\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 47 Hangzhou Tigermed Consulting Co.Ltd(300347) )
Key points
Event: the company released its annual report for 2021, realizing an operating revenue of 5.214 billion yuan (+ 63.32% YoY), a net profit attributable to the parent company of 2.874 billion yuan (+ 64.26% YoY), and a net profit not attributable to the parent company of 1.232 billion yuan (73.90% YoY); 21q4 achieved an operating revenue of 1.819 billion yuan (+ 103.9% YoY), a net profit attributable to the parent company of 1.093 billion yuan (+ 153.2% YoY), and a net profit not attributable to the parent company of 363 million yuan (+ 72.2% YoY), slightly exceeding our previous expectations.
The main business has been steadily accelerated. In 2021, the company's revenue from clinical trial technical services was 2.994 billion yuan (+ 97.1% YoY), which mainly benefited from the gradual recovery of clinical demand after covid-19 epidemic relief and the increase of customers' demand for multi center clinical services in China, overseas and around the world; The gross profit margin was 44.8% (-5.36ppyoy), mainly due to the high handling fees of overseas multi center clinical trials dominated by covid-19 pneumonia. The revenue from clinical trial related services and laboratory services was 2.19 billion yuan (+ 32.4% YoY), mainly due to the increase in the revenue from laboratory services, on-site management, subject recruitment services, data management and statistical analysis services; The gross profit margin was 41.48% (-3.11ppyoy), which was mainly due to the rising cost caused by the rising exchange rate of RMB against the US dollar and the further recovery of on-site management business with low gross profit margin.
The scale of orders on hand is growing rapidly, and the main business is expected to accelerate. During the reporting period, the company increased the contract amount by 9.65 billion yuan (+ 74.22% YoY); By the end of the reporting period, the company's cumulative contract amount to be executed was RMB 11.4 billion (+ 57.09% YoY). We believe that the company's new contracts and the accumulated amount of contracts to be executed can indicate the rapid growth of the company's future performance.
Internationalization is advancing steadily. During the reporting period, the company carried out 50 international multi center clinical trial projects (MRCT), covering more than 20 countries and regions such as North America, South America, Asia Pacific and Europe; The company operates and implements more than 182 regional clinical trial projects overseas, mainly in South Korea, Australia and the United States. At present, the company has 24 overseas companies and more than 1000 overseas teams in 52 countries. We believe that covid-19 related global multi center projects will accelerate the company's overseas layout and further strengthen the global clinical trial capacity.
Profit forecast, valuation and rating: the company is the leader of clinical cro in China, and the international layout opens the growth ceiling. Considering that the revenue side of the company slightly exceeded the previous expectations in the 21st year, and the newly signed orders and revenue increased by more than 65% and 100% year-on-year respectively from January to February of the 22nd year, the company's EPS in the 22nd to 23rd year was raised to 3.62 yuan (up 2.25%) / 4.31 yuan (up 3.86%), and the newly increased EPS in 2024 was 5.09 yuan, with a year-on-year increase of 9.84% / 19.06% / 18.12% respectively, corresponding to 27 / 23 / 19 times of PE in the 22nd to 24th year, maintaining the "buy" rating.
Risk warning: the impact of the epidemic leads to the clinical business recovery less than expected; The global investment in new drug research and development is less than expected; Investment income fluctuates.
