Event: the company released its semi-annual report for 2022, with revenue of 3.759 billion in the first half of 2022 (+ 20.7%, year-on-year growth, the same below); net profit of 510 million (+ 51.2%); deduction of 500 million of non-return net profit (+ 77.1%); performance recovered quickly, in line with expectations.
Q2 stable volume, profitability continued to improve: the company Q2 achieved revenue and return net profit of 18.48 yuan and 276 million yuan, an increase of 0.2% and 41.9% respectively over the same period last year, and a month-on-month growth rate of-3.2% and 17.6%, respectively. In terms of profitability, the company achieved a gross profit margin of 32.58% (+ 0.6pct) in the first half of 2022; relying on excellent cost control ability, the company's net profit margin increased to 13.58%, and profitability maintained a good recovery.
Each business pipeline maintained a high growth rate: from a business perspective, the company's API business achieved an income of 1.611 billion yuan (+ 5.0%) in the first half of 2022, maintaining a steady growth; the preparation business achieved an income of 1.602 billion yuan (+ 41.9%), and overseas sales were good. A total of 114 million doses of enoxaparin sodium preparations were sold globally, of which the regional sales in the United States increased by 185% compared with the same period last year, which is in a rapid release period. The company achieved an income of 468 million yuan (+ 31.7%) from its CDMO business in the first half of 2022. Relying on the rapid volume of its performance, the gross profit margin increased by 11.3pct to 37.6%.
Heparin API is the world's largest heparin API supplier, the impact of price increases in crude products caused by upstream classical swine fever and pig cycle is gradually alleviated, and the company continues to increase raw material inventory to cushion the cyclical impact, downstream enoxaparin sodium raw material prices are steadily rising, profitability will be restored quarter by quarter. In terms of preparations, the company has been deeply cultivated in the world's largest European market for many years, the proportion of high-priced out-of-hospital market revenue continues to increase, and has a market leading position in many countries. The company is also accelerating volume in other markets, and after entering the US market in 2021, the short-term driving force is strong, and the target of 25 million units is expected to be quickly achieved in 2022; the domestic market has five specifications of Enoch preparations through consistency, and is expected to quickly seize the domestic market through collection and acquisition in the future. In the long run, relying on the cost and quality advantages of integration, the global market share of enoxaparin preparation is expected to increase rapidly from about 18% in 2021 to 40-50% in 2025.
Profit forecast and investment rating: we maintain the company's 2022-2024 homing net profit forecast of 10.1,12.6 and 1.54 billion yuan, corresponding to the 2022-2024 Pmax E valuation of 23x, 19x, 15X respectively; based on the recovery of short-term interest spreads on the company's raw materials, enoxaparin preparations continue to sell overseas, while macromolecular CDMO and innovative drugs provide long-term performance support and maintain the "buy" rating.
Risk tips: raw material price increase risk; exchange rate fluctuation risk; heparin preparation new customer expansion is not as expected risk; policy / environmental protection risk.