Incident: Taienkang announced its 2022 performance forecast, achieving net profit of 175 to 190 million yuan, an increase of 45.75 to 58.24% over the previous year; net profit of 164 to 179 million yuan after deducting non-return net profit of 164 to 179 million yuan, an increase of 51.88 to 65.73% over the previous year.

Q4 Profit continued its rapid growth trend, and profit growth was in line with expectations. 2022Q4 net profit of 0.47 to 062 million yuan (yoy+15 to 51%), net profit not attributable to parent is 0.44 to 59 million yuan (yoy+10 to 48%).

The high hair product dapoxetine maintained rapid growth, and the supply of gastroenterology pills gradually resumed. 1) Dapoxetine is a core self-developed generic drug. It was marketed in September 2020, with revenue of 57 million yuan in 2020, 150 million yuan in 2021, and 164 million yuan in revenue from January to September 2022 (yoy +65.87%). The generic drug tadalafil, which was launched in September 2022, is expected to contribute potential growth momentum through the same channels and with reference to dapoxetine dosage rates.

2) Gastroenterology pills are the company's classic agent product. They entered the Chinese market in 1999 and contributed stable benefits to the company over a long period of time. Revenue from January to September 2022 was 101 million yuan (yoy +26.75%). During the pandemic and the supply and logistics of gastroenterology pills from Thai pharmaceutical companies, the market supply was in short supply.

Investment suggestions: Sales of core products have increased rapidly, and performance expectations have entered a period of rapid growth. Revenue from 2022-2024 is expected to be 9/11/1.5 billion yuan, net profit of 2/3/4 billion yuan, EPS is 0.79/1.26/173 billion yuan respectively, and PE is 49/31/22 times, maintaining the “recommended” rating.

Risk warning: uncertainty about R&D progress; business risk of agency business; policy risk