\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 85 Amoy Diagnostics Co.Ltd(300685) )
Event: the company released the annual report of 2021, and the performance basically met our expectations. In 2021, the company achieved a revenue of 917 million yuan, a year-on-year increase of 25.90%; The net profit attributable to the parent company was 240 million yuan, with a year-on-year increase of 32.86%, and the net profit not attributable to the parent company was 216 million yuan, with a year-on-year increase of 46.54%.
Comments:
With the stable leading position of diagnosis and the rapid growth of products: the company is mainly engaged in the R & D, production and sales of tumor precision medical molecular diagnosis products, and provides corresponding testing services. The company takes the hospital market as the main track of the company, steadily promotes the internationalization strategy, and steadily implements the registration and access of overseas products, Further consolidate Ed’s leading position and global brand influence in the field of accurate tumor diagnosis. In terms of testing reagent business, the company achieved a revenue of 699 million yuan in 2021, with a year-on-year increase of 23.83%. The new sdc2 gene methylation testing kit obtained the registration certificate of class III medical devices; In terms of testing services, the company achieved a revenue of 155 million yuan, a year-on-year increase of 33.43%; In terms of drug clinical research services, the revenue was 54 million yuan, a year-on-year increase of 26.97%. The growth of the company’s multi line business is stable, and the revenue contributed by mature products is strong.
China has obvious channel advantages and strong international market expansion: the company has further improved its sales channels in the Chinese market, covering the direct sales network of more than 500 hospitals in China. At the same time, it is equipped with complete market, medical and technical support teams. Under the overall situation of the spread of the epidemic in China, the company still achieved 812 million revenue in 2021, with a year-on-year increase of 30.95%. In terms of overseas markets, by the end of 2021, the company had more than 50 international business and BD team, with wholly-owned subsidiaries in Singapore, Hong Kong and Canada and European logistics center in the Netherlands. After years of accumulation, the company’s products have gained a firm foothold in East Asia and EU markets and will further expand to Southeast Asia, North America and other markets. During the reporting period, the company achieved a revenue of 105 million yuan. Excluding the revenue of covid-19 detection reagent, the tumor molecular diagnosis products achieved rapid growth year-on-year.
Technology accumulation has been fruitful, and the innovation direction has been actively arranged: the company focuses on the field of molecular diagnosis of tumor precision medicine. The company has developed four technologies required for tumor precision medicine: PCR, ngs, fish and IHC. The products cover major cancer species. By the end of 2021, the company has successfully developed and approved 24 tumor concomitant diagnosis products. Recently, the company’s PD-L1 antibody reagent (immunohistochemical method) has been officially approved by nmpa for listing, It has become the first domestic PD-L1 concomitant diagnostic kit approved by nmpa in China. At the same time, aiming at the innovation direction of the industry, the company actively makes layout, and actively cooperates with top pharmaceutical enterprises at home and abroad, such as pilfa, AstraZeneca, Johnson & Johnson, Amgen, Lilly, Merck and so on; In terms of sequencing technology, the company recently invested in ust company to layout ngs, nanopore sequencing and other fields. To sum up, the company will form core barriers and maintain its leading position by virtue of its accumulation in technology and continuous innovation layout.
Profit forecast, valuation and rating: the company is the leader in cancer diagnosis in China, casting excellent brand advantages and industry status, but considering the impact of the epidemic on the company’s routine business. We slightly lowered the company’s EPS for 22-23 years to 1.44/1.92 yuan (the original forecast was 1.47/2.00 yuan, down 2% / 4% respectively). At the same time, we introduced the 24-year EPS forecast value to 2.56 yuan, with a year-on-year increase of 33.0% / 33.2% / 33.7% respectively. The current price corresponds to 32 / 24 / 18 times of PE for 22-24 years, maintaining the “buy” rating.
Risk warning: product development and approval are less than expected, and market competition intensifies.
