Incidents:
On March 20, Pailin Biotech issued an announcement on the company's overseas market regulations to register export trade and sign an exclusive license and supply agreement. Guangdong Shuanglin recently signed an exclusive licensing and supply agreement with the Pakistani distributor 3ADIagnoAg. The details of the agreement include:
1) Guangdong Shuanglin authorized 3A to carry out exclusive marketing in the Pakistani market. The product authorized to cooperate was intravenous human immunoglobulin (pH4) 2.5g (5%); 2) the parties agree that the quantity and price of the product supplied for each natural year shall be determined by separate negotiations between the two parties, and stipulated in the annual supply agreement signed separately by the two parties; 3) The initial period of cooperation between the two parties is 10 years, which can be renewed for 2 years after negotiation between the two parties.
Jing Bing's overseas expansion continues to advance, providing strong impetus for the company's long-term steady growth:
As the largest variety in the global blood products market, Jingacrylic has rich indications and broad application prospects. Overseas markets have strong demand for Jing and C, and the factory price is expected to be higher than at home.
After the epidemic, domestic physicians' and patients' awareness of the clinical value of Jingbai increased, and usage showed a good growth trend. Currently, demand continues to be strong.
The company has continued to promote overseas exports since 2019. After obtaining Jingbing's listing approval in Pakistan in August 23, it recently signed an exclusive distribution agreement for 10 years with local dealer 3A, laying a good foundation for the company Jingbing to go overseas, and the overseas market is expected to contribute to good performance flexibility in the future. We expect that the company's net profit for 2023-2025 will be $60/7.7/940 million yuan, respectively, and the corresponding EPS will be 0.82/1.05/1.28 yuan, respectively. The current stock price corresponding to PE is 33.67/26.24/21.58 times, respectively. We continue to recommend and give a “buy” rating.
Risk warning:
The amount of pulp collected falls short of the expected risk; the risk of product sales falling short of the expected risk; the launch of a new product falls short of the expected risk.