Report highlights:
The company is an innovative pharmaceutical company with a diverse layout in the field of diseases. The company with high performance in 2023 is an innovative pharmaceutical company focusing on high-tech products such as the brightening drug Licorjun tablets and the new anti-hypertensive compound Nicunolol tablets. It is committed to the research and development of innovative drugs for depression, tumors, stomach problems, etc. 2023Q1-Q3 revenue and net profit without return to mother increased by 44.64% and 124.59%, respectively.
Liquorjun tablets: Clinically irreplaceable to brighten the superior variety of oral medications. Promising application prospects in the field of oncology are clinically irreplaceable, and the clinical irreplaceable ability to prevent and treat leukopenia during chemotherapy has established a market protection barrier for them. Li Kejun was included in the “Clinical Pathway Interpretation: Oncological Diseases Bulletin (2022 Edition)” as a recommended medication for the treatment of malignant tumor diseases. Furthermore, licorjun tablets can make up for the shortcomings of limited timing and obvious side effects of biological injections in the early and late stages of chemotherapy, and do not affect the effects of chemoradiotherapy. They do not form a competitive relationship with biological agents, and are the most commonly used clinically combined drugs. Liquor's sales revenue and sales volume increased by 32.78% and 31.36%, respectively, in 2022.
Nicunolol: An exclusive domestic single-tablet compound preparation with high blood pressure. It is clinically needed and the heart rate management issue for patients with high heart rate is gradually receiving attention: increased heart rate is probably an important cardiovascular risk factor. Along with the increased incidence of cardiovascular events and the risk of death, the proportion of patients with simple hypertension in China with a central rate of at least 80 beats/min accounts for 38.2%. Nicunolol tablets are an exclusive domestically produced variety. They innovatively use the cooperative antihypertensive mechanism of CCB and beta blockers. While effectively controlling blood pressure over a long period of time, they can also effectively protect target organs. Nicunolol tablets have been listed as recommended by several guidelines. The compound annual growth rate of nitronolol tablet revenue in 2018-2022 reached 31.9%.
R&D pipeline: The R&D pipeline continues to advance rapidly, and major new varieties are expected to continue to become a new growth point. The company has built a R&D technology platform supported by compound formulation research and development technology, deuterium-substituted drug development technology, and liposomal drug research and development technology, and has begun a series of innovative drug research. It is expected that in 2025, the new antidepressant JJH201501 will complete phase III clinical research and apply for production approvals and new drug certificates, which is expected to become a new growth point for the company's future performance.
Investment advice and profit forecasting
With the accelerated development and penetration of licojun in the field of oncology and niqunolol in patients with hypertension and high heart rate, the company's revenue growth rates are expected to be 28.42%, 24.72% and 23.78% respectively in 2023-2025; net profit growth rates of 34.09%, 24.94% and 26.47%, respectively; EPS is 1.11/1.39/1.75 yuan/share, and the corresponding PE is 18.48/14.79/11.69X. First coverage, giving a “buy” rating.
Risk warning
Risks such as the risk of sales of core products falling short of expectations, risk of failure in the development of new drugs, and deterioration of the competitive environment.