\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 047 Sino Biological Inc(301047) )
The annual performance was in line with expectations, and the non covid-19 business continued to grow rapidly
On February 27, 2022, the company released its annual report for 2021, realizing an operating revenue of 965 million yuan, a year-on-year decrease of 39.53%; The net profit attributable to the parent company was 720 million yuan, a year-on-year decrease of 36.15%; The net profit attributable to the parent company after deducting non-profit was 597 million yuan, a year-on-year decrease of 46.81%. Covid-19 related business income was 606 million yuan, a year-on-year decrease of 54.86%; Non covid-19 virus related businesses maintained rapid growth. In 2021, the revenue of non covid-19 virus related businesses was 359 million yuan, a year-on-year increase of 41.41%. Based on the characteristics of the industry and the needs of end customers, we are optimistic about the long-term development of a platform company that can provide a variety of biological reagent product lines and a rich number of varieties. According to the development trend of the company, we fine tune the 20222023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company is 516 / 455 / 525 million yuan (506 / 459 million yuan before the 20222023 adjustment), the EPS is 7.59/6.69/7.72 yuan, and the current share price corresponds to 43.8/49.7/43.1 times of PE, maintaining the “overweight” rating.
Continue to increase R & D investment, and the prototype of “one-stop” biological reagent platform has emerged
In 2021, the company invested 40.13 million yuan in R & D, with a year-on-year increase of 53.99%. It increased its investment in recombinant proteins, immunodiagnostic antigen raw materials, molecular biology tool enzymes, nano antibodies, phosphorylated monoclonal antibodies and other directions. Relying on the independent closed-loop biotechnology platform, the company has developed a complete product line of recombinant protein, antibody, gene and culture medium to meet the diversified needs of downstream customers of biological reagents. At the same time, Sino Biological Inc(301047) deeply explored the value of the technology platform and arranged the cro business. In 2021, the cro service revenue was 87.57 million yuan, with a year-on-year increase of 73.69%, and some businesses increased by more than 100%, maintaining high-speed growth.
Improve the ability of market expansion and improve the global sales network
The sales staff of the company increased from 77 in 2020 to 114 in 2021, and the market expansion personnel expanded rapidly; At the same time, it has set up a subsidiary in Japan to be responsible for the sales of biological reagents in Japan and South Korea, improve the layout of the company’s global marketing network, and set up local customer service and logistics centers in the west coast of the United States, European developed countries, Japan and South Korea and other regions with active foreign demand, so as to lay the foundation for the company’s overseas market expansion.
Risk tip: covid-19 business decline exceeded expectations, the loss of core technical personnel, and overseas market promotion was less than expected.
