalized net profit of 994 million yuan (+ 6.9%). Under the influence of the epidemic, the company is still sound. In terms of product research and development, the company made clear the focus and took the initiative to control R & D projects. The R & D expenditure in the first half of the year was 294 million yuan (- 14.7%), and the R & D expenditure rate dropped to 9.5% (- 1.6pp).
The sales of the core products of the biopharmaceutical plate are stable. The core product Terbiao sold 1.575 billion yuan (+ 3.5%) in the first half of the year. According to statistics, Terbiao accounts for 66.0% of China's thrombocytopenia treatment market. Phase 3 clinical trials of ITP indications for children in Tabio have reached a major end point, and the company is preparing NDA for new indications. Sales of erythropoietin in the first half of the year were 533 million yuan (- 1.9%). The decrease in sales was mainly due to the decline in ex-factory prices. Yisaipu achieved sales of 234 million yuan (- 45.5%) in the first half of the year, and the decrease in sales was mainly affected by the epidemic and increased competition.
Mandy keeps growing fast. Mandy, the company's core product in the field of hair health, achieved sales of 366 million yuan (+ 42.0%) in the first half of the year. According to the Chinese Pharmaceutical Association, Mandy accounted for 71.9% of the Chinese market in the first half of the year.
At present, Mandy's sales cover more than 2000 medical institutions in China, and have reached a strategic cooperation with Yonghe Zhifa, a hair transplant chain; at the same time, Mandy's sales channels cover nearly 90,000 retail drugstores and Internet sales platforms such as Tmall and JD.com. The application for the listing of Mendi foam form has been accepted and is expected to become the only minoxidil foam form approved to be listed in China.
CDMO business continues to develop. The revenue of Sansheng Pharmaceutical CDMO business in the first half of the year is 55 million yuan (+ 37.9%), the amount of orders signed is more than 100 million yuan, the number of projects in progress is more than 20, and the project success rate is 100%. The cooperative customers include well-known pharmaceutical companies and biotechnology companies at home and abroad, and the services cover all aspects from preclinical to commercialization of drugs.
Risk hint: bio-drug prices are reduced more than expected, CDMO business growth is lower than expected. Investment advice: maintain a "buy" rating.
Due to the epidemic and the possible impact of collective mining and price reduction, we slightly downgrade our profit forecast. It is estimated that the company's net profit for 2022-24 will be RMB 1.777 billion (RMB 2.384 billion), an increase of 6.4%, 12.0% and 13.4% over the same period last year, corresponding to the current stock price PE of 7.0max 6.25.5. The company has strong profitability, abundant cash flow, attractive valuation, hair health and CDMO business to look forward to, maintaining a "buy" rating.