Event: the company reported that Q1-Q3 realized 23.348 billion yuan in revenue, down 2.56% from the same period last year, and its net profit was 579 million yuan, an increase of 4.85% over the same period last year. The net profit after deducting non-return was 522 million yuan, an increase of 3.57% and 0.66 yuan, respectively. Revenue in the third quarter was 955 million yuan, an increase of 7.15% over the same period last year, and the net profit was 244 million yuan, an increase of 15.32% over the same period last year. The net profit after deducting non-return was 229 million yuan, an increase of 21.69% over the same period last year. Overall performance is in line with expectations.
Q3 core business sector is recovering well, and Compaq Sipp sales are picking up quickly. From the perspective of spin-off business in a single quarter, the revenue of proprietary Chinese medicine Q3 was 261 million yuan, an increase of 9.15% over the same period last year. Compared with the-5.37% growth rate of H1, Q3 proprietary Chinese medicine sales have recovered well. The income of chemical drugs was 349 million yuan, an increase of 5.79% over the same period last year, which is basically the same as the growth rate of H1, and steady growth can still be achieved under the epidemic. According to the data of the sample hospital, it is expected that the main varieties, venfaraxine, aripiprazole, and right zopicron tablets will increase slightly. The revenue of biomedicine, Compaq, is 343 million yuan, an increase of 6.62% over the same period last year. Taking into account the implementation of health insurance renewal prices this year, Q3 sales are expected to grow by more than 40%, showing a strong trend of continuous increase in penetration.
Gross profit margin has declined under the influence of price reduction, and expense-side expenditure has been reduced to improve profitability. Q3's overall gross profit margin was 89.70%, down 2.41pct from the same period last year, which is expected to be mainly due to the price of health insurance renewal implemented by Compaq. On the expense side, the Q3 single-quarter sales expense rate is 48.43%, which is basically the same as that of the same period last year; the management expense rate is 7.51%, which is 5.61% lower than the same period last year and 4.22pct is 5.61% lower than the same period last year. It is expected that some clinical projects are progressing and R & D investment tends to be stable. Thanks to the continuous improvement on the expense side, the Q3 single-quarter net interest rate was 25.61%, an increase in 1.81pct compared with the same period last year.
Compaq International multicenter clinical progress is expected to share the vast global fundus disease market for a long time. On September 25, the global phase Ⅲ clinical trial of Compaq for the treatment of wAMD has completed visits to the main end point of week 36 for all subjects. In addition, the company announced on October 26 that the phase III clinical trial of DME, BRVO and CRVO in the United States has passed the review of the special trial scheme of FDA. Compaq's overseas listing plan is moving forward steadily, with reference to Leizumab and Abexil sales. In the future, Compaq is expected to participate in the global competition to share the broad market space.
Maintain a "buy" rating. Compaq, the core product of the company, has great market potential. The research pipeline includes KH906 eye drops for treating neovascularization induced by trauma, chemical burns and keratoplasty, and KH903 for colorectal and other organ tumors. The revenue in 20-22 years is expected to be 33.10pm, the net profit of homecoming is 7.95cusp, and the corresponding PE is 1.02 billion times that of 48-40-32. Maintain a "buy" rating.
Risk hint. The risk that Compaq sales are not as expected, the risk that clinical progress is not as expected, and the risk that proprietary Chinese medicine and chemical drugs are not sold as expected.
