Transforming into an innovative pharmaceutical company
The company was founded in 1992 and landed on the GEM board of the Shenzhen Stock Exchange in 2017. The company is an enterprise whose main business is R&D, production and sales of biological products, thrombin and other chemicals, with the national first-class drug Jinlujie - injectable rat nerve growth factor as the leading product. Adhering to the corporate purpose of “fearing life, fearless innovation”, the company implements the corporate values of “honesty, gratitude, professionalism and enterprising”, and strives to build Hyte Biotech into the best innovative pharmaceutical company in China.
The new CPT drug is in clinical phase III and is expected to be marketed and sold in 2021 as soon as possible
The injectable recombinant modified human tumor necrosis factor-related apoptosis inducing ligand (Circular PermutedTrail), CPT for short, is mainly used in the treatment of hematologic tumors such as multiple myeloma and solid malignant tumors such as gastric cancer, colon cancer, and breast cancer. It is a new genetically engineered anti-tumor drug targeted at targeting genetic engineering.
CPT is a national first-class drug developed by Beijing Shadong. It is currently in the middle stage of clinical phase III trials. In January 2019, the National Cancer Center released the latest national cancer statistics. Malignant cancer deaths accounted for 23.91% of all deaths and showed a continuous upward trend. The country's annual medical expenses for malignant tumors exceeded 220 billion yuan, the incidence of malignant tumors maintained an annual growth rate of 3.9%, the death rate maintained an annual growth rate of 3.9%, and the market space for antineoplastic drugs was huge.
Profit forecasts and investment advice
We forecast the company's revenue in 2019-2021 to be 650 million yuan, 715 million yuan and 786 million yuan respectively; the net profit of the mother is 105 million yuan, 113 million yuan and 137 million yuan respectively; the corresponding earnings per share are 102 yuan, 1.09 yuan and 133 yuan respectively; the current stock price corresponding to PE is 28 times, 26 times and 22 times respectively. We covered the company for the first time and gave it a neutral rating.
Risk warning
1. Pharmaceutical industry policy risks; 2. M&A integration risks; 3. Risk of drug safety incidents; 4. New drug development risks, etc.