In 2020, Q1 to Q3 companies achieved an operating income of 2.348 billion yuan (- 2.56%) and a net profit of 579 million yuan (+ 4.8%). The company Q3 achieved an operating income of 954 million yuan (+ 7.2%) in a single quarter and a net profit of 244 million yuan (15.3%). All three major sectors achieved year-on-year growth, and Compaq continued to sell volume.
Support the main points of rating
The results returned in the third quarter, and all three major sectors achieved year-on-year growth. In the first half of 2020, the outpatient clinic was closed due to COVID-19 's epidemic, which adversely affected the company's performance. In the third quarter, the outpatient clinic basically resumed work in an orderly manner, and the company's performance gradually recovered. In the third quarter, the company realized operating income of 954 million yuan, an increase of 7.2% over the same period last year. In the third quarter, the revenue of the company's proprietary Chinese medicine, chemical medicine and biological products sector all achieved year-on-year growth: the proprietary Chinese medicine sector achieved business income of 261 million yuan, an increase of 9.15% over the same period last year; the chemical medicine sector achieved 349 million yuan, an increase of 5.79% over the same period last year; the biological products sector reached 343 million yuan, an increase of 6.62% over the same period last year.
Compercip continues to increase volume and still has great potential for growth. In November 2019, health insurance revealed that the price of Compaq was 4169 yuan per unit, down 24.2% from the previous price. In the third quarter, Compaq achieved an operating income of 343 million yuan, an increase of 6.62% over the same period last year, and sales increased by 40% over the same period last year.
Compaq included indications for diabetic macular edema (DME), wet age-related macular degeneration (nAMD) and choroidal neovascularization (pmCNV) secondary to pathological myopia.
With the continuous promotion of internationalization, the review of the special test scheme of CompaSIP has been approved by FDA. The global phase Ⅲ clinical trial of Combuxil ophthalmic injection for the treatment of wet age-related macular degeneration (nAMD) completed the 36-week primary end-point visit for all subjects on September 25, with the trial progressing as expected. The wholly-owned subsidiary of the company received notification from FDA through Compaq vitreous ophthalmic injection to conduct phase III clinical trials of diabetic macular edema (DME) caused by branch retinal vein occlusion (BRVO) and central retinal vein occlusion (CRVO) in the United States. The company will carry out follow-up clinical trials in accordance with the relevant regulations and requirements of drug registration in the United States according to the actual situation.
Valuation
The company's performance in the first three quarters was affected by the epidemic, and its operating income decreased compared with the same period last year.
According to the changes in the industry environment, we downgrade the profit forecast. It is estimated that the net profit of 2020, 2021, and 2022 is 749 million yuan, 869 million yuan, 1.119 billion yuan, and 0.857 yuan, 0.995 yuan, and 1.281 yuan, respectively, for EPS. (in our profit forecast for August 2020, we estimate that the net profits of 2020, 2021, and 2022 are 777 million yuan, 964 million yuan, 1.193 billion yuan, and 0.89 yuan, 1.103 yuan, 1.365 yuan, respectively, for EPS. )
Main risks faced by rating
Traditional business growth fell short of expectations; hospital outpatients continued to be hit by the epidemic, Compaq sales fell short of expectations; and wet age-related macular degeneration (nAMD) global phase Ⅲ clinical trials failed to meet expectations.
