Event: the company publishes its 2023 semi-annual report. In the first half of 2023, the operating income was 8.72 billion yuan, up 1.81 percent over the same period last year; the net profit returned to the mother was 815 million yuan, up 1.77 percent from the same period last year; and the non-net profit was 782 million yuan, down 2.77 percent from the same period last year.
Looking at Q2 alone, the operating income was 4.161 billion yuan, an increase of 6.48% over the same period last year, and the net profit returned to the mother was 353 million yuan, an increase of 3.51% over the same period last year.
Viewpoint: the performance is in line with expectations, and the growth rate of respiratory department is outstanding.
Sub-plate point of view: respiratory growth performance is eye-catching, anti-infection plate is still affected by meropenem mining.
Lizhu Group (excluding Lizhu Monoclonal Antibody), the company holds 44.77% of the equity: realized operating income of 6.678 billion yuan, an increase of about 6.08% over the same period last year; contributed a net profit of about 607 million yuan. The preparation sector maintained steady growth, and the proportion and profit of high-end characteristic raw materials in the pharmaceutical sector increased steadily.
Lizhu Monoclonal Antibody: the company holds 55.90% equity: affects the net profit of its mother-241 million yuan
Health Yuan (excluding Lizhu Group and Lizhu Monoclonal): achieve operating income of 2.194 billion yuan (year-on-year-7.48%); return mother net profit of 445 million yuan (year-on-year + 5.70%); deduct non-net profit of 435 million yuan (year-on-year + 5.01%).
By type of business:
The operating income of chemical preparation products reached 4.478 billion yuan, down 4.56% from the same period last year. Of this total, the income of respiratory preparation products was 809 million yuan, up 44.08% over the same period last year; the income of digestive tract products was 1.625 billion yuan, down 7.75% from the same period last year; the income from sex-stimulating hormone products was 1.376 billion yuan, up 2.71% from the same period last year; the income from anti-infection products was 300 million yuan, down 56.00% from the same period last year; and the income from spiritual products was 278 million yuan, up 5.31% from the same period last year.
The revenue of API and intermediate products reached 2.683 billion yuan, down 3.20% from the same period last year.
The income of traditional Chinese medicine preparation products reached 986 million yuan, an increase of 91.6% over the same period last year.
The income of biological products reached 113 million yuan, an increase of 5.93% over the same period last year.
The revenue of diagnostic reagents and equipment products reached 298 million yuan, down 13.88% from the same period last year.
The income of health food reached 87 million yuan, an increase of 59.41 percent over the same period last year.
The respiratory department focuses on the layout and features, and a number of follow-up products are about to be put on the market. Budesonide suspension for inhalation, compound ipratropium bromide solution for inhalation, ipratropium bromide solution for inhalation, levosalbutamol hydrochloride atomization inhalation solution, terbutaline sulfate atomization inhalation solution, tobramycin inhalation solution, formoterol fumarate inhalation solution have been approved for sale; fluticasone propionate atomization inhalation suspension, indaterol maleate inhalation powder and salmeterol fluticasone inhalation powder have been reported. Two kinds of new drugs XYP-001 launched phase 1 clinical practice. The company pays attention to the research and development of pharmaceutical equipment combination, continues to develop medical devices matched with its own inhalation preparations, and the net atomizer Mini360+, which can be used with tobramycin inhalation solution, can obtain Class II medical device registration certificate, thus tamping the company's core competitiveness in the field of respiratory diseases.
Profit forecast and conclusion. We believe that Lizhu Group will continue to contribute to stable performance, Lizumab R & D layout will continue to advance, respiratory products will contribute incremental performance, and respiratory R & D pipeline will continue to advance. Based on the current operating situation of the company, we downgrade our profit forecast. It is estimated that the company's net profit from 2023 to 2025 will be 1.65 billion yuan, 1.922 billion yuan and 2.276 billion yuan respectively, an increase of 9.8%, 16.5% and 18.4% respectively. The corresponding PE is 13x, 11x, and 9x, respectively, maintaining the "buy" rating.
Risk hints: the risk of drug sales is lower than expected; the risk of failure of new drug research and development; the risk of price fluctuation of raw materials.