Performance summary: in the first half of 2023, the company realized operating income of 2.81 billion yuan (+ 3.93%) and gross profit margin of 24.64% (- 4.96pct). The net profit of homing is 357 million yuan (- 27.79%), and the net profit of non-homing is 358 million yuan (- 26.82%). The slowdown in income growth is mainly affected by the low demand in the downstream market, the fierce market competition and the downward price of core API products, and the profit end drops obviously. in addition to product price factors, at the same time, the key pharmaceutical intermediate business with high gross profit margin is affected by the high base of the epidemic in the same period last year.
Performance split: (1) Pharmaceutical sector: 2023H1 achieved income of 1.86 billion yuan (+ 6%), in which the sales volume of macrolide products in the raw material plate increased significantly and its market share continued to increase; the price of intermediate products was under pressure, superimposed by the high base impact of last year's epidemic, and revenue and profit declined slightly. (2) Animal protection plate:
2023H1 achieved income of 942 million yuan (+ 1%), the prices of the main products florfenicol and doxycycline decreased significantly, but the shipment volume increased significantly, and the overall income was basically the same as that of the same period last year; in addition, the florfenicol enzyme production technology was fully landed in the first half of the year, the cost was effectively controlled, and the company had a significant competitive advantage.
Production capacity construction is progressing smoothly, and new products with characteristic APIs are expected to contribute to new increments in performance. The production capacity construction of 2023H1 Company has progressed smoothly, with an annual output of 4000 tons of florfenicol entering the equipment installation stage, and 23Q4 trial production is expected; the second phase of the annual production of doxycycline has been completed and entered the stage of acceptance and certification; and the construction of sodium borohydride series products has entered the equipment installation and commissioning stage. In the future, with the gradual release of production capacity, the company's scale advantage will be further expanded. In addition, the company's product matrix continues to be rich, focusing on mental, digestive, cardiovascular and other therapeutic areas. Moxifloxacin, Viglitine, Lanthanum Carbonate and Rivasaban products are gradually sold, which is expected to contribute new increments to the company's performance in the future.
Profit forecast and rating: in 23-25, the company is expected to achieve revenue of 61.58, 69.16, and 7.942 billion yuan, an increase of 7.6%, 12.3%, 14.8%, 7.34, 9.64, 1.65 million and 20.3%, 31.3, 20.9%, respectively, corresponding to 15.9, 12.1, 10.0 times PE. Maintain a "buy" rating.
Risk hints: product price change risk, market competition aggravation risk, industry policy change risk, raw material price change risk