\u3000\u3 Guocheng Mining Co.Ltd(000688) 690 Suzhou Nanomicro Technology Co.Ltd(688690) )
Event: in 2021, the operating revenue reached 450 million yuan, a year-on-year increase of 117.7%; The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 158.8%; The net profit attributable to the parent company after non deduction was 170 million yuan, with a year-on-year increase of 172.1%, and the performance was better than we expected.
Q4’s single quarter performance continued to grow rapidly, and its operating cash flow increased significantly: in 2021q4, the company achieved a revenue of 160 million yuan, a year-on-year increase of 112.7%, and a net profit attributable to the parent company of 72.83 million yuan, a year-on-year increase of 119.5%; The net profit attributable to the parent company after non deduction was 62.66 million yuan, a year-on-year increase of 115.6%, and the performance of a single quarter continued to maintain rapid growth. In 2021, the company’s sales expense was 66.26 million yuan (+ 109.4%, year-on-year, the same below), and the sales expense rate was 14.84% (-0.60pp); The management expense is 47.54 million yuan (+ 71.2%), and the management expense rate is 10.65% (- 2.70pp); The R & D expense was 66.1 million yuan (+ 98.7%), and the R & D expense ratio was 14.81% (- 1.42pp). In 2021, the company realized a net operating cash flow of 160 million yuan, a year-on-year increase of 118.2%.
The biopharmaceutical industry is booming, and the company’s related businesses are growing rapidly: benefiting from the high prospect of China’s biopharmaceutical industry, the company’s main business, especially ion exchange chromatography media and chromatography media for macromolecular drug purification, has maintained rapid growth. In terms of business, in 2021, the revenue of chromatographic filler and chromatographic medium products was 350 million yuan (+ 148.5%), of which the revenue of chromatographic filler and chromatographic medium products used in pharmaceutical enterprises’ formal production or phase III clinical projects was about 160 million yuan; The income of liquid chromatography column and sample pretreatment products was 31.66 million yuan (+ 77.6%); IVD achieved a revenue of 15.8 million yuan (+ 87.7%) with core microsphere products; The revenue of microsphere products in the photoelectric field was 37.68 million yuan (+ 78.5%). Considering the centralized purchase policy, supply chain security and epidemic factors, the company, as the leader of domestic chromatographic fillers, ushered in the double dividend of market expansion and share improvement. It is expected to continue to usher in the rapid growth of performance in the future.
Continue to accelerate the development and industrial application of new products and actively layout new business growth points: in 2021, the company developed mixed mode ion exchange chromatography media, high-performance reverse phase silica gel chromatography fillers for insulin and ion exchange chromatography media products with the same performance as imported similar products. Compared with imported fillers, the supply cycle is shorter and stable mass supply is realized. High load protein A affinity chromatography media and unichiral series coated high-performance chiral chromatographic fillers have been sold on a large scale; Magnetic beads, latex microspheres, fluorescent microspheres and other products for chemiluminescence have gradually turned to mass production, and have been verified and tested by many diagnostic reagent manufacturers in China and partially applied. In the first half of 2021, the company jointly funded the establishment of nano micro life technology, focusing on increasing the development and market expansion of magnetic beads and other products, seizing the opportunity of domestic substitution of raw materials upstream of in vitro diagnosis, and quickly realizing industrial application.
Profit forecast and investment rating: considering the double dividend of market expansion and share improvement, we will increase EPS from 0.62/0.96 yuan to 0.72/1.11 yuan in 20222023. At the same time, it is predicted that the net profit attributable to the parent company in 2024 will be 645 million yuan, and the current market value corresponds to 113 times, 74 times and 51 times of PE in 20222024 respectively, maintaining the “buy” rating.
Risk tips: market competition intensifies risk, downstream industry policy risk, etc
