Performance summary: the company achieved operating income of 630 million yuan in the first half of 2020, about + 1.6% of the same period last year, and realized net profit of 220 million yuan, about + 40% of the same period last year, and 180 million yuan of deductions, about 13% of the same period last year. In the second quarter alone, the operating income was 330 million yuan, about + 3% compared with the same period last year, and the net profit returned to the mother was 91 million yuan, about 5.5% year-on-year, and 92 million yuan after deduction, about + 6% year-on-year.
The volume of new active elements continues to be released, and Imdo's sales are growing rapidly. The new element sold 1.12 million units in the first half of the year, an increase of about 25 per cent over the same period last year, and sales revenue of 410 million yuan, down 4.9 per cent from the same period last year. This is mainly due to the implementation of new health insurance prices this year, which was reduced by about 24%. For most of the year, Im's annual sales revenue was 160 million yuan, an increase of about 36% over the same period last year. In order to meet the market demand, the company started the reconstruction and expansion of the new active element production line, which has been completed and is currently in the stage of registration verification. The company's new active element patent is valid on December 29, 2031, with high technical barriers and long-term competitiveness. The promotion fee for the new active element is reasonable, and sales are expected to maintain rapid growth with the easing of the domestic epidemic and the expansion of production capacity.
Investment in the field of cardiovascular implant devices and vaccines is conducive to long-term development. In the first half of the year, the company plans to invest 70 million yuan in Beijing Amet, with a shareholding ratio of 9.86%, and obtain the right to promote the sales of 4 vascular implant devices under research (2 clinical, 1 clinical declaration, 1 development stage) In June, the company reached a cooperation with Sri Lankan microorganisms. According to the research and development progress of COVID-19 vaccine, tuberculosis vaccine and influenza vaccine, the company invested 351 million yuan in Sri Lankan microorganisms in stages to obtain the right to sell their research products on the market. The microbial mRNA vaccine is still in the preclinical stage. Cooperation will help to increase short-term and medium-term backup products and be conducive to the long-term development of the company.
Develop the unique resources of Tibetan medicinal materials. In the first half of the year, the company's recombinant human interleukin-1 receptor antagonist (rhIL-1Ra) eye drops project launched phase IIa clinical trials, and 95% of the study cases were enrolled. The research project of artificial cultivation of Rhodiola has basically mastered the environmental conditions for the growth and development of Rhodiola, and preliminarily established the standard operating rules of artificial cultivation. Some progress has been made in the artificial cultivation of Fritillaria thunbergii, and the pilot demonstration base of artificial planting of wave melon is running normally. In the first half of the year, the construction of the company's new production base in the Economic Development District of Lhasa has been completed.
Profit forecast and investment advice. Taking into account the epidemic situation and the price reduction factors of Xinhuo, the company's profit forecast for 2020-2022 has been slightly lowered to 390 million yuan, 460 million yuan and 560 million yuan respectively, with a growth rate of about 21% in the next three years and about 25% before the adjustment. Consider the volume effect of the company's new activin into the new health insurance and the company's layout in the field of cardiovascular implants, and maintain the "buy" rating.
Risk tips: new activin sales are not as expected, Imdo sales are not as expected, COVID-19 vaccine research and development failure risk.