"Chinese medicine Mao" film Zai Zhen earned 2.4 billion yuan last year, but the net profit in the fourth quarter was cut from the waist, and it is planned to spend 4.5 billion yuan to build an industrial park

Intern journalist | Huang Xinran

On the evening of January 19, the 600436.SH, known as the "Moutai in the Chinese Medicine Industry", issued a performance report, saying that in 2021, the company achieved a total operating income of 8.026 billion yuan, an increase of 23.27% year-on-year; the net profit attributable to the shareholders of the listed company was 2.433 billion yuan, an increase of 45.55% year-on-year; and the basic earnings per share were 4.03 yuan, compared with 2.77 yuan in the same period last year.

As for the reasons for the growth in performance, Katazai said that the main reason was that the company strengthened market planning and expanded sales channels, and the sales revenue of its holding subsidiaries Xiamen Katazai Hongren Pharmaceutical Co., Ltd. and Fujian Katazai Cosmetics Co., Ltd. increased. In addition, the company has increased certain profits because of the addition of the online Tmall flagship store of the Katazai Pharmacy and the Jingdong flagship store of the Katazai Pharmacy.

On the evening of the same day, Katazai also announced a large-scale investment, planning to build a new industrial park in Zhangzhou High-tech Zone, with an estimated investment budget of no more than 4.480 billion yuan, and the source of funds is the company's self-financing. "This investment in the new construction does not constitute a related party transaction, nor does it constitute a major asset restructuring." ”

The newly built industrial parks are the Katazai Health Intelligence Park and the Katazai Health Beauty Park, covering an area of 328,000 square meters and 89,000 square meters respectively. The former is responsible for the research and development of compound tablets zai zhen lozenges, compound tablets zai zhen ointment, compound tablets zai fu hemorrhoid cream, Yin bili ping liver capsules and other series of products. The latter is used to launch skin care products such as the Skin Beauty White Snow Muscle Flawless Whitening Series, the Anti-Aging GelNing Series and other special effect skin care products. The project construction period of both industrial parks is 3 to 5 years.

In the past year, the stock price of Katazai Has Risen from 267.51 yuan at the beginning of 2021 to 437.15 yuan at the end of the year, an increase of 63.76%. In the summer of 2021, the signature product of Katazai was also fried to 1600 yuan a grain, and the popularity of the rush was comparable to that of Maotai.

However, many investors still said that the net profit of Katazai was lower than expected.

According to the previously released third quarter report of 2021, as of September 30, 2021, the company's net profit was 2.011 billion yuan. Therefore, the single-quarter net profit achieved by Katazai in the fourth quarter of 2021 is expected to be about 400 million yuan. However, in the first three quarters, the net profit of Katazai was 565 million yuan, 550 million yuan and 896 million yuan respectively, that is to say, the net profit of Katazai was down 55.4% in the fourth quarter.

Shortly after the performance express was issued, Guosheng Securities issued a research report saying that it maintained the buy rating of Katazai. However, it was pointed out that there are still some risks in Katazai, including the decline in revenue growth; the decline in product gross margin due to rising raw material prices; the volume of daily chemical products falling less than expected; and the epidemic continues to affect overseas sales of Katazai.

At the same time, the entire Chinese medicine sector has frequently encountered favorable policies.

In 2021, a series of policies such as the lifting of restrictions on some Chinese medicines in the medical insurance catalogue, the end of the pilot project of Traditional Chinese medicine formula granules, the mild reduction in the collection and price of hubei proprietary Chinese medicines, and the guidance on medical insurance supporting the inheritance and innovative development of traditional Chinese medicine have been implemented.

According to Xiangcai Securities statistics, the number of new Chinese medicine drugs approved in 2021 will increase significantly, and the research and development of new Chinese medicine drugs is expected to enter a period of rapid development. In 2021, the State Food and Drug Administration approved a total of 12 new Chinese medicine drugs on the market, the number of which was 4 times that of 2020, a new high in five years. In 2021, 32 proprietary Chinese medicines were approved for clinical trials, including 25 new drugs of class 1 and 1 new drug of the original class 6.

In 2022, Chinese medicine is still favorable to the policy. On January 15, the State Administration of Traditional Chinese Medicine and the Office of the Leading Group for Promoting the Construction of the "Belt and Road" jointly formulated and issued the "Development Plan for Promoting the High-quality Integration of Traditional Chinese Medicine into the Belt and Road Initiative (2021-2025)" to encourage Chinese medicine enterprises to build brands and "go to sea".

In the secondary market, on January 20, the share price of Katazai zhen closed at 386.99 yuan, down 1.03%, with a total market value of 233.5 billion yuan.