\u3000\u3 Shengda Resources Co.Ltd(000603) 127 Joinn Laboratories (China) Co.Ltd(603127) )
Key investment points
Event: the company released its 2021 annual report, realizing an operating revenue of 1.52 billion yuan, a year-on-year increase of 41%; The net profit attributable to the parent company was 560 million yuan, a year-on-year increase of 77%; The non net profit attributable to the parent company was 530 million yuan, a year-on-year increase of 81.6%.
The performance continues to grow rapidly, and the leading position of safety assessment is stable. In 2021, the company's performance was strong, and its core business preclinical evaluation business was still the main growth force. On a quarterly basis, 2021q4 achieved an operating revenue of 660 million yuan (+ 48.5%), a net profit attributable to the parent company of 310 million yuan (+ 80.5%), and a non net profit attributable to the parent company of 310 million yuan (+ 61.8%), maintaining rapid growth under the high base in 2020, with a record high profit end. We believe that the main reasons are: 1) the proportion of innovative drug projects has been continuously increased due to the innovation of technology platform; 2) The construction of personnel team was accelerated, the capacity expansion was continuously improved, and the operation efficiency was greatly improved; 3) The rise of monkey prices brings changes in the value of biological assets; 4) In 2021, the fund raised by the company's Hong Kong shares brought additional income.
The company has sufficient orders in hand and the new capacity is released quickly. In 2021, the company signed orders of more than 2.8 billion yuan, of which domestic companies undertook orders of more than 2.55 billion yuan, a year-on-year increase of 65%; The gross profit margin of overseas subsidiary biomere continued to improve. In 2021, it undertook orders of about 280 million yuan, a year-on-year increase of 75%. Accelerate the layout of new production capacity. 1) China's production capacity: about 7500 square meters of new animal houses will be put into use in Zhaoyan, Suzhou in 2021; Completion of construction and filing license of 1800 M2 P2 laboratory; The 20000 m2 test facility of Suzhou Zhaoyan phase II and the 3000 m2 test facility of Wuxi drug release evaluation center are expected to be put into operation in 2022h2; Zhaoyan Yichuang (Suzhou), a newly established subsidiary, leases a 9000 square meter laboratory and is expected to complete the decoration by the end of 2022; Guangzhou and Chongqing Zhaoyan safety assessment center are under orderly construction; 2) Overseas production capacity: Zhaoyan California invested about 6000 square meters of test facilities in 2021 to alleviate the pressure of biomere facilities. With the accelerated layout of the company's new production capacity, orders on hand are expected to continue to be fully released.
New businesses were promoted in an orderly manner, and the layout of international businesses was accelerated. In 2021, the company accelerated the construction of new business capacity, 1) carried out in-depth non clinical evaluation around innovative drugs, new technologies and new targets, and passed the first GLP examination of Chinese non clinical cros by Japanese PMDA with its subsidiary Suzhou Zhaoyan in December; 2) The mammalian somatic cloning technology platform of the subsidiary Suzhou Qichen won the first batch of somatic cloning Bama pigs and somatic cloning mice. The mammalian gene editing platform successfully created a series of gene editing models such as cell lines, mouse models and dog models of different diseases; Wuzhou base is under orderly construction; 3) The acquisition of biomere in 2021 will enhance the overseas brand strength, and the H-share listing will be completed during the reporting period, which is expected to accelerate the international layout and open the ceiling of future growth.
Profit forecast and rating. We expect that the EPS from 2022 to 2024 will be 2.01 yuan, 2.78 yuan and 3.61 yuan respectively, corresponding to the current stock price valuation of 58 times, 42 times and 32 times respectively, maintaining the "buy" rating.
Risk warning: the order is not as expected; The extension is not as expected.
