Zhifei Biotech’s revenue exceeded 30 billion in 2021
Zhifei Biotech’s revenue in 2021 exceeded 30 billion, and the high growth momentum continued in the first quarter report. Among them, the quadrivalent HPV vaccine batch 2.11 million doses were issued, an increase of nearly 70%, and 4.83 million doses of the nine-valent HPV vaccine were issued in batches. Zhifei Biotech’s revenue in 2021 exceeded 30 billion. Zhifei Biotech's revenue in 2021 exceeded 30 billion1
On April 28, Chongqing Zhifei Biological Products Co., Ltd. (hereinafter referred to as "Zhifei Biotech") disclosed its financial report. In 2021, Zhifei Biotech's revenue exceeded 30 billion yuan, a year-on-year increase of 101.79%, benefiting significantly from its self-developed COVID-19 vaccine and agent product HPV vaccine. However, as of March 31, the company's accounts receivable reached 16.781 billion yuan.
With the emergency use of the new crown vaccine, independent product revenue increased by 707.61% year-on-year
According to the financial report, in 2021, Zhifei Biotech achieved revenue of 30.652 billion yuan, a year-on-year increase of 101.79%; attributable to The net profit of shareholders of listed companies was 10.209 billion yuan, a year-on-year increase of 209.23%. From the perspective of revenue composition, the company's agent products achieved revenue of 20.931 billion yuan, a year-on-year increase of 49.99%, which is still its "ballast stone." In 2021, due to the emergency use of the new crown vaccine, its independent products achieved revenue of 9.697 billion yuan, a year-on-year increase of 707.61%.
In terms of independent products, the recombinant new coronavirus protein vaccine (CHO cells) developed by Zhifei Biotech and the Institute of Microbiology of the Chinese Academy of Sciences was included in emergency use in March 2021. According to the financial report, as of the report disclosure date, the recombinant COVID-19 vaccine was approved for conditional marketing in 2022 and served as a sequential booster shot, providing protection for more than 100 million people. In the financial report, Zhifei Biotech frankly admitted that the new crown vaccine is one of its performance drivers.
It is understood that Anhui Zhifei Longkoma Biopharmaceutical Co., Ltd. is the applicant for the recombinant new coronavirus protein vaccine and is also a wholly-owned subsidiary of Zhifei Biotech. In the financial report, an introduction to the "major subsidiaries and joint-stock companies that affect more than 10% of the company's net profit" shows that Anhui Zhifeilongkoma Biopharmaceutical Co., Ltd. achieved revenue of 8.419 billion yuan in 2021. In this part of the introduction in 2020, Beijing Zhifei Luzhu Biopharmaceutical Co., Ltd. is a joint-stock company that affects more than 10% of Zhifei Biotech’s net profit, and only achieved revenue of 1.199 billion yuan that year. It is obvious that the increased volume of COVID-19 vaccines has become the backbone of Zhifei Biotech’s independent product revenue.
HPV vaccine is ramping up in volume, with the largest supplier accounting for nearly 90% of its purchases.
In terms of agent products, Merck is the main supplier of Zhifei Biotech. In 2021, Merck's products represented by Zhifei Biotech mainly include nine-valent HPV vaccine, pentavalent rota vaccine, 23-valent pneumonia vaccine, and inactivated hepatitis A vaccine.
Among them, 8,802,500 doses of the quadrivalent HPV vaccine were issued in batches throughout the year, with a growth rate of 21.93%; 10,206,168 doses of the nine-valent HPV vaccine were issued in batches throughout the year, with a growth rate of 101.45%; and the pentavalent rotavirus vaccine was issued in batches throughout the year. The batch release volume was 7,308,624 units, a growth rate of 83.02%; the annual batch release volume of 23-valent pneumonia vaccine was 1,475,653 units, a growth rate of 208.40%; the annual batch release volume of inactivated hepatitis A vaccine was 807,151 units, a growth rate of 67.44%.
The financial report shows that the total purchase amount of its top five suppliers is 17.202 billion yuan, of which the purchase amount of supplier one is 16.562 billion yuan, accounting for 88.04% of the total annual purchases. %. Industry speculation suggests that one of the suppliers may be Merck.
Brokerages warned of the risk of the COVID-19 vaccine not being as good as expected, and the company’s accounts receivable reached 16.781 billion yuan
Southwest Securities analyzed that, excluding the increase in sales of the COVID-19 vaccine, it is expected that Zhifei Biotech will be in 2022-2024 The annual net profits attributable to the parent company were 7.3 billion yuan, 11.1 billion yuan and 12.6 billion yuan respectively, corresponding to PEs of 21, 14 and 12 times respectively, maintaining a "buy" rating. However, Southwest Securities Risk Warning: There may be risks of the COVID-19 vaccine volume being lower than expected, R&D failure, and product price reductions.
The reporter noticed that in the first quarter, Zhifei Biotech achieved revenue of 8.841 billion yuan, a year-on-year increase of 125.16%. However, by the end of the reporting period, its accounts receivable had reached 16.781 billion yuan. Zhifei Biotech's revenue in 2021 exceeded 30 billion2
As the exclusive agent of Merck in China, the reality that "one dose of the nine-valent HPV vaccine is hard to find" continues to drive Zhifei Biotech (300122.SZ ) performance has soared. The annual report shows that with the continued increase in sales of self-developed products and agent HPV vaccines, the company's net profit will surge by 209.23% in 2021.
Of course, the performance of the company's self-developed products cannot be ignored. Its revenue share has increased significantly from 7% last year to 31.64%, a considerable growth rate. Perhaps because of this, many public funds chose to increase their positions in the first quarter. Among them, China Europe Medical and Health, managed by "top-tier" Gulen, increased its position in Zhifei Biotech for 15,004,200 shares.
The batch issuance volume of nine-valent HPV vaccine doubled
On the evening of April 27, Zhifei Biotech disclosed its 2021 financial report, which showed that it achieved revenue of 30.652 billion yuan last year, a year-on-year increase of 101.79%; Net profit attributable to the parent company was 10.209 billion yuan, a year-on-year increase of 209.23%; non-net profit attributable to the parent company was 10.184 billion yuan, a year-on-year increase of 206.48%.
Among them, the nine-valent HPV vaccine represented by Zhifei Biotech increased by 101.45%, and the batch volume exceeded 10 million, reaching 10.206168; the 23-valent pneumonia vaccine increased by 208.4% year-on-year, and the batch volume was 1.475653 million .
Source: Zhifei Biological Annual Report
Moreover, the high growth momentum in the first quarter report continued, of which 2.11 million quadrivalent HPV vaccines were issued in batches, an increase of Nearly 70%; 4.83 million nine-valent HPV vaccines were issued in batches, an increase of nearly 280%; 3.24 million pentavalent rotary vaccines were issued in batches, an increase of nearly 220%; 480,000 23-valent pneumonia vaccines were issued in batches, an increase of over 100%.
Overall, agent products achieved revenue of 20.931 billion yuan, which continues to strongly support the company's performance. This year, the company's purchases from Merck reached 11.517 billion yuan.
According to the "Supply, Distribution and Drug Promotion Agreement" signed by the company and Merck at the end of 2020, it plans to develop HPV vaccine, pentavalent rotavirus vaccine, 23-valent pneumonia vaccine and inactivated hepatitis A vaccine. The basic purchase amounts of products will be adjusted and renewed. Among them, the purchase amounts of HPV vaccines from 2021 to 2023 are 10.289 billion yuan, 11.557 billion yuan, and 6.260 billion yuan respectively. The purchase amounts of the remaining three major vaccine products in 2022 are 1.105 billion yuan, 1.89 billion yuan, respectively. billion and 90 million yuan.
Of course, this is also related to Zhifei Biotech’s continued expansion of its sales network. The annual report shows that Zhifei Biotechnology currently has a professional marketing team of nearly 3,000 people, with 2,817 sales personnel in 2021, a year-on-year increase of 48%. The marketing network covers 31 provinces, autonomous regions, and municipalities directly under the Central Government, more than 300 cities, and more than 2,600 districts and counties across the country. , more than 30,000 primary health service points (township vaccination points, community outpatient clinics).
Revenue from independent products increased by 706%. Public funds increased their holdings by more than 8.5 billion yuan in the first quarter.
In addition to the popularity of agent products, Zhifei Biotechnology’s independent products also performed well, contributing to its revenue. Revenue was 9.697 billion yuan, a year-on-year increase of 706%, accounting for 31.64% of total revenue. In 2020, independent products only achieved revenue of 1.2 billion yuan, accounting for 7.91%.
Proportion of revenue from Zhifei Bio’s independent products
Among them, the batch release volume of AC polysaccharide vaccine increased from zero to 223,098, and the ACYW135 polysaccharide vaccine reached 695 Thousands of branches.
Regarding the new coronavirus vaccine that the market is paying more attention to, in March 2021, the company's recombinant new coronavirus protein vaccine (CHO cells) (Zhikweide) was included in the emergency use to serve the national mass immunization plan. Implemented and approved for emergency use in many countries, it has provided protection to more than 100 million people. This year, the company's recombinant COVID-19 vaccine was approved for marketing with conditions and used as a sequential booster shot. It was also recently included in the "List of Novel Coronavirus Vaccine Products Available for Export" and will be available for export to support the international fight against the epidemic.
The annual report also shows that the company’s tuberculosis product matrix is ??ushering in commercialization, with progress in the previously approved Mycobacterium tuberculosis fusion protein (EC) (Eka) and Mycobacterium vaccae for injection (Ika) Successfully, Weka has won bids and been listed on the Internet in 25 provincial units, and bidding and product promotion work in other regions are also actively advancing.
Currently, Zhifei Biotechnology has 29 projects under research, and a number of self-developed products have made phased progress. Among them, three products under development, freeze-dried human rabies vaccine (Vero cells), Sonneshi dysentery bivalent conjugate vaccine, and ACYW135 group meningococcal conjugate vaccine, have entered Phase III clinical trials; component diphtheria-tetanus pertussis vaccine, inactivated Two rotavirus vaccine products under development have entered Phase I clinical trials.
This is also due to the company’s continued investment in research and development. In 2021, Zhifei Biotech's R&D investment reached 814 million yuan, a year-on-year increase of 69.38%, and the number of R&D personnel increased from 414 in 2020 to 566, a year-on-year increase of 36.71%.
In addition, as a major holding of many public funds, in the first quarter of this year, Zhifei Biotechnology received increased holdings from a number of public funds including the "top-tier" Gulen. According to calculations by Titanium Media APP, The total market value of the increased holdings exceeds 8.5 billion yuan.
Source of CEIBS Healthcare’s first-quarter positions: CEIBS Healthcare’s first quarter report
The first-quarter report shows that CEIBS Healthcare, managed by Gulen, added positions to Zhifei Biotech 15.0042 million shares. She said: "Excellent companies will still recover from the fluctuations and return to the growth trend." "The policy generally continues a steady and positive trend, guiding the industry to have real innovation, clinical value, and provide cost-effective products and services." The orientation of service transformation has not changed.”
At the same time, some active equity funds in the industry are also investing in Zhifei Biotech, such as Dongfanghong Qiheng, managed by Zhang Feng, general manager of Dongfanghong Asset Management. Invesco Great Wall Prosperity Enterprising, managed by Li Jin, and Fuguo Innovation Trends, managed by Li Yuanbo, both invested more than 1 million shares in Zhifei Biotech.
As of the first quarter report of 2022, the China-Europe Medical and Health Hybrid Fund and the China Merchants National Securities Biomedical Index Fund managed by Gulen ranked the fifth and seventh largest shareholders. China Merchants National Securities Biomedicine A, managed by China Merchants Fund Hou Hao, holds 11.18 million shares of Zhifei Biotech, an increase of 4.17 million shares compared with the same period last year. Zhifei Biotech's revenue in 2021 exceeded 30 billion3
Zhifei Biotech (300122.SZ), helmed by "Vaccine King" Jiang Rensheng, delivered two report cards that exceeded market expectations.
On the evening of April 27, Zhifei Biotech released its 2021 annual report and 2022 first quarter report. Last year, the company achieved revenue of 30.652 billion yuan, net profit of 10.209 billion yuan, and non-net profit of 10.184 billion yuan, representing year-on-year increases of 101.79%, 209.23%, and 206.48% respectively.
In the first quarter report of 2022, Zhifei Biotech achieved revenue, net profit, and non-net profit of 8.841 billion yuan, 1.923 billion yuan, and 1.896 billion yuan respectively, up 125.16%, 104.95%, and 101.15% year-on-year respectively. %. In the first quarter, the company’s average daily revenue was nearly 100 million yuan.
At the end of 2021, the company’s actual controller Jiang Rensheng and its persons acting in concert held 899 million shares, accounting for 56.21% of the total share capital. In the first quarter of 2022, Jiang Rensheng reduced its holdings by 29 million shares, and the family's shareholding ratio dropped to 54.42%. The 2022 Hurun Global Rich List released on March 17 shows that the Jiang Rensheng family has become the richest man in Chongqing with a wealth of 105 billion yuan.
A reporter from Times Weekly noticed that China Europe Healthcare, managed by Gülen, reduced its position by 839,900 shares in the fourth quarter of last year and increased its position by 458,700 shares to 15,004,200 shares in the first quarter; China Merchants National Securities Biomedicine also increased its position. 801,500 shares to 11,819,100 shares. It is worth mentioning that Private Equity Yingshui Investment Fund No. 9 and No. 13 made their first purchases in the first quarter, holding 11.717 million shares and 9.966 million shares respectively. Their total shareholding has surpassed China Europe Medical Health and became the largest institutional shareholder.
The outstanding performance did not make the secondary market excited. On April 28, Zhifei Biotechnology closed at 93.72 yuan per share, down 3.84%.
Revenue from independent products exceeded 30% for the first time
Zhifei Biotech was founded in 1995 and listed on the GEM in 2010. It is mainly engaged in the research and development, production, sales, distribution and import of vaccines and biological products. exit. The company's products include independent products and agent products. In 2021, independent products accounted for more than 30% of revenue for the first time, reaching 31.64%.
In addition, Zhifei Biotech has 26 independent research and development projects. Soochow Securities stated that Zhifei Biotech is promoting the promotion and access of EC (recombinant Mycobacterium tuberculosis fusion protein) and Microcard, and is expected to win bids in more than 90% of domestic provinces in the first half of 2022. Freeze-dried human rabies vaccine is about to be ready for production, and quadrivalent influenza vaccine and freeze-dried triple vaccine are expected to be ready for production in 2022.
In 2021, the company’s independent products achieved revenue of 9.697 billion yuan, a year-on-year increase of 707.61%, and the gross profit margin was as high as 90.12%. It is worth mentioning that, except for the ACYW135 polysaccharide vaccine, which has a 14.68% increase in batch release volume of the company’s own products on the market, the batch release volume of AC conjugate vaccine and Hib vaccine decreased by 12.19% and 16.03% respectively.
Regarding the decline in the batch release volume of independent products and the surge in revenue of independent products, a reporter from Times Weekly called Zhifei Biotech on the morning of April 28, but the relevant personnel did not give a clear reply.
Zhifei Biotech’s performance growth in 2021 also comes from the expansion of its sales team. During the reporting period, its sales expenses were 1.834 billion yuan, a year-on-year increase of 53.22%; there were 2,817 sales personnel, a year-on-year increase of 48%. According to Flush Data, 11 vaccine concept companies that have disclosed their 2021 performance reports have an average sales expense of 600 million yuan, with Zhifei Biotech ranking first in sales expenses.
During the reporting period, Zhifei Biotech invested 814 million yuan in R&D, accounting for only 2.66% of revenue. According to the above statistics, the average R&D investment of vaccine concept companies is 400 million yuan, accounting for 12.5% ??of revenue.
Over-reliance on agent products
Zhifei Biotechnology has successively delivered performance that exceeded market expectations, which is related to agent products. In 2021, agency products achieved revenue of 20.931 billion yuan, a year-on-year increase of 68.28%, accounting for 68.29% of total revenue. The gross profit margin of this business is 29.98%.
At present, the company mainly represents Merck & Co. (MRK.NYSE) vaccines, including HPV vaccine, pentavalent rota vaccine, 23-valent pneumonia vaccine and inactivated hepatitis A vaccine. In 2021, the number of vaccine batches issued by agents has increased to varying degrees.
In the first quarter of 2022, the number of batches of agent products will continue to increase. The quadrivalent HPV vaccine was issued in batches of 2.11 million, an increase of nearly 70%; the nine-valent HPV vaccine was issued in batches of 4.83 million, an increase of nearly 280%; the pentavalent rotary vaccine was issued in batches of 3.24 million, an increase of nearly 220%; the 23-valent pneumonia vaccine was issued in batches 480,000 units were issued in batches, an increase of over 100%.
Extending the timeline, thanks to the exclusive agent of Merck’s vaccine, Zhifei Biotech’s revenue and net profit grew rapidly in 2018, with the highest growth rates in the past decade, both exceeding 200%. From 2018 to 2020, the revenue share of Zhifei Biotechnology’s agent products increased from 74.37% to 91.87%, becoming the company’s main source of revenue.
According to the announcement, in the cooperation agreement between Zhifei Biotech and Merck from 2021 to the first half of 2023, Merck’s basic procurement amounts are 11.61 billion yuan, 12.94 billion yuan, and 6.98 billion yuan respectively. , among which HPV vaccine procurement accounts for the highest proportion, accounting for 10.289 billion yuan, 11.557 billion yuan, and 6.26 billion yuan respectively. It is expected to start a new renewal negotiation at the end of 2022.
However, Xiao He is also a success, and Xiao He is also a failure. On April 14, the World Health Organization (WHO) stated that a single dose of HPV vaccine is as effective as a two- to three-dose regimen. This news triggered market shocks. Zhifei Biotech crashed that day, and its market value shrank by 14.2% in one day. 185.6 billion yuan.
Southwest Securities research report shows that the accelerated growth of HPV vaccine has driven the rapid growth of Zhifei Biotech’s traditional vaccine business.
According to the batch issuance data and survey data released by the China Institute of Inspection and Quarantine, in the first quarter of 2022, the company's quadrivalent HPV vaccine was approved for issuance in 12 batches, with an estimated batch issuance volume of 2.3 million to 2.5 million; the nine-valent HPV vaccine was approved 20 batches will be released, and the estimated batch release volume is 4.2 million-4.5 million.
At present, the overall supply of domestic HPV vaccines still exceeds demand, and the penetration rate is still low. Southwest Securities research report stated that Zhifei Biotechnology’s agent vaccine has obvious advantages over the domestic bivalent HPV vaccine in first- and second-tier cities, and it is expected that the overall sales volume in 2022 will be more than 25 million. Moreover, the domestic quadrivalent/nine-valent HPV vaccine is still in the clinical stage and is expected to be launched one after another after 2025, which will have little impact on the company's competitive landscape.