The lower-than-expected performance in the first quarter of this year was mainly due to the fact that the fair value of financial assets was recorded at fair value. During the period, income increased by 16.9% year-on-year to 7.874 billion yuan (people's allowance, the same below), and the dividend fell by 4.6% to 1.405 billion yuan, accounting for 22.4% of the bank's annual forecast. Excluding non-operating items and one-time income, dividend is expected to increase by 12.3% to 1.54 billion yuan per year.
Increase the power of large retail networks
Of this total, the company's turnover increased by 15% to 6.302 billion yuan year-on-year; on the base with a high base in the same period last year, Enbippu sales will grow by 7.4% on an annual basis. Due to the frequent outbreak of the COVID-19 epidemic and the consolidation of sales, the annual growth rate of sales of anti-cancer products during the period was reduced to 15.4%, but thanks to the inclusion of Atrek in the health care catalogue, anti-infective products recorded a significant increase of 28.4%. With the continuous increase in the number of products on the market in recent years, respiratory disease products and digestive disease products have recorded strong growth. The company is working with retail partners to expand its retail network in order to achieve greater growth.
Income from raw materials and other products increased by 2.53% to 1.572 billion yuan year-on-year, while the consumption of antibiotics, vitamin C and caffeine all increased, but the segment profit rate decreased by 5.7 percentage points to 18.8% year-on-year, mainly due to the decline in vitamin C. Management revealed that stone currently accounts for 70% and 45% of the market share in the field of caffeine and vitamin C, respectively, indicating the company's energy and cost savings. People's wage is expected to benefit the raw material industry, hedging by vitamin C raw materials fell sharply, resulting in some of the downside.
COVID-19 Vaccine is stored for Development
In April, novel coronavirus mRNA vaccine SYS6006, which has been approved by a new hospital, has completed the second round of vaccination of recipients in the Phase I study, and the corresponding figures are expected to be available in July. The II bed trial is expected to start in June this year. The company is making a preliminary assessment of the effectiveness of the reinforcement and is still negotiating with many countries on the sequence.
In addition, the novel coronavirus mRNA vaccine developed by Shifu is highly effective in storage and can be stored between 2 and 8 degrees Celsius. At present, the company has made good preparations for the production of SYS6006, with a production capacity of 500 million tons, which is expected to reach at least 1 billion tons by the end of this year.
Guotai Junan predicts that the company will have more than 30 new / new products and more than 60 imitation products listed from 2022 to 2026, providing strong support for the annual compound growth rate of the company's dividend. Mitoxantrone resin and doveliser were mass-produced in the first quarter of this year. At the same time, reatinib and mRNA COVID-19 vaccines will be mass produced this year, while gonadomycin B liposome, irinotecan, paclitaxel and other vaccines will be approved in 2023. New symptoms of albumin-bound docetaxel, Embipril sac and irinotecan fat were approved in 2024.
Focus on research and development of new capabilities
In the long run, the core competence of medical manufacturers will return to R & D and innovation. Considering that the company has sufficient capital, excellent R & D strength, strong product management and continuous production, the sales network is mature, and the middle-aged bank is worth "earning". The target is HK $11, which is equivalent to the price-to-earnings ratio of 19 times and 16.8 times from 2022 to 2023.