\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 39 Guangdong Hybribio Biotech Co.Ltd(300639) )
Event: on March 26, Guangdong Hybribio Biotech Co.Ltd(300639) released its annual report for 2021, and achieved an annual operating revenue of 2.673 billion yuan, a year-on-year increase of 97.34%; The net profit attributable to the parent company was 852 million yuan, a year-on-year increase of 134.97%; Deduct non net profit of 841 million yuan, a year-on-year increase of 138.15%. The net cash flow from operating activities was 63100 yuan, with a year-on-year increase of 102.81%.
In a single quarter, the operating revenue in the fourth quarter of 2021 was 681 million yuan, a year-on-year increase of 55.68%; The net profit attributable to the parent company was 205 million yuan, a year-on-year increase of 129.65%; Deduct non net profit of 211 million yuan, with a year-on-year increase of 140.10%.
Focus on covid-19 epidemic prevention and control, and significant progress has been made in the construction of medical laboratories
The company actively participated in the epidemic prevention and control work in the mainland and Hong Kong: nearly 50 million people were tested for nucleic acid in 2021, of which more than 3 million people were tested for covid-19 nucleic acid in Hong Kong; Relevant testing businesses have also developed rapidly, which has made significant and positive contributions to epidemic prevention and control. In 2021, the company’s third-party medical laboratory business achieved rapid development, with a business income of 1.643 billion yuan, a year-on-year increase of 197.54%; Due to the decrease of terminal detection service charges, the gross profit margin decreased by 5.03pct to 62.75% year-on-year. The subsidiary achieved a net profit of 2.69 billion yuan, including a net profit of 2.69 billion yuan; The Hong Kong Inspection subsidiary achieved a revenue of 774 million yuan and a net profit of 320 million yuan.
While focusing on covid-19 epidemic prevention and control, the company’s medical laboratory construction has made significant progress. At present, 30 laboratories have obtained the practice license of medical institutions and put into operation. It is expected that 35 medical laboratories will be put into operation by 2022, and 16 inspection and testing companies have been established to carry out the inspection business focusing on drug detection (hair and sewage). The company has 51 inspection laboratories.
Continue to expand molecular diagnosis business, as well as capacity construction and digital transformation and upgrading
Focusing on the innovative development of R & D platform and product pipeline, the company invested 125 million yuan in R & D in 2021, with a year-on-year increase of 52.39%. At the same time, the company strengthened the construction of production capacity, and the production bases in Chaozhou and Guangzhou continued to expand: the daily output of nucleic acid detection reagents could reach 900000 people, the daily output of extraction reagents could reach 1 million people, the daily output of sample preservation solution could reach 1.3 million tubes, and the daily output of detection instruments could reach 30 sets. In addition, the company actively organized and participated in industry and academic exchanges, organized and participated in more than 400 offline, online industry and academic conferences, and effectively promoted the company’s brand and industry development information.
The company’s series of products are widely used in covid-19 epidemic prevention and control, maternal and child health and other fields, and relevant businesses have achieved rapid growth. The revenue of diagnostic products increased by 3.8 billion yuan year-on-year; The gross profit margin decreased by 1.79 PCT to 75.42% year on year; Among them, the sales revenue of self-produced products was 859 million yuan, a year-on-year increase of 27.45%; The revenue from purchased products was 171 million yuan, a year-on-year increase of 33.34%. Kaipu Chemical subsidiary achieved a revenue of 1.079 billion yuan and a net profit of 387 million yuan.
The overall net interest rate increased by 3.97pct to 33.11% year-on-year
In terms of financial indicators, the overall gross profit margin of the company decreased by 5.74pct to 67.63% year-on-year. We speculate that it is mainly due to the year-on-year decrease in the detection price of covid-19 nucleic acid terminal; The sales expense ratio decreased by 8.80pct to 14.32% year-on-year. We speculate that it is because the revenue scale of covid-19 nucleic acid detection continues to expand, while the marketing expenses of the original business are relatively stable; The management expense ratio decreased by 2.34 PCT to 7.45% year on year, and the R & D expense ratio decreased by 0.98 PCT to 4.31% year on year. All expense ratios decreased significantly, mainly due to the scale effect caused by the expansion of the company’s revenue scale; The net interest rate increased by 3.97pct to 33.11% year-on-year.
Profit forecast and investment rating: Based on the analysis of the company’s core business segment, we expect the operating revenue to be 3.054 billion / 2.724 billion / 2.808 billion respectively from 2022 to 2024, with a year-on-year growth rate of 14.25% / – 10.81% / 3.08% respectively; The net profit attributable to the parent company was 915 million / 737 million / 756 million respectively, an increase of 7.33% / – 19.38% / 2.51% respectively; EPS is 3.11/2.51/2.57 respectively, corresponding to 11 times PE in 2022 according to the closing price on March 25, 2022. Maintain the “buy” rating.
Risk warning: the risk of continuous infection of New Coronavirus pneumonia. The risk of new product development and listing, the risk of original product sales falling short of expectations, the risk of increasingly fierce market competition and the risk of policy change.
