Performance Overview: The company's revenue in 2023 was 2,652 million yuan (-3.87%); net profit to mother was 237 million yuan (-45.06%), mainly due to goodwill impairment preparations of 298 million yuan formed by calculating the acquisition of Nanjing Xinbai.
The gross profit margin in 2023 was 52.76% (-1.90pcts), and the sales/management/ R&D expenses ratio was 21.97%/7.35%/2.55%, respectively. Among them, the blood products business achieved revenue of 1,452 billion yuan (+10.41%) and a gross profit margin of 69.74% (-0.80pcts). Jingpropylene's revenue was 445 million yuan (+15.55%), albumin revenue was 438 million yuan (+4.26%), fiber revenue was 419 million yuan (-3.20%), and revenue from other products was 150 million yuan (+94.95%). The market share of the core product, fibrin, is in a leading position in China, and human prothrombin complex (PCC) ranks third in the industry.
The core focus is on blood products business, strengthening plasma station resource expansion and acquisition integration. Fuda Pharmaceutical completed the business change procedure for transferring 75% of China Resources Pharmaceutical's shares in September; in September, the board of directors deliberated and approved the transfer of 260 million yuan of Tianan's 89.681% shares to China Resources Shuanghe; and they have all completed the divestment of the statements. The divestment of non-blood products businesses such as Xinbai Pharmaceutical and Boya Xinhe has been actively promoted. In 2023, 467.3 tons of pulp were collected (+6.47%). In terms of pulp station expansion, with the advantage of shareholder China Resources Group, two pulp stations (Taihe and Leping) were approved within 2023. Currently, there are 16 single plasma collection stations, of which 14 are in Yingying.
Subsequent companies will strengthen the expansion of pulp station resources and actively seek integration opportunities for blood products companies in the industry.
Increase investment in R&D and innovation, and strengthen academic promotion. A number of new product projects were launched in 2023, and C1 esterase inhibitors were approved for clinical use in June; clinical research on vascular hemophilia factor (VWF) and intravenous human immunoglobulin (IVIG) (10%) projects was carried out; innovative platforms collaborated to lay out research directions in the field of small nucleic acids, gene therapy, and immunotherapy. The company attaches importance to building an academic system and continuously improving product coverage and penetration rate.
Strive to achieve the goal of doubling the total number of pulp stations, pulp collection scale, and core financial indicators. Fiber and PCC products maintain leading positions in the domestic market, and build smart factories that throw more than 1,200 tons of pulp per year.
Profit forecast and rating: The company's revenue for 2024-2026 is expected to be 1,847/20.00/2.84 billion yuan, respectively, up -30.4%/8.3%/9.2% year on year; net profit to mother is 5.40/5.79/633 million yuan, respectively, up 127.5%/7.1%/9.5% year on year. Maintain a “buy” rating.
Risk warning: Pulp station development falls short of expectations, product development progress is slow, industry policy risks