\u3000\u3 Guocheng Mining Co.Ltd(000688) 690 Suzhou Nanomicro Technology Co.Ltd(688690) )
Events
The company released its 2021 annual report on the evening of March 10. In 2021, the company achieved a revenue of 446 million yuan, a year-on-year increase of 118%; The net profit attributable to the parent company was 188 million yuan, a year-on-year increase of 159%; The net profit deducted from non profits was 172 million yuan, a year-on-year increase of 172%; Achieve weighted average roe23 84%, a year-on-year increase of 9.17 percentage points.
Brief comment
The field of biomedicine has witnessed rapid and large-scale growth and sustained high performance
The company’s annual report performance is consistent with the previously disclosed performance express. The significant year-on-year increase in performance is mainly due to the significant increase in the sales of affinity chromatography media, ion exchange chromatography media and other products. In 2021, the company’s revenue in the field of biomedicine was 390 million yuan, with a year-on-year increase of 134%, accounting for 87% of revenue, with a year-on-year increase of 6 percentage points; Among them, the income of chromatographic filler and chromatographic medium was 350 million yuan, a year-on-year increase of 149%, accounting for 78% of the income. The total revenue of commercialization and phase III clinical projects is 160 million yuan, accounting for about 37% of the total revenue; There were 500 customers of chromatographic fillers and chromatographic media, with a year-on-year increase of about 100. In addition, the company’s nucleic acid drug orders increased more than expected in 2021.
Multi point flowering in the fields of small molecules, analytical columns, chiral resolution, IVD, flat panel display, etc
In terms of small molecule chemical drugs, while the anti biological growth is stable, the contrast agent products have been developed and applied on a large scale; Breakthroughs have been made in the research and development of insulin high-performance silica gel products, forming potential performance growth points; Breakthroughs were made in the process of fish oil project, CBD (cannabinoid) project successfully completed the integrated solution, some polypeptide projects completed the import replacement of new fillers, cyclosporin green process made a breakthrough and began to replace the traditional amorphous silica gel market. The market of recycling silica gel chromatographic filler instead of disposable amorphous silica gel with serious pollution has been opened, and the new application of monodisperse silica gel chromatographic filler and polymer chromatographic filler has been promoted. In terms of analytical columns, the company focused on promoting antibody macromolecular characterization chromatographic columns to pharmaceutical enterprises and paid attention to the cooperation with industry competent departments such as the national pharmacopoeia commission and international instrument companies. The revenue of analytical columns increased by 77.64% year-on-year in 2021. In terms of chiral resolution, the company attaches importance to process development and technical service business, and has the ability to provide resolution services from mg level to 100 kg level, with the rapid growth of chiral resolution services. While the nucleic acid extraction magnetic beads of IVD companies continued to expand production to meet the needs of epidemic prevention and control, chemiluminescence magnetic beads, latex microspheres, fluorescent microspheres and other products gradually shifted to mass production, and carried out verification and testing in many diagnostic reagent manufacturers in China. The technical parameters, stability and applicability of the client have been verified, and the blackening process of the microspheres has been finalized. In order to improve the applicability under various working conditions, the development of surface modification of white polymer microspheres has also been completed.
As the core material of biological drug purification, localization is imminent
With the breakthrough of large-scale cell culture technology in the upstream of biological drugs, the bottleneck of biological drug production mainly comes from the downstream separation and purification. Chromatographic filler is not only the core consumables in the separation and purification process, accounting for about 65% of the total cost, but also determines the purity and quality of biological drugs. For a long time, high-performance nano microsphere chromatographic fillers have been monopolized by foreign enterprises. According to statistics, gehealthcare, TOSOH and bio rad accounted for 50% of the market share in the international market in 2018. China also relies on imports for a long time, which not only has high prices, but also may face problems such as unstable supply and long supply cycle.
We will continue to expand production and energy, and actively layout new growth points
Changshu nanomicro completed the production line installation and entered the trial production in December 2020. In 2021, the technical transformation project of agarose and dextran chromatography medium with a capacity of 50 tons will enter the equipment installation stage after completing environmental assessment, safety assessment and design. Microsphere Research Institute, nano spectrum analysis, life technology and other three companies jointly leased a 5599 square meter single building, which was officially put into use in the fourth quarter of 2021. Microsphere research institute focused on using the leased site to accelerate the incubation of projects in new application fields of microsphere industry and the construction of separation and purification application technology service platform, Nano spectrum analysis and life technology companies use the newly rented site for the research, development and production of chromatographic column consumables, microspheres for in vitro diagnosis and other products. In addition, in December 2021, the company reached an agreement with the Management Committee of Zhejiang Dushan Port Economic Development Zone, and plans to purchase about 60 mu of chemical land to build a new production base.
Continue to introduce technical teams and bind the core interests with the equity incentive plan
In February 2021, the company signed a cooperation agreement with Baosai biology of Xi’an Jiaotong University and obtained soft glue technology; In the first half of 2021, we jointly invested with Dr. Zhao Guangyao and Jiangsu Jicui to establish nanomicro life technology, focusing on breaking through the upstream raw materials of IVD; At the end of 2021, the technical team and R & D achievements of Suzhou Meiji medical, mainly Dr. Li Guorong, were integrated, and the continuous chromatography equipment and nucleic acid synthesis instrument were arranged. In 2021, the company also introduced a number of technical talents and launched the equity incentive plan.
The increase in net interest rate and turnover rate resulted in a significant increase in roe and a healthy cash flow ratio
The company’s net interest rate and asset turnover increased by 6.7 and 13.2 percentage points respectively year-on-year. With the equity multiplier basically unchanged, roe increased significantly from 14.7% to 23.8%. With the rapid growth of business scale, the company’s cash flow related ratio remains healthy. In 2021, the cash to net ratio and cash to income ratio are 84% and 96% respectively, with year-on-year changes of – 15% and 5% respectively. In 2021, the company’s sales, management, R & D and financial expenses were RMB 66 million, RMB 48 million, RMB 66 million and RMB – 04 million respectively, with a year-on-year increase of 109%, 71%, 99% and 470% respectively. Due to the significant growth of revenue scale, various expense rates were diluted. The rates of sales, management, R & D and financial expenses were 14.8%, 10.7%, 14.8% and – 1.0%, with a year-on-year decrease of 0.6, 2.9, 1.4 and 0.6 percentage points respectively.
Profit forecast and investment rating
We estimate that the operating revenue of the company in 2022, 2023 and 2024 will be RMB 680 million, RMB 1.02 billion and RMB 1.43 billion respectively, and the net profit attributable to the parent company will be RMB 300 million, RMB 450 million and RMB 640 million respectively, corresponding to pe111, 73 and 51 times. We judge that the inflection point of improving the localization rate of biopharmaceutical consumables in China has come, and the localization rate will accelerate in the next few years. As China’s chromatographic filler / chromatographic medium, the company will fully benefit from the localization process of consumables and maintain the buy rating.
Risk tips: Valuation related risks, inter batch stability risks, product market promotion less than expected risks, etc.
