\u3000\u3000 Guangzhou Jet Bio-Filtration Co.Ltd(688026) (688026)
Report summary
Guangzhou Jet Bio-Filtration Co.Ltd(688026) focuses on the field of disposable scientific research consumables, and its performance has continued to grow rapidly for many years. Founded in 2001, the company is one of the first enterprises in China to produce disposable plastic consumables for biological laboratories. It mainly provides scientific research consumables, equipment and reagents for cell culture and liquid transfer for downstream universities, research institutes, pharmaceutical enterprises and other customers. There are thousands of products. Guangzhou Jet Bio-Filtration Co.Ltd(688026) routine business has developed rapidly, with an operating revenue of 248 million in 2019 and a compound growth rate of 23% in 2013-19. After the outbreak of covid-19 epidemic, the company’s demand for protective and liquid treatment consumables surged, and 21q1-q3 achieved a revenue of 632 million, with a year-on-year increase of 67.44%, of which the revenue of anti epidemic and anti epidemic related consumables accounted for about 53.84%.
There is a strong market demand for scientific research consumables, and domestic brands are expected to quickly replace them with covid-19. 1. China’s disposable plastic consumables market reached 10 billion yuan, and the industry maintained a rapid growth of nearly 15%. With the vigorous development and rapid expansion of the life science industry, the scientific research consumables market has expanded rapidly. According to Sullivan data, the global disposable plastic consumables market for life biology laboratories will be about US $12.11 billion in 2020 and is expected to reach US $14.3 billion in 2024; Among them, the scale of China’s market will reach 10.03 billion yuan in 2020 and is expected to reach 17.3 billion yuan in 2024. 2. Covid-19 epidemic has caused insufficient supply of foreign brands, and domestic consumables have ushered in a historic opportunity of import substitution. The R & D barrier of scientific research consumables mainly lies in the modified technology and processing technology. The first mover advantage of imported brands is significant. In 2018, the localization rate of scientific research consumables in China was only 5%. After the outbreak of covid-19 epidemic, the supply of foreign manufacturers was cut off and delayed, and Chinese industrial customers faced the problem of shortage. They began to reassess the value of domestic stable supply chain, and the demand for domestic consumables increased significantly. Covid-19 epidemic has a significant catalytic effect on the localization process of scientific research consumables, giving domestic brands a once-in-a-lifetime development opportunity.
Enrich SKU + release of new capacity + acceleration of internationalization, and the performance is expected to achieve sustained and rapid growth. 1. Continue to launch innovative products to meet the needs of more customers. After years of R & D accumulation, the performance of the company’s products is comparable to that of foreign brands. At the same time, the company continues to develop new series of consumables. In the future, it is expected to continue to consolidate the leading position in the scientific research market and continuously open the industrial end market. 2. The new plant is about to land, and the release of production capacity drives the growth of performance. The company’s raised investment plant will be completed in June this year. If the convertible bond construction project is completed, it is expected to contribute about 287 million revenue in 23 years, which is expected to provide sufficient impetus for performance growth. 3. ODM business is deeply bound to high-end customers, and independent brands speed up going to sea. Over the years, the company has undertaken the OEM business of foreign brands such as VWR and thermo, and its product strength has been recognized by top customers in the industry. In recent years, the company has made efforts to build its own brand market influence and actively expand high-quality customers. It is expected to continue to open the high-end market with the opportunity of covid-19 in the future. After the epidemic, we expect that import substitution will continue to accelerate, and the company is expected to maintain a high growth trend.
Profit forecast and investment suggestions: we estimate that the company’s revenue from 2021 to 2023 will be 854, 1151 and 1525 million yuan, with a year-on-year increase of 69.39%, 34.84% and 32.49%, and the net profit attributable to the parent company will be 196, 263 and 343 million yuan, with a year-on-year increase of 50.66%, 32.52% and 37.55%, corresponding to EPS of 180, 238 and 328. At present, the company’s share price corresponds to 29 times PE in 2022. Considering that the company is the leader in China’s scientific research consumables industry with significant competitive advantage and is expected to maintain a high growth trend in the future, combined with the valuation analysis of comparable companies, we believe that the reasonable valuation range of the company is 40-45 times PE in 2022, which is covered for the first time and given a “buy” rating.
Risk tips: the risk of new product research and development, the risk of intensified market competition, the risk of lower than expected sales growth, the risk of deviation in market space measurement, and the risk of delayed information or untimely update of the public data used in the research report.
