Event description
The company released its three-quarter report for 2022. In the first three quarters, the company realized operating income of 1.82 billion yuan and net profit of 460 million yuan, an increase of 15.7% and 45.1% respectively over the same period last year, and realized EPS1.97 yuan. In the third quarter, the company realized operating income of 590 million yuan, an increase of 5.8% over the same period last year, and a net profit of 160 million yuan, an increase of 76.4% over the same period last year. The company's sales gross profit margin is 80.0%, and the net sales profit margin is 47.6%, which is 1 percentage point higher than that of the China report.
The company's main body of business, Dain Pharmaceutical, achieved an operating income of 530 million yuan and a net profit of 280 million yuan in the third quarter, an increase of 33.6% and 68.8% respectively over the same period last year. In the first three quarters, Dain Pharmaceutical achieved an operating income of 1.61 billion yuan and a net profit of 830 million yuan, an increase of 40.5% and 48.5% respectively over the same period last year.
Event comment
Dain Pharmaceutical's share of revenue and net interest rates continued to rise. Dain Pharmaceutical accounted for 89.8% of revenue in the third quarter, up from 88.1% in China. Based on evidence-based medicine evidence, the company adjusted the new applicable age of Ike from 0-3 years old to 0-6 years old. The net profit margin of Dain Pharmaceutical in the third quarter was 53.8%, an increase of 3 percentage points compared with the reported figure of 50.8%. The increase in net profit is related to the new price increase. Yikexin 30-pack (the largest of all specifications) raised the price nationwide in July by 6.4%. The price increase will help improve revenue and profits, and the company will continue to strengthen terminal channel cooperation. to promote the continuous increase of Ikexin and other varieties.
New varieties have been approved and new therapeutic varieties have been accelerated. The company has recently obtained the Drug Registration Certificate of Tomoxetine Hydrochloride Oral liquid (Category IV), which is mainly used for attention deficit / hyperactivity disorder (ADHD) in children and adolescents aged 6 and over. Other therapeutic products of the company include oral rehydration salt powder (Ⅲ) and desloratadine, and product access related work is under way. In addition, the company strengthens the promotion of vitamin D, Gaidixin (compound calcium carbonate effervescent granules), Yijiaxin (iron dextran granules) and other mineral products, and it is expected that the mineral varieties will continue to grow rapidly.
Investment suggestion
It is estimated that the EPS of the company from 2022 to 2024 will be 2.21,2.81,3.53 yuan respectively, and the closing price of the corresponding company on October 19 will be 49.95 yuan, and the PE will be 17.3,13.6,10.9 times respectively. We believe that the company is a leading enterprise in children's medicine, and Ike's new products will maintain rapid growth after expanding the applicable population and raising the price. At the same time, with the advantages of brand and channel, other individual products and therapeutic categories will also grow rapidly. The governance structure of the reform of state-owned enterprises has been significantly improved, the management system has been straightened out, and the internal motivation is sufficient. We are optimistic about the development of the company for a period of time in the future and give it a "buy-B" rating.
Risk hint
Risk factors include, but are not limited to: the risk that the epidemic repeatedly affects terminal sales, the risk that the promotion of new products is not as expected, the risk of product price reduction, and so on.