Performance summary: the company released three quarterly reports, the first three quarters realized income of 3.54 billion yuan, about 12.9% compared with the same period last year, realized net profit of 710 million yuan, about 7.6% year-on-year, deducted 710 million yuan, about 5.6% compared with the same period last year; income of 880 million yuan in the third quarter alone, about-12.6% year-on-year, realized net profit of 130 million yuan, about + 2%, and deducted 100 million yuan, about-35%. The overall performance is in line with expectations.
Heparin preparation business grew steadily, and raw materials fluctuated greatly in a single quarter. The company's cumulative sales of heparin preparations in the first three quarters were about 930 million yuan, about + 29% compared with the same period last year, and the gross profit margin was about 45%. The revenue of heparin API business was about 1.8 billion yuan, + 6% compared with the same period last year, of which the revenue in the third quarter was about 330 million yuan,-23% compared with the same period last year. This is mainly due to the fact that the company's main customers chose to temporarily reduce their inventory in the third quarter. The gross profit margin of the API business in the first three quarters was about 43%, laying the foundation for the upward quality of earnings for the whole year. The company is a leading heparin raw drug enterprise, adhering to the integration strategy of heparin industry chain. Enoxaparin preparation has been widely recognized in the European market, accounting for about 18% of the market in 2019. As the company breaks through the European Union market and enters the American market one after another, it is expected that in the future, by virtue of product strength, it will continue to enhance the standardized market share and smoothly promote the global layout.
Build heparin industry chain integration, biological CDMO upgrading growth. The company carries out CDMO business through the dual platforms of Saiwan Biology and SPL, with higher professional and service barriers. In the first three quarters, the total revenue was 580 million yuan, + 16% compared with the same period last year, of which the revenue in the third quarter alone was about 200 million yuan, about + 16% compared with the same period last year. With the addition of new pDNA production facilities and business expansion into the field of gene therapy, Saiwan is expected to benefit from the rapid growth of gene therapy research, and biological CDMO will become an important driving force for the company's profit growth.
Layout of global First-in-class innovative drugs, open up the company's medium-and long-term growth space. Through investment, the company has laid out a number of innovative drug research and development areas with great demand for new treatments, such as tumor immunity, II diabetic complications and drug-resistant bacteria. Oregovomab, RVX208, AR-301 and other products have entered a critical clinical stage, and the company has the right to commercialize in Greater China, which is expected to open up the company's medium-and long-term growth space in the future.
Profit forecast and investment advice. Fine-tuning the company's profit forecast, the return net profit from 2020 to 2022 is 1 billion yuan, 1.2 billion yuan and 1.55 billion yuan respectively. Considering the change of equity, the corresponding EPS is 0.69,0.83,1.05 yuan, and the corresponding PE is 33,26,22 times. With the integration of heparin APIs and preparations, macromolecular CDMO+ innovative drugs open room for growth and maintain a "buy" rating.
Risk tips: enoxaparin preparation sales are not as expected, innovative drug research and development failure risk.
