The performance shows a growing trend and continues to improve.
As of June 30, 2022, the company's turnover was 4.448 billion yuan, an increase of 15.7% over the same period last year, and the profit during the period was 1.796 billion yuan, an increase of 10.1% over the same period last year. During the reporting period, the revenue of the company's main product lines increased rapidly, of which the revenue of skin line products increased by 11.4% to 147 million yuan compared with the same period last year, and that of cardio-cerebrovascular line, which accounted for the largest proportion of income, increased by 19.7% to 2.141 billion yuan. The income growth levels of ophthalmology line and digestive line products were 14.2% and 17.4% respectively.
The company is actively expanding innovative pipelines, and a number of major products will be listed one after another:
1) Diazepam nasal spray: it may become the first innovative drug for epilepsy patients aged 6 and above in China, its Chinese bridging trial has achieved the expected goal, and NDA in China is under CDE review. 2) tirizumab injection: it is suitable for moderate and severe plaque psoriasis. The results of bridge test in China are positive. It has been approved to be listed in Hong Kong, China in April 2022, and China NDA is under CDE review. 3) Methotrexate injection: the indications are RA and psoriasis, which can be administered subcutaneously. The application for listing license for psoriasis indications in China will be given priority in January 2022. Dai Lixin entered collection in 2022, while Boyding and Yousifu may enter collection in 2023. However, in view of the fact that the company will soon have new products on the market, the company's products on sale have a high brand power and the company's strong OTC channel, the company's performance is expected to maintain double-digit growth.
Internationalize business development and focus on building a "bridgehead" in Southeast Asia:
The company will focus on the huge demand for drugs in the Southeast Asian market, taking Singapore as the management center, radiating Indonesia, the Philippines, Vietnam and other ASEAN countries to enter the Southeast Asian market in an all-round way.
It is proposed to set up a business organization structure based on product development and production, preparation CDMO and marketing promotion.
The R & D model is diversified, and the skin medical and beauty business is beginning to take shape:
"Carnation" platform of "Kangzhe Beauty" has been arranged into three series of products, namely, FUBA focused ultrasound fat reducer, LITU focused ultrasound skin therapy apparatus and MEBA ultrasound guide series. In addition, Kangzhe Beauty made an equity investment in he Zero Pharmaceutical (Guangzhou) Co., Ltd. and acquired a 60% stake.
Maintain the buy rating with a target price of HK $17.52:
The management of the company has more than 30 years of experience in the pharmaceutical industry, based on innovative drugs, to expand medical beauty and great health. We estimate that the company's EPS from 2022 to 2024 will be 1.37,1.51,1.67 respectively. We will give the company a target price of HK $17.52, corresponding to an PE of 11.0 times in 2022, which is 50.55% higher than the current price and has a "buy" rating.