Events:
Yiling Pharmaceutical released the third quarterly report of 2023: in the first three quarters of 2023, the company realized revenue of 8.575 billion yuan, an increase of 7.91% over the same period last year; net profit of 1.759 billion yuan, an increase of 24.35% over the same period last year; and net profit of 1.64 billion yuan, an increase of 15.84% over the same period last year.
Main points of investment:
The scientific research strength is strong, and the effectiveness of the product has been proved. At present, the company has formed a four-level theoretical research system of collateral diseases, from the Professional Committee of collateral Diseases of the World Society of traditional Chinese Medicine, to the annual International Congress of collateral Diseases, and then to provincial collateral disease societies and local collaterals disease sectors. the perfect fourth-level collateral disease theory research system has built a good platform for the academic promotion of collateral disease theory and effectively promoted the integration of traditional Chinese and western medicine in related diseases. On October 24, local time in the United States, the "Research on Myocardial Protection of Chinese Tongxinluo in the treatment of Acute Myocardial Infarction" led by Professor Yang Yuejin of Fuwai Hospital of Chinese Academy of Medical Sciences and led by Professor Yang Yuejin of Fuwai Hospital of Chinese Academy of Medical Sciences and led by Professor Yang Yuejin of Fuwai Hospital of Chinese Academy of Medical Sciences, was published in the Journal of American Medical Association (120.7), one of the four top medical journals in the world. The results show that Tongxinluo capsule can significantly improve the clinical prognosis of patients with ST segment elevation myocardial infarction (STEMI) for 30 days and 1 year, and provide effective drugs for improving the long-term prognosis of acute myocardial infarction (AMI).
The layout of public products is rich and the future development is strong. The company promotes the industrialization of traditional Chinese medicine with the innovation of collateral disease theory, uses modern high and new technology to research and develop traditional Chinese medicine and chemical medicine, and develops more than ten national patented new drugs. covering cardiovascular and cerebrovascular diseases, respiratory diseases, tumors, diabetes, nervous system, urinary system diseases and other major diseases, the product layout is complete, the echelon is reasonable, laying a solid foundation for the future development of the company.
Profit forecast and investment rating. We estimate that the operating income of the company from 2023 to 2025 will be 119.98, 136.03 and 15.274 billion yuan, and the return net profit will be 20.50,24.58 and 2.825 billion yuan, corresponding to the PE of 18.17x, 15.15x and 13.18x. As the company continues to focus on its core business, it continues to strengthen the endogenous growth drive and maintain its "buy" rating.
Risk tips: performance growth is less than expected, industry competition intensifies, collection and acquisition price reduction risk, pharmaceutical policy risk, business strategy risk.