\u3000\u3 Guocheng Mining Co.Ltd(000688) 356 Jenkem Technology Co.Ltd(688356) )
Event: the company released its annual report for 2021. The annual revenue was 351 million yuan (+ 88.18%), the net profit attributable to the parent company was 176 million yuan (+ 105.16%), and the net profit attributable to the parent company after deduction was 157 million yuan (+ 89.74%). In the fourth quarter, the revenue was 89 million yuan (+ 46.98%), the net profit attributable to the parent company was 33 million yuan (+ 13.09%), and the net profit attributable to the parent company after deduction was 27 million yuan (- 7.86%). The company plans to distribute a cash dividend of 8.79 yuan (including tax) for every 10 shares. The overall performance is in line with expectations.
The revenue outside China has achieved rapid growth, and the procurement volume of key customers has increased rapidly. In terms of splitting, China's revenue is 165 million yuan (+ 79.44%) and foreign revenue is 186 million yuan (+ 96.73%). According to the top five customers disclosed, the company's key Chinese customers such as kinsay, Tebao and Hengrui have achieved rapid growth in procurement volume, while foreign countries have benefited from the continuous and stable increase in orders for related products from foreign downstream medical device customers The increase of product consumption and the development of overseas new customers brought by the promotion of clinical R & D Progress of downstream pharmaceutical R & D customers. In addition, in the past 21 years, the company mainly received 465733 million yuan (+ 112.45%) of technology royalties from the sales share of Xiamen Amoytop Biotech Co.Ltd(688278) pegbin.
R & D expenses and equity incentive expenses affect the apparent growth rate, and the actual endogenous profitability continues to improve. The annual gross profit margin of the company is 85.21% (-0.76pct). If the influence of share based payment is excluded, the gross profit margin of Chinese business is 79.77% (+ 1.72pct) and that of foreign business is 89.50% (basically the same). On the expense side, the annual sales / management / R & D / wealth expense ratio was 3.68% / 12.66% / 15.37% / - 0.08% respectively, with a year-on-year change of 1.12 / - 0.49 / 1.28 / - 0.26 PCT. in addition to the impact of equity incentive expenses on various businesses, the R & D expenses also entered phase II due to the self-developed peg irinotecan, with a year-on-year increase of + 105.22%. The net interest rate of the whole year after deducting non assets was 44.75%, which was basically flat year-on-year.
Orders on hand performed well, and projects under research continued to advance. The sales volume of the company in 21 years is 131117kg (+ 96.02%), and the average unit price is relatively stable. In addition, the company disclosed that at the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been performed or have not been performed is 175 million yuan, which is expected to ensure the revenue base of 22q1-q2 of the company. In the research project, PEG irinotecan project has successfully entered clinical phase II, the case enrollment is carried out as planned, and the second clinical indication has been submitted to ind; Jk-1119i project has completed the construction of pilot workshop and is expected to enter the clinical stage in the second half of 2022; Jk-2122h project has produced qualified registered samples and completed registration inspection. It is expected to enter clinical practice in 2022; Other R & D reserve projects are carried out as planned, and the progress is in line with expectations.
The application scenarios of PEG are constantly enriched, and the medium and long-term performance is still driven by sustained and rapid growth.
In the past 21 years, the company's performance has continued to improve. In addition to the contributions of Chinese commercial customers Kinsey and Hengrui, it also comes from the activity of overseas orders, indicating that overseas peg application scenarios are constantly enriched. The core competitiveness of the company's overseas expansion is mainly reflected in the understanding and technical reserves of new peg technologies and applications, based on the accumulation and deep understanding of PEG technology. Compared with its competitors, the company's R & D direction is diverse and cutting-edge. On the one hand, it can meet a variety of needs of overseas innovation and R & D. on the other hand, the company can provide customers with unique innovation services based on excellent peg technology. The benign interaction with downstream customers is conducive to the company to maintain its advantages over its competitors, optimize production capacity application and maintain profitability.
Maintain the "buy" rating. In the long run, the company is a leading enterprise in the global peg derivative industry, mastering the core technology of the whole industry chain of derivative production, and has obvious advantages in product quality and customer resources. It is expected to share the expansion bonus of PEG modification application market. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 257 / 356 / 500 million, corresponding to 47 / 34 / 24 times of the current PE, maintaining the "buy" rating.
Risk warning. The quantity of product orders is less than expected; The progress of customer cooperation is less than expected; New product development is not as expected; Competitive pressure is greater than expected.
