\u3000\u30 Zhongyan Technology Co.Ltd(003001) 71 Tofflon Science And Technology Group Co.Ltd(300171) )
Event: the company released its 2021 annual report, realizing an operating revenue of 4.192 billion yuan (+ 54.83%), a net profit attributable to shareholders of the listed company of 828 million yuan (+ 78.59%), and a net profit attributable to shareholders of the listed company of 760 million yuan (+ 92.00%) after deduction.
Biomedical equipment and consumables are growing rapidly, and the demand for traditional pharmaceutical equipment is stable. In terms of products, the revenue of bioengineering single machine and system is 907 million yuan (+ 305%), of which Tofflon Science And Technology Group Co.Ltd(300171) Haiwei, the subsidiary mainly engaged in biopharmaceutical chromatography system, has a revenue of 283 million yuan (+ 284%) and a profit of 68 million yuan (+ 1500%). The revenue of medical equipment and consumables is 499 million yuan (+ 105%), which is expected to benefit mainly from the large amount of disposable consumables, cell and gene therapy equipment. The revenue of single injection machine and system is 1.381 billion yuan (+ 13.1%), and the gross profit margin is 47.43% (+ 2.23 PCT); The revenue of oral solid single machine and system is 111 million yuan (+ 112%), which reflects that in addition to the rapid growth of demand for biological drugs, the demand and competition pattern of traditional drug equipment are still stable.
Overseas revenue grew rapidly and the internationalization strategy continued to advance. In 2021, the company’s overseas revenue was 1.040 billion yuan (+ 97.79%), accounting for 24.8%. Mainly due to the global development trend and capacity construction of biological macromolecular drugs such as antibodies and vaccines, the company’s biological stock solution related equipment has obtained more market opportunities and the overall solution capability of biological macromolecular equipment has been improved. During the reporting period, the company newly set up a number of subsidiaries such as Tofflon Science And Technology Group Co.Ltd(300171) (India) project abroad, which reflects that the company continues to strengthen the layout and expansion of the international market and gradually improve the penetration rate of the overseas market.
The layout of consumables continues to be improved, and the one-stop service ability is gradually taking shape. In 2021, the company completed the acquisition of 51% equity of Qianchun biology and participated in Hangzhou Sepp; Steadily promote the research and development of various types of affinity chromatography media / large molecular reaction bags and disposable biological reaction bags. The company has formed a complete consumables scheme in disposable bags (reaction bags liquid preparation bags liquid storage bags), reagents (culture medium cryopreservation protective solution), fillers, filtration (microfiltration deep ultrafiltration nanofiltration) and hard packaging materials, forming a “instrument + equipment + consumables” one-stop service capability, and building a high barrier and customer stickiness.
Capital expenditure accelerated and contract liabilities continued to grow. The amount of construction in progress of the company was 187 million yuan, and the cash paid for the construction of fixed assets, intangible assets and other long-term assets was 454 million yuan, which increased significantly year-on-year, reflecting the acceleration of the company’s capital expenditure. In the business plan, the company proposes that in 2022, the company will strive to achieve an operating revenue target of RMB 5.6 billion. By the end of 2021, the company’s contractual liabilities had amounted to 3.731 billion yuan, an increase of 85.5% year-on-year and 12.62% month on month, reflecting that the company had sufficient orders on hand and laid a solid foundation for the completion of the business plan.
Profit forecast and Valuation: from the industry’s high-frequency data, the cumulative year-on-year growth rate of fixed asset investment in pharmaceutical manufacturing industry from January to February 2022 was 27.2%, which still maintained a high growth rate on the basis of the high base in the same period of 21 years, indicating that the prosperity of pharmaceutical equipment industry is still maintained at a good level. We believe that the new version of the measures for the administration of drug registration cancels the GMP certification and strengthens the dynamic supervision of the whole process of drug production and the whole life cycle of drugs. It is expected that the demand for pharmaceutical equipment will be released smoothly in the future, and the industry is expected to change from short-term explosive growth to long-term steady growth, and the periodicity will be weakened to a certain extent. The company’s performance is expected to be more growth rather than cyclical through measures such as the layout of biomedical equipment with higher prosperity, the provision of integrated solutions for equipment + consumables and international layout. We estimate that the company’s revenue from 2022 to 2024 will be 5.611 billion yuan, 6.900 billion yuan and 8.105 billion yuan respectively, with a year-on-year growth rate of 33.8%, 23.0% and 17.5%; The net profit attributable to the parent company was 1.111 billion yuan, 1.395 billion yuan and 1.694 billion yuan respectively, with a year-on-year growth rate of 34.2%, 25.5% and 21.4%. Based on the closing price on April 7, the corresponding PE was 21.2, 16.9 and 13.9 times respectively. The “buy” rating was given for the first time.
Risk tip: the prosperity of pharmaceutical equipment industry is declining; Overseas market development progress is lower than expected.
