Sino Biological Inc(301047) (301047)
It has been deeply engaged in the industry for more than ten years and is committed to building a biological reagent platform company
Sino Biological Inc(301047) is committed to building a “one-stop” biological reagent platform. The company has a complete range of biological reagent products such as recombinant protein, antibody, gene and culture medium, further expands cro business, and provides customers with more comprehensive products and technical services. The value of the platform gradually appears. Based on the characteristics of the industry and the needs of end customers, we are optimistic about the long-term development of the company with an independent biotechnology platform and a platform that can provide a variety of biological reagent product lines and a rich number of varieties. We estimate that the operating revenue from 2021 to 2023 will be RMB 1074 / 885 / 949 million respectively, the net profit attributable to the parent company will be RMB 684 / 506 / 459 million respectively, the EPS will be RMB 10.06 / 7.44 / 6.75 respectively, and the PE corresponding to the current share price will be 35.4 / 47.9 / 52.7 times respectively. It is covered for the first time and given the “overweight” rating.
Biological reagent industry: the Chinese market is growing rapidly and a hundred flowers bloom in the industry
Life science reagent is the basic material of life science research and development. As a consumable tool, it is widely used in life science research activities. In 2019, the overall market scale of global biological reagents was USD 17.5 billion, and the capacity was steadily expanded; The scale of biological reagents in China in 2019 is 13.6 billion yuan and is growing rapidly. It is expected that the compound growth rate from 2019 to 2024 will be 13.8%. We are optimistic about the rapid improvement of China’s scientific research service level under the encouragement of policies. As a “water seller” of basic scientific research, the long-term development can be expected. It is expected that covid-19 epidemic will accelerate the process of domestic substitution and internationalization.
Build an independent closed-loop biological reagent platform and actively expand products and business lines Sino Biological Inc(301047) relying on the independent closed-loop biological technology platform, the company has developed a complete product line of recombinant protein, antibody, gene and culture medium. The downstream customers of biological reagents have diverse needs. The company develops many types of products, which helps to meet the comprehensive product needs of basic scientific research and innovative drug research and development, Enhance the company’s reputation in the customer base and strengthen the brand power of Sino Biological Inc(301047) .
Deeply tap the value of the technology platform and layout the cro business. As the company is put into use in Suzhou subsidiary, the company’s cro business will further grow rapidly and contribute new growth points to the company’s performance.
Risk tips: the decline of covid-19 business exceeded expectations, the loss of core technicians, new product development risk, product quality risk and overseas market promotion were less than expected.
