The company's performance grew steadily in 2022, and overall was in line with expectations. The company achieved sales revenue of 9.150 billion yuan in 2022, an increase of 9.8% over the previous year; if all pharmaceutical sales revenue were calculated, the turnover increased 13.7% to 10.498 billion yuan; and achieved an annual profit of 3.276 billion yuan, an increase of 8.3% over the previous year. The total annual dividend was RMB 0.5344 per share, up 8.8% from last year, maintaining a 40% payout ratio.
Continuing to increase innovation, gradually entering a harvest period, dermatology, aesthetics and ophthalmology businesses are developing in depth. The company has successfully deployed 30 short, medium and long-term innovative products with competitive differentiation advantages, and 3 innovative products will soon be approved for listing in China. The company added 4 innovative products in 2022, 1 of which is an innovative medical device that has already been listed in China and some Southeast Asian markets; clinical development in China continues to advance, and 3 innovative products are undergoing technical review for listing applications in China. Kangzhelimei has 2 main prescription dermal products on sale and about 7 prescriptive skin products mainly under development; 6 major medical and aesthetic product lines and about 5 major medical aesthetic products. By the end of 2022, Kangzhelimei's team had over 600 people, covering nearly 10,000 hospitals and medical institutions in China. Kangzheweisheng's ophthalmology business continues to enrich its products. By the end of 2022, Kangzheweisheng's team size exceeded 300 people, covering nearly 9,000 hospitals and medical institutions in China.
Southeast Asia's business is progressing steadily, introducing high-quality products. Kanglianda Health focuses on unmet clinical needs in the Southeast Asian market and is operated independently by a professional and experienced localization team. Relying on Kangzhe Pharmaceutical's large-scale international variety resources to quickly import high-quality products from Europe, America, Japan and China, it has gradually established a competitive product portfolio.
Profit forecast and valuation: Based on the company's various business developments, taking into account the impact of collection, we adjusted the profit forecast. The estimated revenue for 2023-2025 was 94.94, 104.09, and 11.868 billion yuan respectively, up 3.75%, 9.64%, and 14.02% year-on-year; the estimated net profit of the mother was 33.53, 36.55, and 4.136 billion yuan respectively, up 2.89%, 8.99%, 13.16% year on year, maintaining the “buy” rating.
Risk warning: Risks such as the impact of collection exceeding expectations, the marketing progress of products under development falling short of expectations, overseas expansion falling short of expectations, and changes in industry policies.