The field of APIs has "turned over", and the performance of a large number of enterprises has increased significantly

【Pharmaceutical Network Market Analysis】 Recently, with the gradual liberalization of epidemic prevention and control, the pharmaceutical market has attracted much attention from the capital market, especially the performance of individual stocks in the API industry
.
Judging from the 2022 performance forecast disclosed by recent enterprises, the performance of many API companies has increased
significantly.
For example, Jincheng Pharmaceutical, which is mainly engaged in the research and development, production and sales of pharmaceutical intermediates, APIs, pharmaceutical preparations, big health products, synthetic biology products, as well as pharmaceutical intermediates and API CMO/CDMO services, recently disclosed that it is expected that the net profit in 2022 will increase by 150.
04% to 196.
34% year-on-year, or reach 270 million yuan to 320 million yuan
.
According to the announcement, during the reporting period, the net profit attributable to shareholders of listed companies achieved by Jincheng Pharmaceutical increased significantly compared with the same period of the previous year, mainly due to
the year-on-year increase in the sales revenue of the company's pharmaceutical intermediates, CMO/CDMO business and biological characteristic APIs.
In addition to Jincheng Pharmaceutical, a number of API companies also said that the annual performance
was driven by the sharp increase in net profit in the fourth quarter.
For example, APIs and intermediates enterprises mainly engaged in cardiovascular and cerebrovascular diseases, anti-senile dementia, digestive system, diabetic neuropathy, anti-pathogenic microorganisms (including β-lactam antibiotics, carbapenems semi-synthetic antibiotics and synthetic antibacterial, antifungal, antiviral) infections, central nervous system and other fields, East Asia Pharmaceutical achieved operating income of about 1.
18 billion yuan in 2022, a year-on-year increase of 65.
62%; The net profit attributable to shareholders of the listed company was about 104 million yuan, an increase of 51.
58%
over the same period last year.
According to the announcement, during the reporting period, the operating performance of East Asia Pharmaceutical increased significantly, mainly due to: (1) the company's new workshop of cefazoxime sodium intermediate was put into use in September 2021, and the production and sales of cefzoxime sodium intermediate in 2022 increased significantly compared with the same period of the previous year; (2) With the gradual recovery of terminal sales of drugs by downstream customers, the sales volume of some of the company's products increased compared with the same period of the previous year; (3) The company adopted a new sales strategy to develop the market and achieved results, and the sales volume and price of some products increased
compared with the same period of the previous year.
Xinnovo, which mainly produces vitamin C and caffeine, is expected to have a net profit attributable to shareholders of listed companies of 680 million yuan ~ 800 million yuan in 2022, a year-on-year increase of 114.
46% ~ 152.
31%.

Regarding the main changes in performance, Xinnovo said that during the reporting period, the company carried out various work in an orderly manner, continued to strengthen the development of international and domestic markets, and actively played the quality and market advantages of products; At the same time, benefiting from the growth of demand in the downstream functional beverage industry and other factors, the price of caffeine has risen and the number of sales has increased, and the sales revenue and gross profit level of caffeine products have increased significantly, driving the rapid growth
of the company's overall performance.
In addition, in November 2022, the Company completed the acquisition of Shiyao Shengxue, which was included in the scope of
the Company's consolidated statements.
The merger of Shiyao Shengxue has further improved the company's functional raw materials business segment, and the company's operating scale and profitability have been further improved
.
Shanhe Pharmaceutical, which produces pharmaceutical excipients, is expected to have a net profit attributable to the parent of 120 million yuan to 141 million yuan in 2022, a year-on-year increase of 34.
45% to 57.
98
%.
Sunward Pharmaceuticals said that during the reporting period, the company continued to expand cooperation with domestic pharmaceutical companies, achieved phased results in the consistency evaluation of national generic drugs and procurement with volume, made significant progress in import substitution projects, and benefited from factors such as increased downstream demand during the epidemic, and the company's overall profit level achieved rapid growth
.
Chemical API industry is one of the strategic pillars of China's pharmaceutical industry, after decades of development has formed a relatively complete industrial system, and has the characteristics of
large scale, low cost and high output.
Analysts said that the pharmaceutical industry is a key area of Made in China 2025 and strategic emerging industries, which is an important guarantee for promoting the construction of a healthy China, and in recent years, China has introduced a series of policies to support the development of the pharmaceutical industry, which also creates a good industrial environment
for the development of the chemical API industry.
In addition, some institutions said that the gross profit margin of APIs gradually recovered and the inflection point of performance began to appear, and the integration of API preparations entered the harvest period: it is recommended to pay attention to Huahai Pharmaceutical, Yifan Pharmaceutical, Minova, Propharmaceutical, Jincheng Pharmaceutical, Xinnovo, Tonghe Pharmaceutical, Yongan Pharmaceutical, Sitaili, Shanhe Pharmaceutical, etc
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.