Event
The company released its annual results KuaiBao, with a total operating income of 3.295 billion yuan, an increase of 1.17% over the same period last year, an operating profit of 995 million yuan, an increase of 21.22% over the same period last year, a total profit of 988 million yuan, an increase of 18.26% over the same period last year, and a net profit of 839 million yuan, an increase of 16.79%.
Comment
The performance exceeded expectations and the biological products are expected to grow rapidly.
In 2020, the company's annual income reached 3.295 billion yuan, overcoming the impact of the epidemic and still achieving an increase of 1.17% over the same period last year. Quarter by quarter, revenue in the fourth quarter of 2020 reached 947 million yuan, an increase of 11.67% over the same period last year, and the quarterly growth rate increased quarter by quarter. At the same time, the company's expenses are well controlled, the profit growth rate is higher than the income growth rate, and the performance is higher than expected.
Although Compex cut prices by 25% after new indications entered health insurance at the end of 2019, it was offset by a sharp increase in sales in 2020. Looking forward to 2021, Compaq's terminal growth in January is strong, is expected to grow by about 40%, and is no longer disturbed by price cuts, is expected to achieve rapid growth in sales revenue. In addition to biological products, the company's chemical medicine and traditional Chinese medicine business is expected to grow slightly.
Compaq American III phase clinical is progressing smoothly, and it is expected that there will be several milestones this year. Compaq wAMD indication III clinical has completed 36-week follow-up at the end of September last year, and is expected to release 36-week follow-up data around March this year. It is expected to reach the clinical end point by the end of 2021 and declare for listing. The III phase clinical of DME and RVO indications has also obtained SPA, which is progressing steadily. In addition to the United States, the company continues to promote registration applications in other countries, and Compaq internationalization is expected.
The progress of research and development is also rich, and platform innovative pharmaceutical companies can be expected.
In 2019, Kanghong Pharmaceutical introduced two R & D leaders, two of whom have overseas advanced study experience and rich industrial R & D background to promote Kanghong Pharmaceutical's innovation and R & D. In only one year, the company is obviously rich in research and development pipelines, and platform pharmaceutical companies can expect. In 2020, the company added 9 new products in the research pipeline, covering small molecules, monoclonal antibodies, double antibodies and gene therapy, with in-depth layout around ophthalmology, oncology and psychiatry. In the next three years, the company will have a number of innovative drugs into the clinical stage.
Profit Forecast and Investment rating
We estimate that from 2020 to 2022, the company's operating income will be 3.295 billion yuan, 3.774 billion yuan and 4.673 billion yuan respectively, and the net profit will be 839 million yuan, 1.013 billion yuan and 1.351 billion yuan respectively. The corresponding price-to-earnings ratios are 47 times, 39 times and 29 times respectively. Given the leading position of the company's fundus biopharmaceuticals and the potential of the Chinese and American market, give a buy rating.
Risk analysis.
The progress of research and development is not as expected; the clinical trial is not as expected; the risk of medical insurance cost control.
