\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 87 Pony Testing International Group Co.Ltd(300887) )
Investment summary
After 20 years of painstaking development, it has become a leader in China’s testing industry. The company is mainly engaged in inspection and testing, measurement, certification and related technical services. After 20 years of development, it has grown into a well-known private comprehensive third-party inspection, testing and certification technical service group in China. Inspection and testing is the main business of the company, covering four sectors and multiple fields, including traditional fields such as environment and food, as well as emerging tracks such as medicine, new energy vehicles, cro / cdmo and military industry.
The rapid development of China’s third-party testing industry shows the trend of marketization and intensification. China’s testing industry started late and developed rapidly with policy support. From 2014 to 2020, the scale of China’s testing market increased from 158644 billion yuan to 358592 billion yuan, with cagr14.5 billion yuan 56%。 Private inspection institutions have developed rapidly, their proportion has increased rapidly, and the marketization process has been continuously improved. By the end of 2020, there were 27302 private inspection institutions, accounting for 55.81%. The market share of leading enterprises has gradually increased, and the trend of industry intensification has become more and more obvious. In 2020, the operating revenue of inspection and testing machines above Designated Size will account for 77.36%.
The company has complete qualifications, strong R & D and wide channels. It is focusing on new tracks such as CXO to improve its performance. The company has CMA, CNAs, national food re inspection agency, catl, CCC and other qualifications, and can provide all-round testing services; The nationwide service network layout has taken shape, with wide channel coverage. The company has established a R & D team with reasonable structure and layout, high academic level, good professional foundation and rich R & D experience. At present, there are 782 R & D personnel, accounting for 11.43% of the total number of employees of the company. The company closely follows the development trend of the industry and focuses on the layout of the new CXO track on the basis of continuously consolidating the original business. After years of development, the company has built a CXO R & D team with rich experience and solid technical ability, and has maintained good cooperative relations with many well-known pharmaceutical enterprises at home and abroad.
Investment advice
We predict that the company’s revenue from 2021 to 2023 will be 2.002 billion yuan, 2.663 billion yuan and 3.476 billion yuan, with a year-on-year growth rate of 40.4%, 33.0% and 30.6%. The net profit attributable to the parent company from 2021 to 2023 will be 218 million yuan, 288 million yuan and 375 million yuan, with a year-on-year growth rate of 33.4%, 31.7% and 30.3%, corresponding to EPS of 1.59, 2.10 and 2.73 yuan. The corresponding P / E of the current stock price is 41.07, 31.19 and 23.94 times. The company is in a period of rapid development and expansion. With the continuous expansion of business margins to cro / cdmo, high-end equipment, new energy vehicles and other emerging fields, it is expected to achieve high income growth. “Buy” rating is given for the first time.
Risk tips:
Industrial policy change risk, new business expansion risk, brain drain and shortage risk, etc
