Haizheng Pharmaceutical Co., Ltd.: multi-wheel drive, steady development of comprehensive pharmaceutical enterprises. Haizheng Pharmaceutical Co., Ltd. is a veteran state-owned pharmaceutical enterprise. After more than 60 years of development, Haizheng Pharmaceutical Co., Ltd. has become a comprehensive pharmaceutical enterprise with multi-wheel drive of chemical medicine, biological medicine, animal protection business and pharmaceutical commerce. After five years of reform pains, the company has ushered in a reversal of difficulties, focusing on core business and continuous optimization of asset structure. at present, various business sectors have developed well and their profitability has improved steadily.
Hanhui Pharmaceutical, the core asset, is the leading CSO platform in China, and the introduction of innovative products is expected to increase volume quickly.
Hanhui Pharmaceutical is the leading CSO platform in China, inheriting Pfizer Inc's mature compliance system, leading in the industry in sales promotion and access capacity, and significant economies of scale. The company's product matrix covers anti-infection, cardiovascular, oncology and other treatment areas. On the one hand, the local production of the original research products promotes profitability, and at the same time, a number of innovative varieties are introduced rapidly, driving steady growth in performance.
The innovative drug asset Borey Biology has achieved remarkable commercial results in the combination of imitation and innovation in the research and development pipeline. Borey Biology focuses on the research and development of biological drugs in the two major areas of autoimmunity and oncology. At present, six products have been successfully put on the market, on the one hand, with the help of biological similar drugs to quickly open the market, but also a class of new drugs on the market. The commercialization of the company has achieved remarkable results, with a three-year compound growth rate of more than 50%, and the product matrix is expected to be further enriched in the future.
Focus on animal health products for many years, the leading domestic pet medicine brand. Haizheng animal insurance deep ploughing animal health products industry for nearly 30 years, the layout of pig business, ruminant business, pet business, vaccine business in four major areas, income has maintained rapid growth in recent years. The company focuses on the layout of pet medicine business, the core products Hailemiao, Mo Aijia put on the market quickly, in the field of deworming has become the first brand of domestic pet medicine.
Profit forecast and rating: from 2023 to 2025, the company is expected to achieve revenue of 125.88x137.60 / 14.823 billion, an increase of 4.6%, 9.3%, 7.7%, and a year-on-year increase of 43.7%, 26.5% and 22.2%, respectively. With reference to comparable companies in the same industry, the company will be given a 2023 PE 25X, corresponding to the target share price of 14.54 yuan, with a "buy" rating for the first time.
Risk hints: intensified market competition leads to lower-than-expected sales; product national negotiations set acquisition and price reduction affect sales; R & D is not as expected, etc.