Events: the company released its results report for the third quarter of 2020 on October 29, 2020. In the first three quarters of 2020, the company achieved revenue of 3.542 billion yuan, an increase of 12.85% over the same period last year, and a net profit of 709 million yuan, up 5.56% over the same period last year. The net profit after deducting non-return was 606 million yuan, an increase of 173.00% over the same period last year.
The epidemic caused customers to adjust the purchase pace of heparin APIs, and Q3 performance growth slowed down in 2020:
In the first three quarters of 2020, the company achieved revenue of 3.542 billion yuan, an increase of 12.85% over the same period last year, a net profit of 709 million yuan, an increase of 5.56% over the same period last year, and a net profit of 606 million yuan, an increase of 173.00%. The slowdown in performance growth in the third quarter of 2020 is mainly due to the fact that the epidemic caused customers to adjust the pace of heparin API procurement.
In the first three quarters of 2020, the company's overall gross profit margin was 39.29% (+ 3.88 pct.), and the expense rate was 24.89% (+ 0.14 pct.):
In the first three quarters of 2020, the company's overall gross profit margin was 39.29% (+ 3.88 pct.), and the expense rate during the period was 24.89% (+ 0.14 pct.). Among them, the sales expense rate, management expense rate, R & D expense rate and financial expense rate were 8.26% (- 0.82 pct.), 8.14% (+ 4.56 pct.), 1.96% (- 2.39pct.) and 6.52% (+ 0.54 pct.), respectively.
Heparin preparation has the multi-dimensional advantage of "cost + quality + sales", and continues to be optimistic about the steady growth of its sales in overseas markets:
The company's heparin preparation has strong advantages in production cost, product quality, sales team and so on. Among them, in terms of production cost, the company carries out the whole industry layout in the field of heparin, ensuring the stability of heparin raw material supply and cost controllability; in terms of product quality, the company's enoxaparin drug warning rate is low, and the drug safety is the leading in the world; in terms of sales, the company has set up its own overseas sales team of enoxaparin preparation to achieve accurate sales in overseas markets. With the continuous penetration of sales in the European market and the gradual release of the "prescription spillover" effect, the sales of enoxaparin sodium preparation continue to grow steadily.
Investment suggestion: the company is expected to achieve a net profit of 914 million yuan, 1.144 billion yuan and 1.428 billion yuan respectively from 2020 to 2022, an increase of-13.7%, 25.0% and 24.8% respectively over the same period last year.
Risk hints: the risk of falling prices of heparin raw materials; the sales of enoxaparin are not up to expectations; the progress of new drug research and development is not up to the expected risk, etc.
