[Table_Summary] nearly 90% of the company's profit comes from chemical peptide drugs. Since its establishment in 2000, the company has been committed to the research and development, production and sales of chemically synthesized polypeptide drugs. Thymus Faxin for injection, somatostatin for injection and thymopentin for injection are the company's main products. In 2011, the operating income of polypeptide products was 100 million yuan, accounting for 75.19% of the company's revenue, and the operating profit was 87.87 million yuan, accounting for 88.22% of the company's operating profit. Among them, the revenue and profit of the injection thymus method in 2011 were 95.61 million yuan and 85.04 million yuan respectively, accounting for 71.73% and 85.38% of the company's revenue and profit, respectively.
The industry of chemical synthetic peptides will still be in a period of rapid development. The molecular weight of peptide drugs is between small molecular chemical drugs and protein drugs, which has the advantages of good stability, high biological activity and strong specificity, so it has been paid more and more attention by the market. From 2007 to 2010, the sales scale of chemically synthesized peptide drugs in China reached 7.6 billion yuan, with an average annual growth rate of 27.27%. At present, polypeptide drugs in China are still dominated by foreign brands, and domestic enterprises are all in imitation production. Due to the difficulty of peptide synthesis process, the market concentration is high. Twenty-six chemically synthetic peptide drugs have been listed in China, and 17 have been localized. The patent protection period of international chemosynthetic peptide drugs mostly expires in the next 5 to 10 years, which will provide Chinese enterprises with new market opportunities.
The new market competition of thymus injection method may tend to be fierce. This product is a high-end product in immunomodulatory preparations, with a sales growth rate of 27.18% in 2008-2010 and a market size of nearly 1.6 billion yuan in 2010. with the expansion of new indications, the market has great potential to rise. At present, there are six domestic enterprises that can produce, two of which were approved only in 2010. The company is the second approved enterprise in China, its product pricing is slightly lower than that of other domestic manufacturers, and its sales volume is the second in China. With the entry of newcomers, the market competition may become fierce, and the average purchase price of hospitals may continue to decline.
Investment suggestion: we estimate that the EPS of the company from 2012 to 2014 will be 0.68,0.88 and 1.05 yuan respectively. According to the valuation of the A-share comparable company and the growth of the company, we will give the company 24029 times PE in 2012, with the corresponding price range of 16.32 yuan to 19.72 yuan.
Risk hint: the risk of a single product; the risk of a product price limit.