Performance summary: the company achieved operating income of 320 million yuan in the first three quarters of 2020, an increase of 0.3% over the same period last year; net profit of 40 million yuan, an increase of 162.6% over the same period last year; and net profit after deducting 30 million yuan, an increase of 137.2% over the same period last year.
The revenue side is generally sound, and Benvimod continues to sell volume. 2020Q3 achieved a total operating income of 120 million yuan, an increase of 4.4% over the same period last year, and a net profit of 9.894 million yuan, an increase of 81.7% over the same period last year. Among them, the new drug Benvermede continues to release volume, with sales revenue reaching 40.084 million yuan; the biomaterial sector is expected to remain robust; ophthalmology business is expected to be dragged down by early volume procurement, but the company's products have won the bid for Beijing-Tianjin-Hebei nine-province alliance procurement, and it is expected that the volume may be released after the fourth quarter.
The gross profit margin has increased significantly and the expenses have been well controlled. In the first three quarters of 2020, the gross profit margin was 73.0%, an increase of 4.6 pp over the same period last year, which is expected to be due to the increase in the revenue share of Vermeade, which has a high gross margin. The company's sales expense rate was 38.4%, down 1.28 pp; management expense rate was 10.6%, 13.6 pp; financial expense rate was 2.9%, 1.0 ppm lower than the same period last year, and R & D expense rate was 7.6%, down 0.8pp. On the whole, the sharp reduction in company costs may be related to the company's initiative to reduce costs and increase efficiency, as well as product structure adjustment, a reduction in agency business and an increase in the proportion of new drugs.
Maintain a "buy" rating. Due to the impact of the epidemic and the impact of the company's ophthalmology business affected by volume purchases, the performance forecast was slightly lowered. It is estimated that the return net profit of the company from 2020 to 2022 is 0.8 pound 1.3 / 230 million yuan respectively, and the corresponding EPS is 0.29 pound 0.48 pound 0.85 yuan respectively. The listing of the new drug Benvimod opens the room for the company's growth, and it is expected that with the release of the drug, the company's performance is expected to usher in a stage of rapid growth. Maintain a "buy" rating.
Risk hint: the Vimod volume is lower than expected, the purchase of consumable belt fails to win the bid or the price reduction exceeds the expected risk, and the risk of R & D failure.