This report is read as follows:
Under the decrease of the epidemic situation in the third quarter, the core product Hi body and you keep the needle terminal volume during the day, the profitability is significant under the product competitive advantage, and the multi-pipeline differential product matrix helps the long-term growth space and maintain the holding rating.
Main points of investment:
Maintain the overweight rating. 2022Q1-3 realized revenue of 1.489 billion yuan (+ 45.58%), net profit of 992 million yuan (+ 39.96%), net profit of 965 million yuan (+ 44.06%), revenue of 605 million yuan (+ 55.15%), net profit of 401 million yuan (+ 41.55%) and net profit of 395 million yuan (+ 52.26%) in the third quarter. The impact of the epidemic decreased in the third quarter, and the performance growth rate increased in the third quarter. From 2022 to 2024, the EPS was maintained at 6.51 PE70X 9.35pm 13.21 yuan, and the target price was maintained at 654.50 yuan, corresponding to the 2023 increase in holding rating.
The gross profit margin has broken through the new high, and the profitability of the core variety is outstanding. It is expected that the core products and new products will continue to release white angel needles during the reporting period. Under the superimposed large-scale effect of high gross margin varieties, the gross profit margin of 2022Q1-3 reached 94.61%, breaking through a new high. The expenditure rate is reasonably controlled and stable as a whole, of which the R & D expenditure rate is 7.73% (+ 1.7pct), and continues to increase R & D investment. The net interest rate is 66.61%, which remains high, and the competitive advantage of core products is obvious.
The clinical progress in the research pipeline is going well. Botulinum toxin type A, in cooperation with HuonsBio in South Korea, is currently in Phase III; Lilarutide injection completed Phase I trial; Lidocaine tetracaine Cream got clinical approval in October 2021; Clinical trials were conducted with modified sodium hyaluronate gel containing polyvinyl alcohol gel microspheres; deoxycholic acid drugs (fat needles), the second generation of facial thread embedding, hyaluronidase and other clinical and preclinical product research and development progressed smoothly. Differentiated product pipelines contribute to long-term performance growth.
Catalyst: you make needle terminal sales exceed expectations during the day; the progress of research and development of reserve projects is accelerated.
Risk tips: new product research and development and registration risk; medical and beauty industry accident risk