Main points of investment
The annual performance in 2022 is eye-catching, with steady growth in the fourth quarter. In 2022, the company achieved revenue of 2.341 billion yuan, a year-on-year increase of 15.49%, a year-on-year increase of 527 million yuan, a year-on-year increase of 38.55%, and a deduction of 529 million yuan for non-net profit, an increase of 48.51% over the same period last year. The company's annual growth performance was outstanding under the background of the epidemic disturbance. The profit growth rate was higher than the income growth rate, mainly due to the increase in the proportion of environmental protection business, the main pharmaceutical industry, and the net interest rate of Dain Pharmaceutical Industry. In 2022, Q4 achieved revenue of 522 million yuan in a single quarter, an increase of 14.87% over the same period last year, and net profit of 64 million yuan, an increase of 4.67% over the same period last year, deducting 77 million yuan of non-net profit, an increase of 45.01% over the same period last year. The income growth in the fourth quarter was stable, and the low growth rate of net profit was mainly due to the difference between non-recurring profit and loss.
Dain Pharmaceutical Co., Ltd. has achieved rapid growth in performance and fruitful business development. In 2022, the company insisted on focusing on the main pharmaceutical industry, accounting for 87.18% of the company's total revenue, and the profits from Dain Pharmaceutical accounted for 96.19% of the net profits of shareholders of listed companies. Dain Pharmaceutical has an outstanding performance, with revenue of 2.041 billion yuan in 2022, an increase of 38.58% over the same period last year, and net profit of 972 million yuan, up 46.55% over the same period last year. Revenue in the fourth quarter was 436 million yuan, up 32% from the same period last year, and net profit was 141 million yuan, up 36% from the same period last year.
Yikexin AD drops both online and offline co-force, continue to improve permeability, the second-line varieties continue to promote steady growth. Sales of the main product ikexin vitamin AD drops have increased. 1) in terms of marketing, Dain Pharmaceutical has built a high-quality marketing team and adhered to the core marketing strategy of "expert authoritative recommendation, convenient channel purchase, and professional category education". Continue to promote the brand, there is still room for continuous improvement in the penetration rate of Ikexin. 2) the channel construction and digital marketing system construction are very effective, and the online and offline joint efforts are effective. At the beginning of 2022, according to the evidence of evidence-based medicine, Dain Pharmaceutical promoted the age of ikexin vitamin AD drops from 0-3 years old to 0-6 years old, the consumer group expanded, and objectively promoted the sales of products. At the same time, the sales of iron dextran granules, vitamin D drops and compound calcium carbonate effervescent granules newly promoted in the past two years have also increased greatly.
Profit forecast and valuation: according to the company's operating conditions, we adjust the profit forecast. It is estimated that the operating income from 2023 to 2025 will be 28.20,33.73,3.995 billion yuan respectively, an increase of 20.5%, 19.6% and 18.4% over the same period last year, and the net profit will be 6.51,7.98 and 965 million yuan respectively, an increase of 23.6%, 22.5% and 20.9% over the same period last year. The closing price on March 10, 2023 corresponds to PE of 14.4,11.7 and 9.7X, maintaining the "overweight" rating.
Risk tips: product collection price reduction, sales below expectations, negative public opinion, fluctuations in the number of births, increased competition, raw material price fluctuations and other risks.