Dong'e Ejiao released the 2021 annual report forecast, the reporting period to achieve a net profit attributable to the mother of 428 ~ 475 million yuan, an increase of 888% ~ 997% year-on-year, deduction of non-attributable net profit of 345 ~ 383 million yuan, an increase of 974% ~ 1071%, the performance recovery in line with expectations.
1⃣ It is expected that the full-year revenue will recover significantly, and the net profit will be affected by asset impairment. 21Q4 Company achieved a net profit attributable to the mother of about 127 million to 174 million yuan, an increase of 98% to 172% year-on-year. It is estimated that the company will achieve operating income of 4.8 billion yuan in 2021, and the net profit within 500 million yuan is mainly affected by asset impairment, and the cumulative impairment in the first three quarters has been 170 million yuan, and the annual impairment is expected to be close to 500 million yuan.
2⃣ The report continued to recover, and the company's operations were on the right track. 20Q3 net profit turned positive, 20Q4 channel inventory cleared to normal water level, 20Q3 ~ 21Q3 revenue, operating net cash flow improved significantly, accounts receivable fell from 2.273 billion in 19Q3 to 267 million in 21Q3, 21Q1 and 21Q3 added 220 million / 150 million advance receipts, and the operating indicators improved significantly. With the asset impairment risk cleared, performance flexibility is expected to be achieved in 2022.
3⃣ Equity incentives are expected to land and improve the company's net profit margin indicators. China Resources pharmaceutical companies Jiangzhong Pharmaceutical, China Resources Sanjiu and China Resources Shuanghe have all successively issued equity incentives in 21Q4, and only Dong'e Ejiao has not been released. The company has 10.04 million shares in the special securities repurchase account for equity incentives, and the management change is expected to be released. With reference to the assessment indicators of China Resources 39 and Jiangzhong Pharmaceutical, there will be ANE assessment, which requires the company to quickly restore the net profit margin to reach.
It is estimated that the company's net profit attributable to the mother in 2021-2023 will be 440 million yuan, 1.22 billion yuan and 1.49 billion yuan, respectively, corresponding to the growth rate of 915.2%, 178.5% and 21.4%, respectively; EPS is 0.67 yuan, 1.87 yuan and 2.27 yuan, and the corresponding PE is 56.2x, 20.2x and 16.6x, respectively.