According to the 2009 annual report, the company achieved annual revenue of 194 million yuan, an increase of 8.18% over the previous year; operating profit of 23.51 million yuan, an increase of 115.63% over the previous year; net profit attributable to the parent company was 23.34 million yuan, turning a loss into a profit, an increase of 116.69% over the previous year; the diluted earnings per share were 0.02 yuan, slightly higher than our previous forecast of 0.01 yuan; the distribution plan was undistributed.
The pharmaceutical business is gradually on the right track. Beginning in 2008, the company's main business completely changed from wool spinning and biomedical pharmaceutical industries to biomedical pharmaceutical industries. 2009 was the second year of the company's transformation into the biomedical industry. The company gradually overcame the variety crisis, quality crisis, and talent crisis, worked hard to open up export channels, and turned a loss into a profit throughout the year. During the reporting period, revenue was 194 million yuan, an increase of 8.18% over the previous year, of which pharmaceutical revenue was 179 million yuan, an increase of 13.34% over the previous year; net profit attributable to the parent company was 23.34 million yuan, of which the subsidiary Beijing Sihuan Biopharmaceutical was transferred to Shenzhou Cell Engineering Co., Ltd. confirmed revenue of 12.91 million yuan.
After excluding investment income, the company's main business made a profit of 2.38 million yuan, turning a loss into a profit. The company has solved all the problems left over by wool spinning this year, and the company's main business is gradually on the right track.
The company has three main pharmaceutical products: EPO (erythropoietin), G-CSF (granulocyte colony stimulating factor), and recombinant human interleukin-2. EP O binds to cell surface receptors to promote the production, differentiation, and maturation of red progenitor cells, and is widely used to treat renal anemia. G-CSF has effects such as immunomodulation, vascular protection, promotion of angiogenesis, and anti-atherosclerosis, and is mainly used for agranulocytopenia caused by various causes. Recombinant human interleukin-2 is mainly used to treat various malignant tumors and control cancerous thoracic ascites. It can also be used for treatment after radiotherapy and chemotherapy to enhance the body's immune function. All three products have broad market prospects and are the company's pillar products. During the reporting period, interleukin products achieved revenue of 32.1 million yuan, an increase of 21.28% over the previous year, and gross margin was 83.10%, an increase of 11.18 percentage points over the previous year. EPO products achieved business revenue of 32.27 million yuan, an increase of 5594% over the previous year, and gross margin was 58.37%, an increase of 2.53 percentage points over the previous year. The company will vigorously develop export business in 2010, and the prospects are worth looking forward to.
Profit forecast: We expect the company's EPS from 2010 to 2012 to be 0.01 yuan, 0.01 yuan, 0.02 yuan. Based on the calculation of the closing price of 4.98 yuan on the 23rd, the corresponding dynamic price-earnings ratio is 772 times, 420 times, 240 times. The valuation is high. Considering the good development prospects of the company's pharmaceutical business, we gave the company a “neutral” investment rating.
Risk warning: The risk that product expansion of the market size will be blocked.