Performance summary: The company achieved operating income of 3.276 billion yuan (-8.58%); net profit to mother of 210 million yuan (-31.75%), net profit of 212 million yuan (-26.17%); mainly due to impairment of assets accrued in 2023 affecting net profit of 93.2226 million yuan; gross profit margin of 44.87%, and sales/management/R&D expense ratios of 15.49%/7.56% 6.02%, respectively. Revenue for Q1 to Q4 of 2023 was 851/935/800/690 million yuan, respectively, and net profit was 0.50/1.34/1.02/-0.76 billion, respectively. Revenue of 647 million yuan (-23.90%) was achieved in Q1 of 2024, and net profit of 64 million yuan (+28.38%) to mother; revenue declined mainly due to the sluggish price drop in the heparin API and formulation industry.
Sales revenue of heparin products declined, and nuclear drugs were under pressure in the short term. ① The nuclear medicine sector's revenue was 1,017 million yuan (+11.20%), the key product 18F-FDG revenue was 420 million yuan (+12.00%), Yunke injection revenue was 244 million yuan (+19.52%); and revenue from technetium labeling-related drugs was 100 million yuan (-3.23%). ② The API business revenue was 1,678 billion yuan (-18.61%), of which key products, heparin-based API products, achieved operating revenue of 1,326 billion yuan (-23.88%); sales revenue of heparin products declined. ③ The pharmaceutical business revenue was 400 million yuan (-17.20%), mainly due to the fact that nadroparin calcium injections won the bid for the 8th batch of centralized national drugs in March 2023, and sales prices declined.
The nuclear drug business continues to deepen, and R&D investment continues to grow. The company invested 313 million yuan (+77.23%) in R&D, of which nuclide drug research and development accounted for 76.73%. The 177Lu-LNC1004/1003 injection is undergoing clinical phase I in China and the US. Fluorine [18F] alfatide injections for lung cancer diagnosis and APN-1607 products for Alzheimer's disease diagnosis products are in phase III clinical to marketing application stages. During 2023, the holding subsidiary Lan Nacheng and its subsidiary Yantai Midu both achieved capital increases and stock expansion, which are expected to accelerate product progress and help Lan Nacheng launch its pipeline products as soon as possible.
Profit forecast and rating: The company's revenue for 2024-2026 is expected to be 31.50/35.88/4.128 billion yuan, respectively, up -3.8%/13.9%/15.0% year on year; net profit to mother will be 2.94/3.64/ 446 million yuan, respectively, up 40.4%/23.5%/22.6% year on year. Maintain a “buy” rating.
Risk warning: Product sales fall short of expectations, new drug development progress falls short of expectations