\u3000\u3 Guocheng Mining Co.Ltd(000688) 356 Jenkem Technology Co.Ltd(688356) )
Event overview
On March 28, 2022, Jenkem Technology Co.Ltd(688356) released the 2021 annual report: the company achieved an operating revenue of 351 million yuan, an increase of 88.18% year-on-year; The net profit attributable to the parent company was 176 million yuan, a year-on-year increase of 105.16%; The net profit deducted from non parent company was 157 million yuan, with a year-on-year increase of 89.74%.
The scale effect dilutes the unit production cost, and the company maintains a high profit level throughout the year
1) revenue side: in terms of regions, China's revenue was 165 million yuan, an increase of 79.44% year-on-year, thanks to the continuous volume of orders from major downstream customers and the increase in technology use fees; Overseas revenue was 186 million yuan, with a year-on-year increase of 96.73%, thanks to the steady increase in orders from downstream device customers, the increase in product consumption brought about by the clinical promotion of pharmaceutical R & D customers, and the new increment brought by new customers. 2) Profit side: the year-on-year increase of net profit attributable to the parent company in 2021 was higher than that of revenue side, which was mainly due to the continuous optimization of the company's expense rate, which continued to improve the profitability. In terms of gross profit margin, the comprehensive gross profit margin in 2021 was 85.21% (year-on-year -0.76pct). After excluding the impact of share based payment, the comprehensive gross profit margin was 87.35% (year-on-year + 1.38pcts), mainly due to the scale effect of production costs caused by the increase of technical service revenue and the increase of orders, resulting in the reduction of unit costs.
The company has invested heavily in research and development, and the pipeline under research has been promoted in an orderly manner
In 2021, the company invested 54 million yuan in R & D, with a year-on-year increase of 105.22%, and the R & D expense rate reached 15.37%. There are 58 R & D personnel, with a year-on-year increase of 30, and the proportion of master's / doctoral degree reached 62%. The high R & D investment and abundant talent reserve provide a strong backing for the company's project R & D and technological innovation, so that the pipeline under research can be promoted in an orderly manner: 1) peg irinotecan project has successfully entered phase II of clinical practice, Case enrollment was carried out as planned, and the second clinical indication has been submitted to ind; 2) Jk-1119i medical device project has completed the construction of pilot workshop and is expected to enter the clinical stage in the second half of 2022; 3) Jk-2122h tumor immunosuppressive biological drug project has produced qualified registered samples and completed registration inspection. It is expected to enter the clinic in 2022. In addition, the company's patent application work continued to be carried out in an orderly manner. In 2021, 17 new patents were submitted and 12 new authorizations were obtained.
With the continuous enrichment of PEG application scenarios, the company, as the leader of PEG in China, will fully benefit
The application field of PEG is in the stage of continuous and rapid expansion, which has expanded from macromolecular protein drug modification to small molecule drugs, LNPS delivery system, cytokines, nucleic acid drugs and so on. The company is a well-known international enterprise that can provide high-purity and large-scale cGMP to produce medical medicinal peg and derivatives. It is expected to maintain continuous revenue growth with the continuous listing and sales of downstream products.
Investment suggestion: as the leader of China's peg industry, with the continuous promotion of pipeline under research and the continuous enrichment of application scenarios, the future performance growth of the company is uncertain. Considering the impact of equity incentive expenses, we expect the company's revenue to be RMB 487 / 659 / 881 million from 2022 to 2024, and the net profit attributable to the parent company to be RMB 234 / 328 / 450 million, corresponding to PE multiple of 52 ×/ thirty-seven ×/ twenty-seven ×。 Maintain a "recommended" rating.
Risk warning: covid-19 epidemic situation in the world is repeated; Product development is not as expected; Risk of centralized purchase
