Description of the event: The company released its 2022 annual report. The company achieved revenue of 48.21 million yuan (+529.3%), net profit of -220 million yuan, after deducting net profit of non-return mother of 270 million yuan.
Sales of the core product contezolomide were in line with expectations. 2022 was the first full sales year for contezolid after it was included in national health insurance. It achieved revenue of 48.21 million yuan for the whole year, +529% compared to the previous year. The main reason was to improve drug accessibility after contezolid was included in national health insurance, and the revenue base in 2021 was small. By the end of 2022, contezolid had covered 320 hospitals, and more than 70 hospitals were officially admitted and batch zero had been collected. The company's operating cost in 2022 was 8.82 million yuan, of which the cost of commissioned processing was 3.48 million yuan, accounting for 59.3% of the total production cost.
On the cost side, in 2022, the company's R&D expenses were 150 million yuan, sales expenses were 82.52 million yuan, and management expenses were 63.66 million yuan. By the end of 2022, the company's monetary capital and transactional financial assets totaled 1.27 billion yuan.
Actively promote product research and development. The company continues to promote the development of various products. In 2022, the company initiated the enrolment of injectable MRX-4 and contezolomide tablets for the treatment of diabetic foot infection in a global phase III clinical trial, completed the MRX-8 US phase I clinical trial, and initiated the MRX-8 China phase I clinical trial.
On the other hand, the company raised market awareness of contezolid through post-marketing clinical research and expanded product application scenarios. Contezolamide and MRX-4 are expected to have great potential in fields such as drug-resistant tuberculosis and bloodstream infections in the future.
Publish a draft equity incentive to inject business vitality. The company recently announced an equity incentive plan to award restricted shares to 126 incentive recipients at a grant price of 5 yuan/share. According to the equity incentive draft, the company's revenue assessment targets for 2023-2025 are 80-100 million yuan, 12—160 million yuan, and 16—240 million yuan respectively. This incentive is conducive to boosting the work enthusiasm of the company's core executives and new employees in the past two years, injecting new vitality into the company's long-term operations.
Profit forecasts and investment recommendations. EPS is expected to be -0.56 yuan, -0.85 yuan, and -0.56 yuan respectively in 2023-2025. Considering the outstanding clinical value of contezolid and its potential to go overseas, the “buy” rating will be maintained.
Risk warning: the risk of falling product prices, the progress of research pipelines falling short of market expectations, and the risk of market competition.