\u3000\u3 Guocheng Mining Co.Ltd(000688) 315 Novogene Co.Ltd(688315) )
Novogene Co.Ltd(688315) publish the 2021 annual report. In 2021, the operating revenue reached 1.866 billion yuan (a year-on-year increase of 25.3%); The net profit attributable to the parent company was 225 million yuan (a year-on-year increase of 515.7%); The net profit attributable to the parent company after deduction was 176 million yuan (a year-on-year increase of 696.1%). Quarter by quarter: 2021q4 achieved an operating revenue of 590 million yuan (a year-on-year increase of 10.2%); The net profit attributable to the parent company was 95.93 million yuan (a year-on-year increase of 8.1%); The net profit attributable to the parent company after non deduction was 76.28 million yuan.
Viewpoint: the company has overcome the adverse growth of epidemic situation at home and abroad, enabled the service ability of automation + intelligence + informatization, and the gross profit margin of each business line has increased significantly; From scientific research to “scientific research + clinical”, continuously innovate technology and solution system, and open the ceiling of growth.
The scale effect is superimposed, the automation efficiency is improved, and the gross profit margin is significantly higher than that of the previous year. Sub product lines: 1) basic scientific research services of life sciences achieved an income of 656 million yuan (accounting for 35.1%, with a year-on-year increase of 27.7%), and the gross profit margin was 54.3% (with a year-on-year increase of 7.6pct); 2) Medical research and technical services achieved a revenue of 273 million yuan (accounting for 14.6%, with a year-on-year increase of 8.5%), and the gross profit margin was 43.4% (with a year-on-year increase of 6.0 PCT); 3) The revenue of sequencing platform services was 704 million yuan (accounting for 37.7%, with a year-on-year increase of 38.8%), and the gross profit margin was 34.5% (with a year-on-year increase of 13.7 PCT); Sub regions: China achieved revenue of 1.198 billion yuan (accounting for 64.2%, with a year-on-year increase of 24.6%), and gross profit margin of 43.5% (with a year-on-year increase of 8.2pct); The revenue from Hong Kong, Macao, Taiwan and overseas reached 666 million yuan (accounting for 35.7%, with a year-on-year increase of 26.4%), and the gross profit margin was 41.7% (with a year-on-year increase of 7.1pct).
The company has a firm strategy to actively promote the global deployment of centralized laboratories, improve service accessibility and responsiveness, and continue to consolidate its leading position in the field of gene sequencing. The company’s business covers about 70 countries and regions on six continents around the world. Among the top 100 global academic research institutions, the company’s customers account for 99%; Among the top 10 global pharmaceutical enterprises in terms of revenue, 9 have outstanding competitive advantages. Localized laboratories have been established in Tianjin, Nanjing, Singapore, the United States and the United Kingdom. It is planned to invest 1.739 billion yuan in the construction and expansion of laboratories at home and abroad, and improve the localization layout to improve customer service capacity.
We are optimistic about the company: Based on 11 years of industry know-how precipitation + scale effect + automation empowerment + strong customer stickiness, Novogene Co.Ltd(688315) the leading advantage in the field of scientific research gene sequencing services will continue to be consolidated, the clinical business will expand steadily and gradually realize in China for global.
Profit forecast and investment suggestions: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 267 million yuan, 386 million yuan and 530 million yuan, with a year-on-year increase of 18.6%, 44.7% and 37.5% respectively, and the corresponding PE will be 36x, 25X and 18x respectively. Excluding the impact of amortization of equity incentive expenses, it is expected to realize net profits of 302 million yuan, 402 million yuan and 532 million yuan respectively from 2022 to 2024, with a year-on-year increase of 34%, 33% and 33% respectively. Maintain the “buy” rating.
Risk warning: the impact of the epidemic on business development at home and abroad is less than expected; Risk of lifting the ban on restricted shares, etc.
