Events:
On October 19th, Watt Dain released the third quarter report of 2022, during the reporting period, the company achieved operating income of 1.819 billion yuan, an increase of 15.67% over the same period last year. The net profit belonging to shareholders of listed companies was 462 million yuan, an increase of 45.10% over the same period last year. Among them, Dain Pharmaceutical, a subsidiary, achieved operating income of 1.605 billion yuan and net profit of 831 million yuan, up 40.47% and 48.52% respectively over the same period last year. In the third quarter, it achieved operating income of 526 million yuan and net profit of 283 million yuan, up 33.58% and 68.83% respectively over the same period last year.
Comments:
Yike new sales revenue growth, multi-channel coverage of the vitamin AD supplement market. Dain Pharmaceutical Co., Ltd. has persisted in professional authoritative academic promotion and category education for many years. The market penetration and market share of "Yikexin" vitamin AD products of Dain Pharmaceutical Company have been increasing continuously, and sales have continued to grow. At the same time, enrich and improve product supply channels, the combination of online and offline sales to meet consumer demand. In addition, according to the evidence of evidence-based medicine, the age of using ikexin vitamin AD will be extended from 0-3 years old to 0-6 years old from January 2022, and the market space will be further expanded. With the enhancement of immunity awareness, the market size will be further expanded in the future.
Attach importance to brand building and strengthen the marketing system to promote the market. According to the evidence of evidence-based medicine, Dain Pharmaceutical Co., Ltd. meets the needs of children's healthy consumption, continues to adhere to the core marketing strategy, adhere to professional and authoritative academic promotion, and adhere to professional category education. Dain Pharmaceutical insists on systematic and omni-directional brand building and builds its brand image through new media and other channels.
Speed up the research and development of new varieties and take root in the field of child health. With the combination of clinical needs and its own strategy, Dain Pharmaceutical Co., Ltd. adheres to the concept of "tailor-made children's drugs", strengthens the research and development of children's drugs, constantly enriches the company's product range, and new products bring incremental income. At present, Dain Pharmaceutical has formed children's drugs led by Yikexin, including Yidxin, Yijiaxin, Gaidixin, Yiganxin, Shu Tongxin, Yizhiyou, Xiaoer ibuprofen suppository, oral rehydration salt powder and desloratadine oral liquid and other children's drugs.
Profit forecast: the company is developing well and is expected to be in good business condition in 2022. From 2022 to 2024, the company is expected to achieve an income of 24.50 yuan, 29.41 yuan, 3.53 billion yuan, corresponding to a growth rate of 20.85 percent, 20.05 percent, 20.03 percent, and 2.56 pounds per share, 3.06 yuan per share, which is rated as "overweight" investment.
Risk tips: sales below expectations, policy risks