Recently, the company released its annual report for 2021. During the reporting period, the company achieved operating income of 1.509 billion yuan, an increase of 26.94% over the same period last year, a net profit of 417 million yuan, an increase of 2.25% over the same period last year, and a deduction of 406 million yuan for non-net profit, an increase of 6.69% over the same period last year.
The company also released the first quarter report of 2022. During the reporting period, the company achieved operating income of 368 million yuan, an increase of 34.58% over the same period last year, a net profit of 162 million yuan, an increase of 33.44% over the same period last year, and a deduction of 149 million yuan for non-net profit, an increase of 25.53% over the same period last year.
Event comment
Overseas injections are released rapidly, and the dominant varieties are growing steadily. According to the line of business, in 2021, the company: 1) the revenue of overseas business reached 231 million yuan, an increase of 40.88% over the same period last year. We expect it to be mainly driven by the rapid release of overseas injection varieties.
2) the income of anti-allergic drugs reached 294 million yuan, an increase of 33.78% over the same period last year, which is mainly due to the rapid growth of its core product desloratadine; 3) the income of non-steroidal anti-inflammatory drugs reached 119 million yuan, an increase of 3.09% over the same period last year; 4) the income of antibiotic drugs reached 447 million yuan, an increase of 93.12% over the same period last year, achieving rapid growth 5) the income of digestive tract drugs was 155 million yuan, an increase of 29.91% over the same period last year. 6) the income of cardiovascular drugs was 266 million yuan, down 21.41% from the same period last year.
The quarterly report achieved high growth. In the first quarter, the company continues to expand the depth and width of international and domestic markets, continues to increase investment in technology research and development, and at the same time continues to consolidate and enhance the company's dominant position in the field of single variety segmentation, and further expand domestic and foreign drug sales.
Continue to increase R & D investment, in the research variety quantity and quality level is expected to accelerate. The company continues to increase R & D investment, "imitation, innovation" combination, generic drugs with high technical difficulty, good future competition pattern, differentiated products as the goal, focus on research and development to ensure that the company continues to introduce high-value varieties, in order to form a market strategy of a basket of varieties within the same indications. Through years of international registration and accumulation, the company has formed a strategic arrangement for both domestic and foreign newspapers of the research project. At present, there are more than 130 varieties under development, involving the first imitation + challenge patent generic drugs, improved new drugs 505b (2) and new solid compounds.
Be optimistic about the future development of the company and maintain its "buy" rating. With the continuous expansion of preparation export and domestic preparation business, we believe that the company's business has the potential for sustained and rapid growth. We expect the company's net profit from 2022 to 2024 to be 6.04,7.90 and 1.038 billion yuan respectively, an increase of 45%, 31% and 31% respectively over the same period last year, and the corresponding EPS is 1.38,1.81,2.38 yuan respectively. The current stock price corresponds to 18x, 14x and 11x respectively from 2022 to 2024, and continues to maintain the "buy" rating.
Risk hint
1. The progress of product R & D and listing is not as expected.
2. European and American pharmaceutical policies have high standards for quality, which may have a great impact on production and operation if they cannot be met.