Event: on December 15, 2020, the company announced the establishment of Zhejiang Hemukang Pharmaceutical Technology Co., Ltd. with its own capital of 2 million yuan, with a shareholding ratio of 20%. The registered capital of the joint venture company and Mukang is 10 million yuan, and the investment partners are Zhejiang Heze Pharmaceutical and Hangzhou Muyuan Biology, which own 51% and 29% respectively. Each of the three parties appoints a director, the chairman of which is appointed by Hangzhou Muyuan Biology, and Heze Pharmaceutical will appoint the general manager of the joint venture company (and act as a legal person) to recommend the financial person to the board of directors.
The strength of the partner is excellent, which helps the company to build the whole industry chain capacity of CXO. Heze Pharmaceutical was founded in 2006, has more than 300 project development experience (including consistency evaluation), currently under research and approval of more than 50 licensed products, under the establishment of 4 subsidiaries, business involved in drug MAH licensing and sales, drug package material compatibility and third-party testing, pre-BE/BE/ clinical phase I research and high-end preparation research and development, with the ability of CRO-CMO-CSP-CSO industry chain closed-loop service Research and development strength is outstanding, with the country's first drug R & D institution "Drug production license", ranking seventh among the top 20 Chinese pharmaceutical R & D companies in 2019. With the help of cooperation, the company first cut into the field of CRO, and in the future, based on its own strong production capacity and sales channels, it is expected to further expand CMO/CDMO and CSO, and build the capacity of the whole industry chain of CXO.
Relying on the R & D team, the product layout is further strengthened. In recent years, the company has strengthened its investment in research and development and achieved remarkable results. A total of 109 varieties and 191 drug production approval documents have been obtained, of which 48 varieties have been listed in the national medical insurance catalogue and 13 varieties have been listed in the national base drug catalogue. In addition to continuing to evaluate the quality and efficacy of key generic drugs, the company also speeds up the registration and application of drugs such as lansoprazole for injection and ambroxol hydrochloride injection. In 2020, the company obtained two drug registration approvals for levocarnitine injection and flucloxacillin sodium for injection to further enrich the product pipeline.
We will actively layout the field of high-end medical services and expand the large health industry chain. The company indirectly invests in Boao Super Hospital by participating in Chengmei International Medical Center, which is the company's first attempt to enter the field of high-end medical services. in the future, Boao Super Hospital will actively expand the field of medical services and lay out a large health industrial chain.
Profit forecast and investment advice. It is estimated that the net profit from 2020 to 2022 will be 210 million yuan / 250 million yuan / 290 million yuan, a year-on-year growth rate of 5%, 17%, 16%, and the holding rating will be maintained.
Risk hint: the risk of intensified market competition and the risk of rising prices of raw materials.