html After the market on October 25, Lizhu Pharmaceutical Group Co., Ltd. (hereinafter referred to as " Lizhu Group ", 000513.SZ; 01513.HK), listed in both A+H shares, released its third quarter performance report. Data showed that the company's revenue in the first three quarters was 9.488 billion yuan, increased by 1.27% year-on-year, and net profit attributable to shareholders was 1.507 billion yuan, a year-on-year increase of 3.72%. single-view of the third quarter performance data, Lizhu Group performed outstandingly. The company's Q3 revenue was 3.186 billion yuan, a year-on-year increase of 1.66%, and increased by . However, in the second quarter, the company's revenue was negative; the net profit attributable to shareholders during the period was 489 million yuan, a year-on-year increase of 25.87%, which was the best result in the past six quarters. The day after the release of the financial report of
, Lizhu Group's A shares rose nearly 9% during the session, closing up 6.14% to 34.79 yuan; the highest intraday increase of H shares was 9.09%, closing up 6.88% to 21.75 Hong Kong dollars.
It should be noted that, stimulated by the news that Shanghai initiated the recombinant new coronavirus vaccine for inhalation (type 5 adenovirus vector) to strengthen immunity, the vaccine concept overall rose sharply on October 26, and Lizhu Group was also among them. The positive industry and the improvement in performance have led to the rise in stock prices.
net profit growth rate in the third quarter hit the best in the six quarters, and interest income has made great contributions to
Compared with the second quarter of 2022, it is simply a matter of ice and fire. Lizhu Group's Q2 revenue fell 2.15% year-on-year to 2.824 billion yuan, and its net profit attributable to shareholders fell 14.47% year-on-year to 464 million yuan. By the third quarter, the company's revenue and net profit growth rate both returned to positive, and the net profit growth rate was the highest since Q2 2021.
Titan MediaHTM3App Map; Data source: Wind
Lizhu Group has four major business segments, of which chemical preparation products are the largest source of revenue, generating revenue of 1.898 billion yuan in Q3, accounting for 59.57% of the total revenue, but this pillar business segment had negative growth in Q3, down 6.82% year-on-year. In the first two quarters of this year, both had positive growth, 10.90% and 14.49% respectively.
chemical preparation products are divided into five parts: digestive tract products, sex hormone products, mental products, anti-infection products and other five parts. The digestive tract products in are the core product line, with revenue of 865 million yuan in the third quarter, a year-on-year decrease of 17.93%. 's ipprazole series (trade name: Yilian) is the main product of Lizhu Group's digestive tract products. The medical insurance catalog was successfully negotiated in 2021, but the price dropped from 156 yuan (10mg/pin) in 2019 to 71 yuan (10mg/pin), a decrease of 54%. It now seems that the impact of medical insurance price reduction on this product still exists, and the effectiveness of "price for volume" has not yet been fully demonstrated.
The second largest revenue sector of the company is raw materials and intermediates, which generated revenue of 770 million yuan in Q3, accounting for 24.17% of the total revenue, with a growth rate of 11.10%, which is less than the growth rate in the previous two quarters.
In the third quarter, Lizhu Group's fastest growing product segment was traditional Chinese medicine preparation products, with revenue increasing by 59.15% year-on-year to 339 million yuan. The 2022 interim report shows that the cost of this product sector has dropped by 19.60%, and the continued decline in costs can indeed help the business achieve better growth. Although the growth rate is beautiful, Chinese medicine preparation products only account for 10% of the total revenue, and the effect of driving the company's overall growth is not great. It is sad that Lizhu Group first obtained large revenues with traditional Chinese medicine injections. With the decline of this market, the proportion of revenue in the pharmaceutical preparation product sector has decreased and gradually declined.
Diagnostic reagents and equipment products, which accounted for 4.9% of the revenue of Lizhu Group, generated revenue of 156 million yuan in Q3, a year-on-year decrease of 3.11%, and performed worse than in the second quarter. It is conceivable that this sector has declined a lot due to the centralized procurement of nucleic acid detection reagents for the new crown, because among the diagnostic reagents and equipment product lines, Lizhu Group has only two products on the market, one of which is the new crown virus antigen detection kit.
Titanium Media App chart; Data source: Financial Report
Overall, the revenue growth of Lizhu Group's Q3 product sectors is not outstanding, especially the growth of the first two sectors is not even as good as Q1 and Q2. It is not easy for the company's revenue growth rate to turn positive under this situation. At the same time, in this quarter, the three major expense rates of Lizhu Group's sales, management and R&D were 31.35%, 6.28%, and 13.32%, respectively, while in the second quarter, the three data were 28.22%, 5.51%, and 9.43%, respectively.
In the third quarter, Lizhu Group performed mediocrely in open source, but took generous measures in spending.Under this circumstance, Lizhu Group also achieved a significant jump in net profit compared with the previous one, and the growth rate was much higher than the expansion of revenue scale. One of the important reasons is that interest income increased significantly during the reporting period. If Lizhu Group's interest income in Q3 is less than 99 million yuan, the company's net profit growth rate will not turn positive.
According to the financial report, in the first three quarters of 2022, Lizhu Group's interest income was 256 million yuan, compared with 96 million yuan in the same period last year, a year-on-year increase of 267%. Specifically in the third quarter, interest income was 155 million yuan, while interest income in Q1 and Q2 was 62 million yuan and 37 million yuan respectively.
Not only that, Lizhu Group's Q3 interest income is higher than previous quarterly data. After all, the company itself is very "rich". As of the end of the third quarter, Lizhu Group's cash and cash equivalents were 9.578 billion yuan, a net increase of 453 million yuan from the end of the third quarter last year. The layout of the
pipeline is "large and comprehensive", but there are not many that can be supported by performance
. Returning to the business itself of Lizhu Group and spreading the stall is its main "achievement" in recent years. When is expanding its business territory, its original main products are constantly facing new challenges, while most of the products in the new track are in the R&D stage, which cannot yet add color to financial data.
is the core product ipprazole series. From 2018 to 2020, Lizon Group's ipprazole series achieved sales revenue of 504 million yuan, 975 million yuan and 1.77 billion yuan respectively. The ipprazole series is the main product that drives the company's performance. However, in addition to the medical insurance price reduction factor, this product also faces fierce industry competition, including competition for centralized procurement targets and similar products.
According to statistics from CICC Qixin, the number of patients with peptic ulcer in China is expected to increase from 70.34 million in 2015 to 73.22 million in 2030. Proton pump inhibitors (PPI) are the preferred drug for peptic ulcers, and their therapeutic effect can reach an ulcer healing rate of more than 90%. Currently, proton pump inhibitors account for more than 90% of the clinical application of peptic ulcers. CICC Qixin expects that by 2030, the market size of China's proton pump inhibitors will reach 36.51 billion yuan.
The self-developed ipprazole sodium by Lizhu Group is the second generation innovative drug product of PPI. At present, the first generation product omeprazole , known as the " gastric magic medicine", still ranks first in the terminal products of public medical institutions. In the seventh batch of national centralized procurement conducted in July this year, 28 companies participated in the bidding with omeprazole, and Lizhuang Group also participated in the bidding with its own omeprazole products. No Lizhuang Group among the final 10 winning companies. The winning bid for
also leads to price reduction, but the company can gain market share. What is then tested is the company's control over the time point and sales strategy of the product "price for volume". If you fail to get a centralized procurement, it means you are directly blocked on the outside of the runway.
In addition, the top three drugs in the sales of domestic oral proton pump inhibitors in 2021 are rabeprazole , esomeprazole and esprazole. The competitors of esprazole performed stronger in the same track. As a new acid inhibitor for the treatment of peptic ulcers, potassium ion competitive acid blocker (P-CAB) has begun to emerge, and Kelun Pharmaceutical , Renfu Pharmaceutical , and Wasson Pharmaceutical have all occupied the place in advance.
At present, Lizhu Group has also extended its tentacles to the biopharmaceuticals, microspheres, platforms. In the field of biopharmaceuticals, the most important thing is the recombinant novel coronavirus fusion protein vaccine ("V-01"). On September 21, the V-01 vaccine was officially launched in Zhuhai and is continuing to promote clinical practice in other countries and regions. The long and expensive R&D project of is finally about to start generating revenue, but it seems self-evident how much market can , the new crown vaccine "late" in the past two years, still share.
Another biological drug approved for domestic market last year is recombinant human vesitropin for injection, and the remaining five drugs under development are in the R&D investment stage. There are 7 high-barrier complex preparations such as microspheres and other microspheres under development in Lizhu Group, and there are no approved products on the market. Currently, there is also "in and no exit".
's "column" is full of dangers, the new product line is still hungry, and the new crown vaccine that has entered is too slow again. Although Lizhu Group is not short of money, it lacks imagination in the short term.
(This article was first published on Titanium Media App Author丨Yang Yaru Editor丨Sun Cheng)
