Event: the company announced its semi-annual report of 2023, with operating income of 6.791 billion yuan (+ 21.99%), net profit of 1.606 billion yuan (+ 53.16%), and non-return net profit of 1.541 billion yuan (+ 46.67%).
From a quarterly point of view, single Q2 realized operating income of 2.856 billion yuan (+ 0.40%), net profit of 404 million yuan (- 28.49%), and non-return net profit of 363 million yuan (- 35.26%).
Comments:
In the first half of 2023, the company's gross profit margin was 61.74%, a year-on-year decrease of 0.51 pcts, and a net profit margin of 23.61%, an increase of 4.79pcts over the same period last year. In terms of expenses, the sales / management / R & D / financial expense rates of 23H1 are 22.45%, 4.34%, 5.93% and 0.07% respectively, with year-on-year changes in-4.12pcts/0.21pcts/-0.79pcts/-0.07pcts, of which the financial expenses are-41.13% compared with the same period last year, mainly due to the increase in interest income during the reporting period.
Up to now, the company has a total of 13 patented varieties of traditional Chinese medicine, of which 10 are listed in the national medical insurance catalogue and 5 in the national essential medicine catalogue, laying a good foundation for the company to maintain sustained and rapid growth in the next few years. According to the treatment field, the income of 23H1 respiratory products is 3.088 billion yuan (+ 20.95%), cardio-cerebrovascular products is 2.511 billion yuan (+ 10.44%), other patented products is 277 million yuan (+ 47.26%), and other products is 915 million yuan (+ 65.90%).
In the patented traditional Chinese medicine sector, the company has formed a unique advantage of using collateral disease theory to guide clinical treatment and research of major diseases, and the innovation of collateral disease theory promotes the scientific and technological core competitiveness of patented new drug research and development. On the one hand, the company continues to promote new product research and development, the faster progress is Qi Huang Mingmu capsule in the declaration stage, Chaihuang Lidan capsule and Yuping Tongqiao tablet completed the III phase clinical subjects out of the group, Xiaoer Lianhua Qinggan granule and Luobitong tablet are in the III phase clinical stage. On the other hand, the company continues to carry out post-market re-evaluation and secondary development of listed traditional Chinese medicine varieties, and listed varieties continue to carry out in-depth discussion of pharmacodynamic mechanism, post-market evidence-based medicine evaluation and real-world research to further enhance the clinical value of the products.
Profit forecast: we expect the company's net profit from 2023 to 2025 to be 2.194 billion yuan, 2.715 billion yuan and 3.296 billion yuan respectively, an increase of-7.1%, 23.7% and 21.4% respectively over the same period last year, and the corresponding EPS is 1.31,1.63,1.97 yuan respectively. The company has a number of patented traditional Chinese medicine in the field of cardio-cerebrovascular and respiratory to form a unique product layout, and at the same time has a competitive advantage in scientific research under the guidance of collateral disease theory. In the future, there are a number of innovative traditional Chinese medicine coming out one after another, referring to comparable companies, we give the company 2023 20-25X PE, corresponding to a reasonable value range of 26.20-32.75 yuan, maintaining a "better than the market" rating.
Risk tips: proprietary Chinese medicine with volume procurement risk, R & D promotion is not as expected, market promotion is not as expected.