Events:
Borey Pharmaceutical released its third quarterly report for 2023 on October 26: in the first three quarters of 2023, the company achieved revenue of 915 million yuan, an increase of 18.46% over the same period last year; net profit of 192 million yuan, down 2.95% from the same period last year; and net profit of 188 million yuan, up 3.59% from the same period last year.
The company's Q3 single-quarter revenue in 2023 was 327 million yuan, up 20.38% from the same period last year; the return net profit was 82 million yuan, down 3.82% from the same period last year; and the non-return net profit was 0.83%, down 4.09% from the same period last year.
Main points of investment:
The company's revenue grew steadily in the first three quarters of 2023. In the first three quarters of 2023, the company achieved revenue of 915 million yuan, an increase of 18.46% over the same period last year. The net profit of returning to the mother was 192 million yuan, down 2.95% from the same period last year. The net profit of non-return was 188 million yuan, an increase of 3.59% over the same period last year. In 2023, Q3's revenue in a single quarter was 327 million yuan, up 20.38% from the same period last year; the net profit from home was 82 million yuan, down 3.82% from the same period last year; and the net profit from non-return was 0.83 yuan, down 4.09% from the same period last year.
The company's Q3 technology revenue and equity share is growing rapidly. The company's Q1-3 product sales income is 776 million yuan, up 12.32% over the same period last year. Of this total, the API sales revenue is 674 million yuan, up 9.71% from the same period last year; and the preparation sales revenue is 102 million yuan, up 33.34% from the same period last year. The company's single Q3 product sales revenue was 249 million yuan, an increase of 4% over the same period last year; of which, API sales revenue was 232 million yuan, up 5% from the same period last year; preparation sales revenue was 17.85 million yuan, down 33.34% from the same period last year. Technical income was 56.25 million yuan, an increase of 115% over the same period last year, while income from equity sharing was 13.24 million yuan, an increase of 227% over the same period last year.
The company's R & D investment and financial expenses have increased. The company's Q3 gross profit margin is 63.16%, down 0.35 percentage points from the same period last year. The rate of sales expenses was 5.10%, down 0.03 percentage points from the same period last year. The rate of administrative expenses was 9.56%, down 0.57 percentage points from the same period last year. The rate of R & D expenditure was 18.46%, an increase of 1.84% over the same period last year. The financial expenses were 6.1 million yuan, an increase of 13.3 million yuan over the same period last year.
Steady progress of the company's research and development project so far, tiotropium bromide inhalation spray, tiotropium bromide inhalation spray and salmeterol fluticasone inhalation powder have completed process verification, and tiotropium bromide inhalation powder has completed the pilot test. BGC0228 for injection is in the phase of clinical Ⅰ trial, and dose expansion studies are being carried out at 125mg/m3 dose level. 13 subjects have been enrolled in the study, including cervical cancer, ovarian cancer, gastric and esophageal cancer and so on. The ethical approval of Ⅱ phase clinical trial has been obtained for BGM0504 injection weight loss and type 2 diabetes treatment, and the Ⅱ phase clinical trial for type 2 diabetes treatment and weight loss indications has begun to enter the group.
The profit forecast and investment rating are based on the slight slowdown in the company's performance growth in the first three quarters. We downgrade the company's profit forecast. It is estimated that the company's revenue will be 12.07,14.32 and 1.823 billion yuan respectively, an increase of 19%, 18% and 28% over the same period last year. The corresponding return net profit is 2.63,3.06 and 387 million yuan, an increase of 10%, 16% and 27%. Corresponding to PE valuation 66.35X/57.12X/45.09X. The impact of the epidemic has been eliminated, the company's production capacity has been released one after another, the research and development of large varieties has been gradually promoted, and the company is optimistic about the long-term development of the company. Maintain a "buy" rating.
The risk indicates that the speed of research and development is not as fast as expected. The risk that the company's preparation products fail to win the bid. The company faces the risk of price reduction in winning the bid for the collection of preparations. The cause of the epidemic affects the risk of the company's API export. The change of exchange rate leads to the risk of increasing the export cost of API. The technology income fluctuates greatly, and there is a risk of refund of the prepaid funds.