\u3000\u3 Guocheng Mining Co.Ltd(000688) 105 Nanjing Vazyme Biotech Co.Ltd(688105) )
Event overview
On February 26, 2022, Nanjing Vazyme Biotech Co.Ltd(688105) released the annual performance express of 2021: the company achieved an annual operating revenue of 1.864 billion yuan, a year-on-year increase of 19.13%; The net profit attributable to the parent company in the whole year was 678 million yuan, a year-on-year decrease of 17.43%; It is estimated that the net profit of non parent company deduction in the whole year is 644 million yuan, a year-on-year decrease of 20.90%.
The revenue is in line with market expectations, and the conventional business has nearly doubled.
1) revenue side: the company achieved annual sales revenue of 1.864 billion yuan, with a year-on-year increase of 19.13%, including routine business revenue of about 718 million yuan, with a year-on-year increase of about 92%, nearly doubling the growth, mainly due to the improvement of the company's product series and the growth of demand in downstream subdivided application fields; The related revenue of covid-19 is about 1.146 billion yuan, a year-on-year decrease of about 3%, which is relatively stable. It is mainly due to the repeated epidemic in the world, and the company's covid-19 product categories are relatively complete, which can provide testing raw materials and terminal reagents at the same time. 2) Profit side: the company's annual net profit attributable to the parent company was 678 million yuan, a year-on-year decrease of 17.43%, and the net profit attributable to the parent company in the fourth quarter was 128 million yuan, a month on month decrease of 19.01%, mainly due to the intensification of industry competition and the moderate reduction of the ex factory price of covid-19 related raw materials and terminal products.
Increase investment in R & D and scientific sales of the company.
In 2021, the company's R & D expenses were about 232 million yuan, a year-on-year increase of 84.97%, and the sales expenses were about 320 million yuan, a year-on-year increase of 70.61%, mainly due to the company's significant increase in R & D and sales personnel, further improving market coverage and increasing market expansion and publicity while enriching R & D pipelines. In addition, in 2021, the company newly invested and established a material subsidiary, a dynamic protection subsidiary and a testing subsidiary to accelerate the layout of the upstream industrial chain and enrich the terminal application scenarios of biological reagents, which is conducive to improving the company's comprehensive competitive strength.
The three business units go hand in hand, and the process of globalization is gradually promoted.
1) biopharmaceutical Division: it mainly includes R & D reagents, clinical cro services and mRNA vaccine raw materials for pharmaceutical and vaccine enterprises, which is the key layout direction of the company in the future; 2) The Life Sciences Division is the pillar business of the company, mainly focusing on scientific research reagents and related reagents for sequencing, supplemented by nucleic acid raw materials; 3) IVD business unit, the conventional POCT detection reagent is relatively complete, and will focus on developing some scarce indicators in the future, such as self exemption, eugenics and oncology, which belong to the company's cash flow business. The company focuses on the global layout. At present, the sales team of overseas business has nearly 100 people, mainly in Southeast Asia and Europe. It obtains customers through covid-19 related products, establishes customer relations, and further implants other product lines. With the gradual establishment and improvement of the company's global marketing network, overseas is expected to become a new revenue growth point of the company in the future.
Investment suggestion: as the leader of molecular biological reagents in China, with the orderly promotion of pipeline under research and the gradual improvement of global layout, the future performance growth of the company is certain. We expect that the company's revenue from 2021 to 2023 will be RMB 1.864/19.49/2.046 billion, and the net profit attributable to the parent company will be RMB 678771/927 million, corresponding to PE multiple of 54 ×/ forty-eight ×/ forty ×。 Maintain a "recommended" rating.
Risk warning: covid-19 epidemic uncertainty risk; Product development is not as expected; Increased competition led to a decline in product gross profit.
