公司发布2024 年一季报：24Q1 营收7.03 亿元/+14.97%，归母净利润506 万元/-82.03%，扣非归母净利润-195 万元/-132.6%；经营活动净现金流为652 万元，加权ROE 为0.29%/-1.26pct；基本EPS 为0.007 元/股。Core views
The steady increase in revenue in the pharmaceutical business in 24Q1 helped the same increase in revenue by 15%, and the performance of investment in the medical and aesthetic business was under pressure. The company's pharmaceutical business contributed the main revenue in '23. The gross margin of some pharmaceutical products declined due to the withdrawal of medical insurance and the impact of national procurement. The net profit returned to the mother in the year 23 was -72 million yuan, a year-on-year decrease but still lost money. AestheFill polylactic acid facial filler was certified in January '24, promotion and communication began in March, and officially launched in April. It is expected that channel development and new product promotion volume will contribute to the increase in performance. The medical and aesthetic circuit has sufficient reserves of products. The future focus will be on the progress of products such as hyaluronic acid (which is expected to be submitted for registration by the end of 24 and approved by the end of 25), collagen, table linen, and lipolysis.
occurrences
The company released its 2024 quarterly report: 24Q1 revenue of 703 million yuan/ +14.97%, net profit of 5.06 million yuan/ -82.03%, net profit after deducting non-return to mother - 19.5 million yuan/ -132.6%; net cash flow from operating activities was 6.52 million yuan, weighted ROE was 0.29% /-1.26pct; basic EPS was 0.007 yuan/share.
The company released its 2023 annual report: 2023 revenue of 2,240 million yuan/ +10.55%, net profit to mother of 0.72 billion yuan (-0.76 million yuan in the same period last year), net profit of non-return to mother of -999 million yuan (-97 million yuan in the same period last year); net cash flow from operating activities was -204 million yuan (56 million yuan in the same period last year), weighted ROE was -4.06% /+0.19pct; basic EPS was -0.101 yuan/share.
Brief review
In 24Q1, revenue from the pharmaceutical business grew steadily, and the performance was under pressure from investment in the medical and aesthetic business.
The 24Q1 company's revenue was 703 million yuan/ +15%, mainly due to the growth of the pharmaceutical business and trade business, of which 24Q1 pharmaceutical business revenue was 476 million yuan/ +9.3% (including 167 million yuan for the pharmaceutical industry and 309 million yuan for the pharmaceutical business). Net profit of 24Q1 was 5.06 million yuan/ -82.03%, net profit of non-return to mother - 19.5 million yuan/ -132.6%, mainly due to the decline in the gross margin of the pharmaceutical business and the impact of continued expenditure investment in the medical and aesthetic business.
The company's pharmaceutical business contributed the main revenue in '23, and the performance decreased year-on-year losses. In 2023, the company's revenue was 2,240 million yuan/ +10.55%, including pharmaceutical revenue of 1,840 million yuan/ +29.46%, trade revenue 377 million yuan/ -35.64%, and medical and aesthetic revenue of 0.08 billion yuan/ +2696.72%.
Net profit from the mother in '23 - 0.7 billion yuan. The loss was reduced year on year but was mainly due to: 1) the gross margin of some of the company's pharmaceutical products declined due to the withdrawal of medical insurance and national procurement. The gross profit margin for the pharmaceutical business in '23 was 27.78% /-10.76pct; 2) equity incentive expenses and 3) R&D investment in the medical and aesthetic business.
AestheFill polylactic acid facial filler has been approved for marketing and is expected to become an important performance growth point in the future. In January '24, the product “AestheFill,” a product of Sun Company Datou Medical, was issued a “Medical Device Registration Certificate” by the State Drug Administration; in March '24, the company began a national injection conference; on March 25, the Chinese name “AestheFill” was established; and a press conference was held on April 23 to announce the seats of the first batch of 75 cooperating agencies. Using smooth porous microsphere technology, PDLLA has an immediate shaping effect and is more effective in promoting collagen regeneration. In addition, blending solutions with various concentrations can be formulated according to the degree of softness and hardness of different facial tissues. Currently, the head of the company's medical aesthetic and marketing team has rich experience in product promotion and doctor training and education, and is gradually expanding the sales team. It is expected that channel development and new product promotion volume will contribute to the increase in performance.
The medical and aesthetic circuit has sufficient reserves of products. In the future, we will focus on the progress of products such as hyaluronic acid, collagen, table linen, and fat dissolving. The company lays out clinical research on various injections and adjuvant products such as collagen, hyaluronic acid, ripropyl dicaine cream, and fat-dissolving injections through agency, cooperation, and self-development. Among them:
1) Hyaluronic acid: Through Shang Li Huimei, the Korean medical and aesthetic company Humedix has steadily promoted clinical work on the latest injectable biphasic crosslinked lidocaine-containing sodium hyaluronate gel product, which has completed clinical enrollment in 23 years; 2) Collagen field: On the one hand, it has relied on the advanced processes of its Zhongkai Biopharmaceutical Factory to further develop and industrialize recombinant collagen type III humanized collagen biosynthesis technology with a trimer structure. In addition, it has collaborated with Nanjing Dongwan to promote recombinant type III humanized collagen biosynthesis technology based on recombinant human collagen type I Therapeutic and aesthetic treatment of raw proteins Clinical research on injectable products further expands the upstream injectable product pipeline and enriches the company's matrix layout in the field of recombinant collagen.
Investment advice: The company's revenue is expected to be 28.00, 33.94, and 39.95 billion yuan in 2024-2026, +11.1%, +25.2%, +20.7% year-on-year, and net profit to mother of 1.23, 2.42, and 369 million yuan, +271.5%, +96.42%, and +52.1%. The corresponding PE is 63X, 32X, and 21X, maintaining the “increase” rating.
Risk warning:
1) Industrial policy impact: The pharmaceutical industry is one of the industries most profoundly affected by national policies, involving various government departments, ministries and agencies such as national health insurance, health care, drug supervision, industry and information technology, and intellectual property. The implementation and promotion of a series of new policies, such as centralized procurement of drugs at the national and local levels, rational drug use and restriction of adjuvant drug use policies, control of the growth rate of medical expenses, adjustment of medical insurance payment methods and payment prices, adjustment of the basic drug catalogue, tilting the medical insurance catalogue towards cost-effective innovative drugs, biosafety and environmental protection are all related to the production costs and profit level of the entire pharmaceutical industry. The industry competition pattern continues to improve.
2) Technological innovation risk: If the development progress and direction of drugs do not match future market demand, or poor sales due to factors such as increased competition after the launch of the new drug, it may affect the recovery of early investment and the achievement of economic benefits, which in turn adversely affects the company's profit level and development.
3) Medical and aesthetic business R&D and promotion have fallen short of expectations: The company is currently strengthening the management of existing R&D projects and accelerating the R&D and clinical registration of existing product pipelines.
