Event

Shanghai Yizhong shares announced the results of its semi-annual report for 2023: revenue in the first half of 2023 was 200.4 million yuan, an increase of 178.88% over the same period last year; net profit was 104.1 million yuan, up 70.73% over the same period last year; and 89.3 million yuan was deducted, an increase of 90.80% over the same period last year.

Main points of investment

Relying on the influence of the guide, sales are growing steadily

The company's core product, paclitaxel polymer micelles for injection, was approved by the State Drug Administration in October 2021 as a class 2.2 innovative drug (innovative dosage forms not listed at home and abroad). The products have been successfully listed in Chinese Medical Association guidelines for diagnosis and treatment of Lung Cancer (2022 Edition), IV stage Primary Lung Cancer guidelines (2023 Edition) and Chinese Society of Clinical Oncology (CSCO) guidelines for diagnosis and treatment of non-small Cell Lung Cancer (2023). In May 2023, the product was successfully listed in the catalogue of "New excellent Pharmaceutical equipment" of Shanghai Biopharmaceutical in 2022, and successively included in all kinds of industry authoritative treatment / diagnosis and treatment guidelines within two years after it was approved to be marketed. relying on the excellent clinical value and influence of the product, the revenue in the first half of 2023 increased by 178.88% compared with the same period last year, and the net profit of returning home increased by 70.73%.

Steady progress in the expansion of indications

Paclitaxel micelle is a broad-spectrum antineoplastic chemotherapy drug, and the company is steadily promoting the expansion of indications. At present, the III phase clinical trial for breast cancer has received ethical approval from the lead research unit, the research project has been officially launched, and patient enrollment is under way. The clinical trial of paclitaxel micelle combined with PD-1 and carboplatin for first-line treatment of advanced lung squamous cell carcinoma with PDL1 < 1% has been approved by the Drug Clinical trial approval Notification 10 in April 2023. At present, the clinical trial is being established and ethically reviewed by the lead research unit. In the future, the indications of paclitaxel micelles will gradually expand to small cell lung cancer, breast cancer, pancreatic cancer, gastric cancer and ovarian cancer. With the expansion of indications, the market space and sales scale of paclitaxel micelles will be further expanded.

Profit forecast

We forecast that the annual 2023E-2025E income of the company is 5.88,11.14 and 1.36 billion yuan respectively, the net profit is 3.07,5.82 and 702 million yuan respectively, and the EPS is 1.95,3.69,4.45 yuan respectively. The current stock price corresponds to 32.1,16.9,14.0 times of PE respectively, giving "buy" investment rating.

Risk hint

Risks such as relying on a single product, less than expected in R & D, and less than expected in commercialization.