Incident Overview

The company released its 2022 annual report and the first quarter report of 2023: the company achieved revenue of 783 million yuan (+19.86%) in 2022 and net profit of 175 million yuan (+45.43%) from the mother.

The company achieved revenue of 194 million yuan (+5.73%) and net profit of 52 million yuan (-3.51%) from its mother in 2023Q1.

High growth in synergistic sales of androgenic drugs

The sales revenue of the company “Aitingjiu” dapoxetine hydrochloride tablets in 2022 has exceeded 200 million yuan, and the brand advantage in the andrology field is obvious. The company's drug “Edingway”, which treats impotence (ED), went on sale in August 2022, and had a synergistic effect with Aitingou.

Self-development+introduction of benefits, abundant research pipelines

The company has sufficient research pipelines. The self-developed pipeline includes improved new drug micellar products, biosimilar drugs such as ranibizumab, and drugs for ophthalmology and chronic diseases of the elderly. In February 2023, the company acquired 50% of the shares in Jiangsu Bochuang Park. Its core product, CKBA, is a global innovative small molecule drug. Currently, only lucotinib drugs have vitiligo indications in the world, and the company will launch phase 2 clinical trials for CKBA vitiligo symptoms as soon as possible.

Investment advice

Maintain the company's profit forecast for 2023-24 and add a profit forecast for 2025: the company's revenue for 2023-2025 is estimated to be 10.12/12.83/1,545 billion yuan respectively, and the 2023-2025 EPS is 1.26/1.77/2.35 yuan respectively, corresponding to the 35.60 yuan/share price of April 26, 2023, and PE for 2023-2025 is 28/20/15 times respectively, maintaining the company's “buy” rating.

Risk warning

Risk of product promotion falling short of expectations, risk of insufficient supply of agency products