The performance of the industry has grown steadily throughout the year, and profit margins have continued to improve. In 2021, the company achieved a total revenue of 2.045 billion yuan (RMB, the same below), an increase of 16.6% over the same period last year, mainly due to the steady growth of Niaoduqing granule income. The gross profit margin reached 74.7%, a slight decrease in 0.7pct compared with the same period in 2020, mainly due to higher costs caused by rising prices of some raw materials. In 2021, the company achieved a net profit of 590 million yuan, an increase of 18.3% over the same period last year. The corresponding net interest rate was 28.9%, an increase of 0.4pct over the same period in 2020, and the profit margin continued to improve.
With Nephrology as its flagship, the "1-6" product line has developed in an all-round way. At present, the company has created a "1x 6" comprehensive product line, with nephrology as its flagship, comprehensively promoting the development of imaging, women and children, bone injuries, skin, liver and gallbladder, digestive products. In 2021, the income of nephrology series products was 1.365 billion yuan, accounting for 67% of the group's income. Among them, the leading product Niaoduqing granule continued to release, and the sales revenue in 2021 was about 1.313 billion yuan, an increase of 16.7% over the same period last year, mainly due to the company's continuous academic promotion. Recently, the Guangdong Union announced the collection results of Qingkailing and other proprietary Chinese medicines. Judging from the decline in the price of Niaoduqing granules compared to the lowest price, the price of Niaoduqing granules has dropped by about 14%, compared with the average decline of 19% in the exclusive varieties to be selected. Its price decline is relatively mild. In addition, the income from imaging products, women's and children's pharmaceutical products and Yulin pharmaceutical products is 141 million yuan, 206 million yuan and 312 million yuan respectively, accounting for 7%, 10% and 15% of the group's income respectively. Among them, Yulin Pharmaceutical's "brand + channel + terminal" rectification strategy is carried out smoothly, which is expected to drive the company's long-term sustainable development in the future.
The R & D pipeline is progressing smoothly: in terms of independent research and development, the production verification of iodoparanol consistency evaluation has been completed, and the pilot trials of iodoxalol, perfluoropropane lipid microspheres and lanthanum carbonate have all been completed; in terms of cooperative research and development, the company signed a 10-year strategic cooperation agreement with Wuxi Apptec to jointly develop three small molecule innovative drugs for kidney disease. According to the current research and development progress, it is expected that 3-4 varieties will complete the production verification in 2022, and the number of the company's products is expected to be further expanded in the next three years.
Our point of view: considering the company's steady business strategy and the continuous progress of Yuyao's rectification and reform, we believe that the company is expected to consolidate its business advantages in the field of nephrology and imaging, and its market share is expected to continue to increase in the future.
Risk tips: research and development progress is not as expected, product sales are not up to expectations after the market, policy risk
