Key points of investment
This Thursday (March 23), a company listed on the Main Board “Hysen Pharmaceutical” asked for a quote.
Hysen Pharmaceutical (001367): The company is a high-tech enterprise engaged in R&D, production and sales of chemical raw materials and intermediates. The company achieved revenue of 285 million yuan/389 million yuan/423 million yuan/423 million yuan respectively in 2020 and 2022, YOY was 6.74%/36.58%/8.69% in that order, and the three-year revenue compound annual growth rate was 16.58%; achieved net profit of 63 million yuan/94 million yuan/107 million yuan, YOY was -8.89%/49.62%/13.50%, and the three-year compound annual growth rate of Fumo's net profit was 15.66%. The company initially predicted net profit of 24.5-26.5 million yuan in the first quarter of 2023, an increase of 0.53%-8.74% over the previous year.
Investment highlights: 1. The company is a major domestic manufacturer of sucralfate APIs, with high product gross margin.
Sucralfate preparations are mainly used to treat stomach diseases. Currently, the main domestic suppliers of this product are Kunming Jida Pharmaceutical and Guangdong Huanan Pharmaceutical. Their sales in 2019 reached 68.53% and 26.88% respectively, with a total market share of 95.41%. The above customers are all customers of the company's sucralfate products, reflecting the strong competitiveness of the company's products in the sucralfate market. During the 2019-2022H1 reporting period, the gross margins of this product were 66.32%, 63.71%, 58.85%, and 54.73% respectively, which had a good gross margin level. 2. During the reporting period, the company's management expenses rate and R&D expenses ratio were superior to those of peers. During the 2019-2022H1 reporting period, the company's management expenses rates were 6.05%, 6.03%, 6.21%, and 5.44%, respectively, which was significantly lower than the industry average of 11.61%, 10.63%, 11.54%, and 9.30%; the R&D expenses rates were 3.53%, 3.80%, 3.10%, and 2.74%, respectively, which was significantly lower than the industry average of 6.94%, 6.82%, 7.70% and 5.92%.
Comparison of listed companies in the same industry: The company focuses on the production of chemical raw materials and intermediates; based on the similarity of the main products, Minova, Tianyu Co., Ltd., Fuxiang Pharmaceutical, Aoxiang Pharmaceutical, and Prolo Pharmaceutical were selected as comparable listed companies. Judging from the comparable companies mentioned above, the average revenue scale of the industry from the fourth quarter of 2021 to the third quarter of 2022 was 3.424 billion yuan. The comparable PE-TTM (excluding Tianyu Co., Ltd., Fuxiang Pharmaceutical/arithmetic average, which has fluctuated greatly recently) was 32.61X, and the gross sales margin was 32.86%; in comparison, the company's revenue scale was lower than the industry average, but the gross sales margin was higher than the industry average.
Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.