Event: The company released its three-quarter report for 2023, achieving operating income of 310 million yuan (+5.1%); net profit attributable to shareholders of listed companies was 0.4 billion yuan (+117.8%), and net profit attributable to shareholders of listed companies after deduction was 0.4 billion yuan (+115.5%). The third quarter of 2023 achieved operating income of 100 million yuan (+7.7%); net profit attributable to shareholders of listed companies was 1,0528 million yuan (-15.1%), and net profit attributable to shareholders of listed companies after deduction was 1,03592 million yuan (+40.5%).
Benvermode has achieved relatively rapid growth, and the new indications for atopic dermatitis are in phase III clinical stage. Benvermode's 2023H1 revenue was 32.441 million yuan (+13.7%), achieving relatively rapid growth. In terms of treating psoriasis, clinical results show that Benvermod cream has advantages such as good treatment effect and few adverse effects. Not only is the drug superior to positive controls, but the recurrence rate after discontinuation is low, the remission period after treatment is long, and long-term medication is safe and effective. Benvermod cream was successfully shortlisted in the 2020 health insurance negotiations. The medical insurance payment standard is: 138 yuan (10g: 0.1 g/stick). The contract was successfully renewed in 2023, keeping the original health insurance payment standards unchanged, reflecting the country's affirmation and support for the clinical value of Benvermod cream. In addition to psoriasis, benvermod also has broad application prospects in many important disease fields, including the treatment of atopic dermatitis, allergic rhinitis, and ulcerative colitis. The new indications for atopic dermatitis are in phase III clinical stage.
The contribution of new products in the biomaterial field is increasing, and cellular technology services are growing rapidly. Thoracic surgery repair films increased 35.07% year on year in the first half of 2023; sterile bioprotective films increased 81.49% year on year; type B dura (spinal) membrane patches and breast patches increased 14.41% and 18.32% year on year, respectively; and cell technology services increased 53.79% year on year.
Research projects in the cell field continue to advance, and “biological artificial liver” is undergoing pre-clinical research. Research on “biological artificial liver” is being carried out in pre-clinical research. By improving the effectiveness of cellular process pharmacy research and medical device performance research in vitro support devices, the company is continuously optimizing processes and clinical plans to lay the foundation for final clinical application. Furthermore, the company is currently conducting preliminary research on “mesenchymal stem cells in the treatment of various diseases” and has cooperated with many medical institutions to promote clinical research and filing of mesenchymal stem cell treatment projects; at the same time, the company is actively promoting the “human genetic resource sample bank” application work for future fields such as new drug development, medical transformation research, and biological and health services The innovation and development of provides important scientific and technological platform support.
Profit forecasts and investment advice. The company's net profit from 2023-2025 is estimated to be 0.6/0.8/100 million yuan, respectively, and the corresponding PE is 68X/47X/40X. The company Benvermode is expected to experience rapid growth, and cell technology services will continue to grow rapidly. Maintain a “buy” rating.
Risk warning: the risk of Benvermode's volume falling short of expectations, the risk that the purchase of consumables did not win the bid or the price reduction exceeded expectations, and the risk of R&D failure.