Investment Rating - The report gives a "Buy" rating for the company with a target price of 16.50 RMB per share [125] Core Views - The company's revenue and profit have shown steady growth, with a slight pressure on performance in 2023 [18] - The company's self-developed products in the sexual health sector are rapidly expanding, with significant sales growth in 2022 and 2023 [120] - The company's transition of the gastrointestinal drug "He Wei Zheng Chang Wan" to a self-owned product is expected to open up growth opportunities [123] - The company's innovative drug CKBA for vitiligo has entered Phase II clinical trials, showing rapid progress [127] Company Overview - The company, Guangdong Tainkang Pharmaceutical Co Ltd, was founded in 1999 and focuses on R&D, production, sales, and distribution of pharmaceutical products and medical devices [13] - The company went public on the Shenzhen Stock Exchange's ChiNext board on March 29, 2022 [122] Revenue and Profit Trends - The company's revenue grew from 514 million RMB in 2018 to 783 million RMB in 2022, with a slight decline to 761 million RMB in 2023 [32] - Net profit attributable to shareholders increased from 74 million RMB in 2018 to 175 million RMB in 2022, but decreased to 160 million RMB in 2023 [32] - In Q1 2024, the company's revenue was 189 million RMB, a year-on-year decrease of 2.41%, and net profit was 45 million RMB, a year-on-year decrease of 12.54% [32] Product Segments Sexual Health Drugs - The company's sexual health drugs, including "Ai Ting Jiu" (Dapoxetine Hydrochloride Tablets) and "Ai Ting Wei" (Tadalafil Tablets), have shown rapid sales growth [120] - In 2022, the sexual health drug segment generated 229 million RMB in revenue, a year-on-year increase of 48.48%, with "Ai Ting Jiu" sales exceeding 200 million RMB [120] - In 2023, the sexual health drug segment's revenue was 225 million RMB, a slight decrease of 1.66% year-on-year [101] Gastrointestinal Drugs - The company's gastrointestinal drug "He Wei Zheng Chang Wan" saw sales increase from 129 million RMB in 2018 to 204 million RMB in 2023, with a CAGR of 9.6% [85] - The company signed a technology transfer agreement with Thai Liwanshan Pharmaceutical Factory to make "He Wei Zheng Chang Wan" a self-owned product, which is expected to boost future sales [35] Ophthalmic Drugs - The company's ophthalmic drug "Woliting" (Iodized Lecithin Tablets) has maintained stable sales, with revenue of 184 million RMB in 2023 [5] - The gross margin of "Woliting" has increased from 32.29% in 2018 to 41.04% in 2023 [5] R&D and Innovation - The company has established three major R&D technology platforms: functional excipients and nano-drug delivery, biopharmaceuticals, and generic drug development [27] - The company's R&D expenses increased from 20 million RMB in 2018 to 63 million RMB in 2023, with a year-on-year growth of 55.69% in 2023 [27] - The company's innovative drug CKBA for vitiligo has entered Phase II clinical trials, with the first patient enrolled in November 2023 [106] Market Potential Sexual Health Market - The anti-ED and anti-PE drug market in China exceeded 6 billion RMB in 2022, with rapid growth expected in the future [68] - The company's "Ai Ting Jiu" (Dapoxetine Hydrochloride Tablets) is the first generic version in China, with sales exceeding 200 million RMB in 2022 [120] Gastrointestinal Market - The gastrointestinal drug retail market in China reached 26.94 billion RMB in 2020, with a CAGR of 7.4% from 2017 to 2020 [53] - The company's "He Wei Zheng Chang Wan" ranked third in the Chinese urban retail pharmacy market for stomach drugs in the first half of 2023 [57] Ophthalmic Market - The ophthalmic drug market in China reached nearly 17 billion RMB in 2021, with the market for eye vascular disease treatment drugs approaching 4 billion RMB [39] Vitiligo Market - There are approximately 14 million vitiligo patients in China, with a significant unmet medical need for effective treatments [127] - The company's CKBA drug for vitiligo has a unique mechanism of action and is expected to become a new growth driver if successfully launched [116] Financial Projections - The company's revenue is expected to grow to 966 million RMB in 2024, 1.165 billion RMB in 2025, and 1.377 billion RMB in 2026, with a CAGR of 18% [121] - Net profit attributable to shareholders is projected to be 234 million RMB in 2024, 309 million RMB in 2025, and 388 million RMB in 2026 [121] - The company's EPS is expected to be 0.55 RMB in 2024, 0.73 RMB in 2025, and 0.91 RMB in 2026 [121]
泰恩康：两性健康药物快速放量，胃肠用药有望迎来拐点