During the 2010 reporting period, the company realized operating income of 489 million yuan, an increase of 28.40% over the same period last year; the net profit attributable to shareholders of listed companies was 12.48 million yuan, 173.22% of that of 2009; and the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 12.43 million yuan, an increase of 39.10% over the same period last year.
The overall performance is in line with expectations, and the business trend continues to improve. The company's basic earnings per share in 2010 was 0.0466 yuan, slightly exceeding our previous expectation of 0.04 yuan. The company's valuation was determined by the development of each business unit, while the profit pillar, proprietary Chinese medicine business and biological business, continued to maintain the growth trend. Under the background of the implementation of equity incentives, the overall business trend of the company continues to improve.
The study of low dose radiation continued, and the follow-up of ricardine was expected. The sales revenue of Likatin in 2010 was 20.832 million yuan, an increase of 4.9142 million yuan over the same period last year. It is expected to sell more than 800 units in the whole year, which is lower than our estimate of 1,000,1200 units on the basis of the judgment released in August. However, compared with 291 units in the first half of the year, the volume effect after the release of the Phase IV clinical trial report has been reflected. We have always stressed that the significant growth of ricardine should be in 2011. At present, we need to pay attention to three points: 1, Likatin marketing crossed the break-even point for the first time in 2010; 2, 2011 will be the first complete accounting year of Likatin marketing after the release of Phase IV clinical trial report; 3, the company will continue to carry out low-dose clinical research on licardine to break through the bottleneck of drug use.
The biological industry will become the core business, and new products are expected to be launched this year. The company clearly wants to become a health pharmaceutical enterprise group with biotechnology as the core, and the company's biological preparation workshop project is scheduled to be put into production in December 2011. the new bio-industry products oxidized low density lipoprotein quantitative determination kit and freeze-dried eye drops recombinant human epidermal growth factor are expected to be launched within this year.
The growth rate of proprietary Chinese medicine business is stable and it is still the pillar of the group's profits. The revenue of proprietary Chinese and western medicines increased by 23.5% over the same period last year to 156 million yuan, with a net profit of 21.92 million yuan, which is still the pillar of the group's profits. The revenue of Sanqi Tongshu capsule increased by 48.78% over the same period last year, which is still the most anticipated variety in the company's traditional Chinese medicine industry, while Vitality Su has officially become another 10 million-level product of the company.
Maintain a "buy" rating. The company's business development is basically in line with expectations, the future of the biological industry represented by Likatin is still worth looking forward to, maintaining the profit forecast and "buy" rating.
Risk tips: the promotion of ricardine is slower than expected; the growth rate of the development of proprietary Chinese medicine is declining; the cost of medicinal materials is under pressure.