\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 47 Hangzhou Tigermed Consulting Co.Ltd(300347) )
Event: the company released the performance express of 2021 and the main business data from January to February 2022. 1) It is estimated that the operating revenue will reach 5.21 billion yuan in 2021, with a year-on-year increase of 63.3%; The net profit attributable to the parent company was 2.87 billion yuan, a year-on-year increase of 64.3%; After non deduction, the net profit was 1.23 billion yuan, a year-on-year increase of 73.9%. 2) According to the preliminary accounting of the company, from January to February 2022, the newly signed orders increased by more than 65% year-on-year, and the operating revenue increased by more than 100% year-on-year.
The performance is in line with expectations and the revenue growth is strong. We believe that it is mainly due to the strong demand for clinical trials of innovative drugs in China in 2021 and the gradual realization of some overseas covid-19 vaccine clinical projects to achieve rapid growth. In addition, the new orders signed by the company in the first half of the year have reached 5.075 billion yuan (year-on-year + 150.82%). We expect the rapid growth of new orders to continue throughout the year, and the full order reserve provides guarantee for the subsequent rapid growth.
The newly signed orders reflect strong demand, and the rapid growth in 2022 is expected. The newly signed orders of the company increased by more than 65% from January to February 2022, further verifying the strong demand of the industry; The revenue doubled, reflecting the good growth trend of the company's main business in 2021 and boosting the confidence of high growth in the whole year. The international layout continues to accelerate and improve the growth ceiling. By the end of the first half of 2021, the number of ongoing single regional clinical trials outside the company (including South Korea, Australia and the United States) increased to 111; The number of ongoing multi regional clinical trials has increased to 29; Multi regional clinical trials have been distributed to Asia Pacific, Europe, Africa and Latin America. At the same time, the company continues to expand the global project management team to more fully meet the increasing demand of customers for overseas clinical trials (especially multi regional clinical trials), which will continue to improve the global market competitiveness of local clinical cros.
Profit forecast and rating: we are optimistic about the continuous high-speed growth of the company's main business under the strong industrial demand and the improvement of global service capacity under the continuous promotion of international expansion. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 2.87 billion yuan, 3.53 billion yuan and 4.23 billion yuan respectively, with a year-on-year increase of 64.2%, 23.0% and 19.6%; The corresponding PE is 26, 21 and 18 times respectively, maintaining the "buy" rating.
Risk warning: the global epidemic continues to affect the business risk, the risk of declining demand for pharmaceutical R & D services, the risk of intensified market competition, the risk of loss of core technicians and the risk of exchange rate changes.
