On March 29, 2024, the company released its 2023 annual report. In 2023, the company achieved revenue of 5.342 billion yuan, +18%; realized net profit of 1,482 billion yuan, +38% year over year; realized net profit after deducted from non-return mother of 1,267 million yuan, +42% year over year; in a single quarter, the company achieved revenue of 1,429 million yuan, +56% year over year; realized net profit of 414 million yuan, +136% year over year; realized net profit without return to mother of 361 million yuan, +167% year over year.
Management analysis
The blood products business is growing steadily, and construction of plasma stations continues to advance. According to the company's announcement, the company's blood products achieved revenue of 2,926 billion yuan in 2023, an increase of 9.22% over the previous year. Among them, human blood albumin achieved revenue of 1,057 billion yuan, a year-on-year increase of 6.97%; intravenous propium achieved revenue of 845 million yuan, an increase of 8.96% over the previous year; and revenue from other blood products reached 1,025 billion yuan, an increase of 11.87% over the previous year. In 2023, the company completed pulp stations in Huangchuan County, Shangshui County, Xiayi County and Yichuan County and successfully obtained the “Single Plasma Collection License”. The commissioning of the new pulp station and the expansion of the original plasma source laid a solid foundation for the company's blood products business to maintain growth. In 2023, the company's pulp collection volume was 1342.32 tons, an increase of 19.59% over the previous year.
The influenza vaccine was rapidly distributed, and the number of batches issued continued to lead. In 2023, the company's vaccine achieved revenue of 2,405 billion yuan, of which the influenza vaccine achieved revenue of 2.403 billion yuan, an increase of 32.19% over the previous year. In 2023, the company obtained a total of 94 batches of influenza vaccine, including 73 batches of quadrivalent influenza vaccine (adult dosage form), 15 batches of quadrivalent influenza vaccine (children's dosage form), 6 batches of trivalent influenza vaccine, and the number of batches issued for quadrivalent influenza vaccine and influenza vaccine continues to maintain its leading position in the country.
Continue to increase investment in R&D to cultivate new profit growth points. The company will accelerate the development of drugs such as human vascular hemophilia factor (vWF), intravenous human immunoglobulin, etc., and accelerate clinical research work on recombinant exendin-4-FC fusion protein injections, high-concentration next-generation intravenous human immunoglobulin, and human coagulation factor IX (FIX); participating company Hualan Gene will complete the marketing application process for bevacizumab to accelerate phase III clinical research work on adalimumab, trastuzumab, rituximab, and denomumab Phase I clinical research, etc. to cultivate new profits for the company Growth points.
Profit Forecasts, Valuations, and Ratings
We maintain our profit forecast for 2024-2026, and expect the company to achieve net profit of 17.1 (+15%), 19.6 (+15%), and 2.23 billion yuan (+14%), respectively. In 2024-2026, the company's corresponding EPS was 0.90, 1.05, and 1.16 yuan, respectively, and the corresponding current PE was 22, 19, and 17 times, respectively. Maintain a “buy” rating.
Risk warning
Risk of medical insurance price reduction and fee control; risk of influenza vaccine sales promotion falling short of expectations; risk of increased competition; progress in research and development falling short of expectations, etc.