\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 47 Hangzhou Tigermed Consulting Co.Ltd(300347) )
The company released its 2021 annual report: in 2021, it achieved an operating revenue of 5.21 billion yuan, 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%.
The performance was in line with expectations and the revenue growth was strong: during the reporting period, the revenue was 5.21 billion yuan (yoy63.3%), of which the revenue from clinical trial technical services was 2.99 billion yuan (yoy97.1%). After the recovery of the epidemic, the demand for Chinese clinical trials, overseas clinical trials and multi regional clinical trials (including covid-19 pneumonia vaccine and treatment) increased strongly, with strong growth in medical registration, scientific affairs Medical translation and pharmacovigilance services also maintained an increasing trend. The revenue from clinical trial related services and laboratory services reached 2.19 billion yuan (yoy32.4%), of which the proportion of overseas business revenue from digital systems business and laboratory services is significantly higher than that of Chinese business. Most overseas business revenue is settled in US dollars. Excluding the impact of the sharp appreciation of RMB against the US dollar during the reporting period, the revenue of the sector is expected to grow faster.
Orders reflect strong demand and can be expected to grow continuously and rapidly: during the reporting period, the company increased the contract amount by 9.65 billion yuan (yoy74.2%), and at the end of the reporting period, the cumulative contract amount to be executed was 11.4 billion yuan (yoy57.1%). At the same time, it was announced that the newly signed orders increased by more than 65% year-on-year from January to February 2022, which further verified the strong demand of the industry and is expected to maintain a good growth trend in the future.
Continue to accelerate the international layout and improve the growth ceiling: at the end of the reporting period, the number of drug clinical research projects carried out by the company increased to 567 (yoy45.8%), including 385 domestic single regional pilot projects (yoy40.5%), and 132 overseas single regional pilot projects (yoy38.9%) including South Korea, Australia and the United States, including Asia Pacific, North America, Europe There are 50 multi regional clinical trial projects in Africa and Latin America (yoy150%). At the end of the reporting period, the total number of employees increased to 8326 (yoy38.0%), of which the number of overseas employees increased to 1026 (yoy32.9%), covering 52 countries on five continents, and the clinical operation and project management team in major overseas markets such as Europe and the United States continued to expand.
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 2022 to 2024 will be 3.35 billion yuan, 4.09 billion yuan and 4.96 billion yuan respectively, with a year-on-year increase of 16.6%, 22.1% and 21.2%; The corresponding PE is 26, 21 and 17 times respectively, maintaining the "buy" rating.
Risk warning: the epidemic affects the operation risk, the decline risk of demand for pharmaceutical R & D services, the loss risk of core technicians, and the risk of exchange rate changes.
