Events: the company released its third-quarter results report on October 27, 2020. In the first three quarters of 2020, the company achieved revenue of 1.072 billion yuan, down 17.51% from the same period last year, and realized net profit of 544800 yuan, down 99.28% from the same period last year. The net profit after deducting non-return was-27.7082 million yuan, down 152.89% from the same period last year.
Continue to divest assets that are not in line with future strategic planning and focus on the main business, and Q3 performance will continue to improve in 2020:
On the sales side, the company achieved revenue of 1.072 billion yuan in the first three quarters of 2020, down 17.51% from the same period last year.
Among them, Q3 achieved revenue of 473 million yuan in 2020, down-6.09% from the same period last year.
On the profit side, the company made a net profit of 544800 yuan in the first three quarters of 2020, down 99.28% from the same period last year. Among them, the net profit of Q3 company in 2020 was 86.483 billion yuan, down 61.01% from the same period last year. The company is currently divesting assets that do not meet future strategic plans to further focus on oncology and ophthalmology, and the performance of companies from 2020Q1 to Q3 is improving quarter by quarter.
In the first three quarters of 2020, the company's overall gross profit margin was 69.80% (+ 0.36 pct.), and the expense rate was 71.05% (+ 7.78 pct.):
In the first three quarters of 2020, the company's overall gross profit margin was 69.80% (+ 0.36 pct.), and the expense rate was 71.05% (+ 7.78 pct.). Among them, the sales expense rate, management expense rate (including R & D expenses) and financial expense rate are 51.06% (+ 1.90 pct.), 14.26% (+ 4.23 pct.) and 5.74% (+ 1.65 pct.), respectively.
The company focuses on oncology and ophthalmology, and Lemei is poised to start:
In the field of anti-tumor, the company relies on the core variety "Carnarine" to build a thyroid health management platform.
Carnarine (nano-carbon suspension injection) is a lymphocyte tracer, which is mainly used for lymphatic dissection in a variety of indications, such as thyroid cancer, breast cancer, gastric cancer, colorectal cancer and gynecological tumors. Carnarine has become a routine first-line drug for thyroid surgery in China. In 2019, the sales of sample hospitals reached 246 million yuan, an increase of 35.72% over the same period last year. The thyroid disease health management platform built by the company provides management services for thyroid patients and develops related product groups around thyroid diseases with Carnarine as the core.
In the field of ophthalmology, the company continues to strengthen the distribution of ophthalmic drugs such as myopia, xerophthalmia and retinal diseases.
In 2019, with its own capital of 9.8 million yuan, the company jointly invested with Ayre Ophthalmology to set up a joint venture company Hunan Mayo (49% of which is owned by the company) to develop a series of ophthalmic drugs such as adolescent myopia and xerophthalmia with the help of the hospital system of Aier Eye Hospital. In addition, Laimei Pharmaceutical signed a "strategic cooperation agreement" with Youzhiyou Biology. through the newly established equity investment fund, Youzhiyou Biology won the priority sales agency for Y400 wet macular degeneration (nAMD), a new ophthalmic drug developed by Youzhiyou ophthalmology, to strengthen the distribution of drugs for retinal diseases.
Investment suggestion: from 2020 to 2022, the revenue is expected to reach 1.717 billion yuan, 1.657 billion yuan and 1.927 billion yuan respectively, an increase of-7.6%,-3.5% and 16.3% respectively over the same period last year; and the net profit of returning to the mother is 50 million yuan, 134 million yuan and 183 million yuan, up 132.3%, 166.6% and 37.3% respectively over the same period last year.
Risk hints: the risk of drug price reduction, the risk that the progress of new drug research and development is not up to expectation, the risk that asset disposal is not up to expectation, etc.