\u3000\u3 Shengda Resources Co.Ltd(000603) 127 Joinn Laboratories (China) Co.Ltd(603127) )
Event overview
The company announced its 2021 annual report: the annual operating revenue was 1.517 billion yuan, a year-on-year increase of 40.97%; The net profit attributable to the parent company was 557 million yuan, a year-on-year increase of 76.96%; The non net profit deducted was 530 million yuan, a year-on-year increase of 81.63%.
Analysis and judgment:
The performance continued to grow at a high speed, and the newly signed orders increased by about 66% year-on-year in 21 years
In 2021, the annual operating revenue was 1.517 billion yuan, with a year-on-year increase of 40.97%, of which 21q4 achieved an operating revenue of 660 million yuan in a single quarter, with a year-on-year increase of 48.49%, continuing the trend of rapid growth. Considering the high-speed growth of the company's orders and inventory data, we judge that it is expected to continue to achieve high-speed growth in 22 years.
(1) the safety assessment business continued to grow at a high speed, verifying the sustainability of China's high view: the safety assessment business achieved an operating revenue of 1.482 billion yuan, a year-on-year increase of 40.8%, including 1.229 billion yuan for domestic business, a year-on-year increase of 48.1%, 253 million yuan for overseas business, a year-on-year increase of 13.7%. The domestic business continued to grow at a super high speed, verifying the sustainability of China's high view.
(2) new orders signed in 21 years increased by about 66% year-on-year, laying a foundation for growth in the next few years: in 2021, the company signed orders of more than 2.8 billion yuan, a year-on-year increase of about 66%, of which domestic companies signed orders of 2.55 billion yuan, a year-on-year increase of 65% (domestic companies signed overseas orders of 160 million yuan, a year-on-year increase of 100%), and overseas biomere signed new orders of 280 million yuan, a year-on-year increase of 75%. By the end of 2021, the company's orders on hand were about 2.9 billion yuan, and the contract liabilities in the balance sheet (972 million yuan at the end of 21, a year-on-year increase of 66%) mutually confirmed the certainty of orders on hand. Looking forward to the future, the company will continue to show rapid growth.
The multi-point layout deeply cultivates China's safety evaluation market, and the internationalization strategy brings about the expansion of market space
Looking forward to the future, the company will achieve sustainable business growth through deep cultivation in the Chinese market and international business expansion:
Joinn Laboratories (China) Co.Ltd(603127) based on the safety assessment centers in Beijing and Suzhou, issue H-shares to raise funds and prepare for the new Chongqing and Guangzhou safety assessment centers, so as to realize the national regional multi-point layout and capacity expansion, and meet the medium and long-term capacity needs of the company; Through the regional network layout and continuous improvement of production capacity, the company has deeply cultivated China's safety evaluation market and realized the continuous improvement of penetration rate;
The company established Zhaoyan California in the United States in June 2013, responsible for the market expansion of international projects, and successfully realized the consolidation of biomere in the United States in December 2019. In the future, with the help of the American biomere platform, accelerate the expansion of the international market and realize the expansion of market space, that is, expand from China's "small market of 5 billion yuan" to the global "large market of 4.5 billion dollars", so as to support the sustained and rapid growth of the company's medium and long-term performance.
Normalization of employee equity incentive to realize the binding of employee interests and company interests: the company has implemented a large-scale equity incentive plan for senior management team and core technicians for four consecutive years from 2018 to 2021, which can better attract and retain talents, encourage core employees to grow together with the company, realize the binding of employee interests and company interests, and benefit the medium and long-term rapid growth of the company.
Investment advice
As the largest leader of drug safety evaluation in China, the company will deeply cultivate China's safety evaluation market through regional multi-point layout in the future, and realize the coordinated development of business outside China with the help of American biomere platform. We judge that in the next 3-5 years, the company will benefit from the prosperity of innovative drug research and development in China and the expansion of market space brought by internationalization to maintain rapid growth. Considering the fluctuation of order confirmation, slightly adjust the early-stage profit forecast, that is, the revenue is adjusted from RMB 2.137/3.048 billion in 22-23 to RMB 2.04/30.16/4.152 billion in 22-24, and EPS is adjusted from RMB 2.05/2.68 in 22-23 to RMB 2.00/2.69/3.55 in 22-24, corresponding to the closing price of RMB 115.9/share on March 30, 2022. PE is 58.09/43.17/32.69 times respectively, maintaining the "buy" rating.
Risk tips
Risk of loss of core technical backbone and management; The risk of increased competition; There is a risk of failure in capacity expansion, internationalization strategy and business expansion; The impact of New Coronavirus epidemic.
