\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 85 Amoy Diagnostics Co.Ltd(300685) )
The company's annual report performance is in line with expectations and the business development trend is good. In 2021, the company achieved an annual operating revenue of 917 million yuan, a year-on-year increase of + 25.90%; The net profit attributable to the shareholders of the listed company was 240 million yuan, a year-on-year increase of + 32.86%, and the net profit attributable to the parent company after deduction was 216 million yuan, a year-on-year increase of + 46.64%. Despite the impact of multiple outbreaks in China and the continuous spread of the international epidemic, the company's operating revenue and profit side still maintained steady growth, and its business development trend was good. The continuous growth of the company's performance is expected to be mainly due to the further promotion of the company's multi gene joint test products and the continuous high-volume of BRCA and ngs10 gene detection kits. It is expected that with the approval of pcr-11 gene in Japan and incorporated into medical insurance, and the approval of the first domestic tumor immune drug concomitant diagnosis product PD-L1, China's international market is expected to further develop.
Sustained R & D investment and long-term development are worth looking forward to. In 2021, the company continued to maintain high R & D investment, with a total investment of 156 million yuan, a year-on-year increase of + 35.63%, accounting for 17.02% of operating revenue, which continued to remain high. In 2021, the company added 6 invention patents and made phased progress in a number of products: the company's innovative product HRD product based on ADX GSS algorithm has obtained EU IVDD certification and entered the international market; Pcr-11 gene was approved in Japan and incorporated into Japanese medical insurance; The first domestic tumor immune drug concomitant diagnosis product PD-L1 was approved; The product layout of tumor early detection and recurrence (curative effect) monitoring continued to be promoted. In addition, with the reduction of amortization of equity incentive expenses of the company, the management expense ratio decreased to 7.12% throughout the year, the performance growth rate was faster than the revenue growth, the operation quality was continuously improved, and the long-term development was worth looking forward to.
Tumor diagnosis industry leader, business in China and abroad go hand in hand. The company is based on ADX arms ®、 SuperARMS ®、 ddCapture ®、 ADx-Handle ®、 NGS platform technology. At present, 24 kinds of single gene and multi gene molecular diagnosis products have been approved by nmpa for listing. It is the most complete and leading enterprise in the industry, and many products are still exclusive to China. At the same time, many products have successfully entered overseas markets and developed countries, and have successively reached clinical cooperation with well-known pharmaceutical enterprises such as AstraZeneca, Pfizer, Eli Lilly (Loxo), Johnson & Johnson, Merck and so on. The company has sufficient technical reserves in the field of tumor concomitant diagnosis. With the continuous promotion of product internationalization, the leading position in this field is expected to be more stable.
Profit forecast and investment suggestions
Due to the impact of the epidemic in 2021 on the short-term performance trend and a slight decrease in the gross profit rate, we reduced the growth rate of revenue from testing reagents and testing services, fine tuned the low gross profit margin, and adjusted the EPS forecast for 202224 to 1.43/1.87/2.35 (the EPS forecast for 22-23 was 1.57/1.95). According to the comparable company, 40 times PE in 22 years is given, and the corresponding target price is 57.2 yuan, maintaining the "overweight" rating.
Risk tips
If the company's new product marketing is not as expected, it will have an adverse impact on the overall performance
