Performance summary: 2022 achieved revenue of 5.721 billion yuan (+ 26.98%), rich product matrix, increased sales; gross profit of 27.55% (- 2.59pcts); net profit of 921 million yuan (+ 30.43%); deduction of 907 million yuan (+ 31.15%), market competitiveness and share of major products increased, profitability enhanced. In the first quarter of 23, the revenue was 1.41 billion yuan (+ 19.9%), the gross profit was 26.61% (- 4.46pcts), the net profit was 195 million yuan (- 2.88%), and 192 million yuan (- 2.67%) was deducted from non-return.

Performance split: (1) Pharmaceutical API preparation: 22 years revenue of 1.992 billion yuan (+ 28.34%), gross profit margin of 25.51% (+ 3.13pcts), the company is one of the world's major manufacturers of macrolides and quinolones API, steadily promote cooperation with Abbott Laboratories Group clarithromycin preparation, promote CMO business (2) Pharmaceutical intermediates: the revenue in 22 years is 1.464 billion yuan (+ 14.38%), and the gross profit margin is 43.17% (+ 1.15pcts). The company leads the domestic production capacity of intermediates such as solid and liquid sodium borohydride, and the new production capacity of solid liquid sodium borohydride has entered the installation stage. (3) Animal health: 22 years to achieve revenue of 2.089 billion yuan (+ 36.25%), gross profit margin of 19.50% (- 9.99pcts), the company's extensive layout in the field of animal protection raw materials, followed by relying on pharmaceutical intermediates, extend the product industry chain, expand market position and competitiveness.

The construction of key projects for fund-raising and investment has been steadily advanced to strengthen international competitiveness. The construction of the characteristic API industry chain tetracycline, florfenicol, doxycycline, sodium borohydride and other projects progressed steadily, of which the first phase of the florfenicol project with an annual output of 4500 tons was carried out smoothly. The construction of the second phase of the project with an annual output of 1500 tons of doxycycline has entered the stage of installation and adjustment. The production bases of Shangyu in Zhejiang and Weifang in Shandong have been certified by international drug regulatory markets such as the United States, Europe and Japan, and the industrial cluster effect of the production base has appeared. The company has established a sales network covering six continents, involving more than 3000 customers in 115 countries and regions, including global well-known pharmaceutical companies, with significant global competitive advantages.

Profit forecast and rating: in 23-25, the company is expected to achieve revenue of 68.771,80.59 million yuan, an increase of 20.2%, 17.2%, 14.6%, and net profit of 10.13, 12.08, 1.409 billion yuan, up 10.0%, 19.3%, 16.6% and 13.0, 10.9, 9.4 times PE. Maintain a "buy" rating.

Risk tips: industry policy change risk, product quality control risk, raw material price change risk