\u3000\u30 Zhongyan Technology Co.Ltd(003001) 71 Tofflon Science And Technology Group Co.Ltd(300171) )
The company released its 2021 annual report. In 2021, the operating revenue reached 4.192 billion yuan (a year-on-year increase of 54.8%); The net profit attributable to the parent company was 828 million yuan (a year-on-year increase of 78.6%); The net profit attributable to the parent company after deduction was 760 million yuan (a year-on-year increase of 92.0%). Quarter by quarter: 2021q4 achieved an operating revenue of 1.31 billion yuan (a year-on-year increase of 55.3%); The net profit attributable to the parent company was 270 million yuan (a year-on-year increase of 53.8%); The net profit attributable to the parent company after deducting non-profit was 250 million yuan (a year-on-year increase of 58.8%).
Viewpoint: 2021 has a strong performance growth, a record high R & D investment, the layout of four major consumables has been completed, the globalization strategy has been accelerated, and the leader of domestic platform pharmaceutical equipment and consumables integration has set sail for the future.
The revenue side grew rapidly, the profit side performed better, and the R & D investment reached a record high. The gross profit margin in 2020 is 46.8% (the gross profit margin in 2020 is 17.21%), which is significantly improved. It is mainly due to the optimization of product structure. In 2021, the R & D expense rate was 6.8%, and the R & D expense investment was 285 million yuan (a year-on-year increase of 82.2%), mainly due to the increase of R & D projects, R & D personnel salary and equity incentive expenses.
By product line: biopharmaceutical equipment led the growth, while medical equipment and consumables doubled, thanks to the optimization of product structure and scale effect, and the gross profit margin of multiple businesses increased significantly. 1) Bioengineering stand-alone machines and systems: the sales revenue is 900 million yuan (a year-on-year increase of 305%), accounting for about 22% and the gross profit margin is about 59%, which is due to the accelerated expansion of production capacity of vaccine enterprises and innovative pharmaceutical enterprises outside China, and the sharp increase in the demand for raw liquid end products, driving the high growth of the sector; 2) Medical equipment and consumables: the sales revenue is nearly 500 million yuan (a year-on-year increase of 105%), accounting for about 12%, mainly due to the increase of disposable consumables and CGT related equipment consumables. 3) Injection single machine and system: the sales revenue is 1.38 billion yuan (a year-on-year increase of 13%), accounting for about 33% and the gross profit margin is about 47%. The proportion of this sector in the revenue decreases with the gradual maturity and volume of the new layout product line.
From a subregional perspective: seize the opportunity of epidemic prevention and control, cut into the supply chain of many well-known overseas pharmaceutical enterprises, and set up a number of new subsidiaries to help accelerate the internationalization strategy. The company’s overseas sales revenue was 1.04 billion yuan (a year-on-year increase of 54.8%), accounting for about 24.8% and the gross profit margin was as high as 67.2%. In 2021, the company successfully entered the procurement list of recipharm, the world’s fifth largest cdmo enterprise, r-pharm, a well-known pharmaceutical enterprise in Russia, and set up new subsidiaries in Hong Kong, Indonesia, Turkey, Australia, Dubai, Vietnam, South Africa and other countries or regions to accelerate the international layout. The company has been deeply engaged in overseas markets for many years, and its product popularity and brand influence have been continuously improved. It is expected that the proportion of overseas sales will continue to rise, driving the gradual improvement of profitability.
Profit forecast and investment suggestions: we expect the net profit attributable to the parent company from 2022 to 2024 to be 1.039 billion yuan, 1.390 billion yuan and 1.825 billion yuan, with a year-on-year increase of 25.5%, 33.8% and 31.3% respectively. The corresponding PE of the current stock price is 23x, 17x and 13X respectively. Excluding the impact of amortization of equity incentive expenses, the net profit attributable to the parent company from 2022 to 2024 will be 1.088 billion yuan, 1.417 billion yuan and 1.846 billion yuan, with a year-on-year increase of 31.5%, 30.2% and 30.2% respectively. Maintain the “buy” rating.
Risk warning: the epidemic affects the production and delivery of orders, which is less than expected; The sales promotion of new products is less than expected
