\u3000\u30 Zhongyan Technology Co.Ltd(003001) 71 Tofflon Science And Technology Group Co.Ltd(300171) )
Event:
The company recently released its annual report for 2021, with a revenue of 4.192 billion yuan, a year-on-year increase of 54.83%, a net profit attributable to the parent company of 828 million yuan, a year-on-year increase of 78.59%, and a deduction of non attributable net profit of 760 million yuan, a year-on-year increase of 92%. The net profit attributable to the parent company is within the performance forecast range, which is in line with expectations.
Comments:
Revenue split: injection and stand-alone system: 1.381 billion yuan (+ 13.09%); Bioengineering single machine and system: 907 million yuan (+ 305.15%); Medical equipment and consumables: 499 million yuan (+ 104.97%); Inspection of packaging unit and system: 192 million yuan (+ 35.76%); API single machine and system: 170 million yuan (- 28.38%); Purification equipment and Engineering: 557 million yuan (+ 92.41%); Oral solid single machine and system: 111 million yuan (+ 112.38%). The bioengineering stand-alone machine and system and medical equipment and consumables make a great contribution to the company’s performance increment. The bioengineering stand-alone machine and system mainly benefit from the large-scale industrial chain of relevant equipment due to the construction of covid-19 vaccine and the rapid development of China’s biopharmaceutical industry. The medical equipment and consumables mainly benefit from the large-scale consumables for China’s biopharmaceutical production. Overall, the company’s bio pharmaceutical related fields grew rapidly, and the early layout gradually ushered in the harvest period.
Revenue target for 2022: the company has set a revenue target of 5.6 billion yuan for 2022 in its annual report, with a year-on-year growth rate of about 33%. Split the revenue structure. In order to achieve this goal, the company’s bioengineering single machine and system, medical equipment and consumables still need to contribute important increments. The company’s product layout has been basically improved, the customer recognition has been continuously improved, and the related products are expected to achieve high-speed and large-scale production.
Contract liabilities: by the end of 2021, the company’s contract liabilities amounted to 3.731 billion yuan, an increase of 85.53% over 2.011 billion yuan at the end of 2020, and the amount of contract liabilities maintained a significant increase. The net increase of Q4 contract liabilities was 418 million yuan, and Q1 / Q2 / Q3 were 326 / 4.4 / 536 million yuan respectively. Q4 contract liabilities increased steadily, indicating that the growth trend of the company’s orders remained unchanged and the prospect of orders was good.
R & D investment continued to increase: in 2021, the total R & D expenditure was 284 million yuan, with a year-on-year increase of 82.22%, accounting for 6.79% of revenue, compared with 5.77% in the same period of last year, an increase of 1.02 percentage points. In 2021, the company added 139 patents. By the end of 2021, the number of patents held by the company and its subsidiaries had reached 1154. In biopharmaceutical related fields, the company has cell amplification system based on disposable technology, car-t cell processing system, disposable biological reaction bag, disposable mixing bag, culture medium, filler and other products under research. In 2021, the number of R & D personnel of the company also increased from 396 in the same period of last year to 677, with a change ratio of 70.96%. It is expected that with the continuous R & D investment of the company, new products will be launched, the performance of the original products will be gradually improved, and the product capacity will be continuously enhanced.
Profit forecast and investment suggestions:
Taking into account the rapid development of the biopharmaceutical industry and the continuous increase in the number of products of the company, it is expected that the revenue will be RMB 5.622/74.28/9.741 billion and the net profit attributable to the parent company will be RMB 121/14.77/1.961 billion in 2022 / 2023 / 2024. The company’s biopharmaceutical related equipment and consumables are expected to increase rapidly and maintain the “buy” rating.
Risk warning: the local epidemic situation in China has repeatedly affected the delivery process of the company; New orders are less than expected; The product volume is less than expected.
