\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Event overview
The company announced the 2021 annual report and the performance forecast of the first quarter report of 2022:
(1) annual report of 2021: the operating revenue in 2021 was 385 million yuan, with a year-on-year increase of 56.30%; The net profit attributable to the parent company was 174 million yuan, a year-on-year increase of 50.34%; The net profit of non deduction was 164 million yuan, a year-on-year increase of 40.58%.
(2) performance forecast of the first quarterly report of 2022: the first quarterly report of 2022 achieved an operating revenue of 111 ~ 117 million yuan, with a year-on-year increase of 24.09% ~ 30.80%; The net profit attributable to the parent company was 50-56 million yuan, with a year-on-year increase of 23.05% ~ 37.81%; The non net profit deducted was 50 ~ 56 million yuan, with a year-on-year increase of 23.32% ~ 38.12%.
Analysis and judgment:
The performance growth is in line with market expectations, and the non covid-19 business continues to grow at a high speed
The company’s operating revenue in the first quarter of 2021 and 2022 increased by 56.30% and 24.09% ~ 30.80% year-on-year respectively, of which the non covid-19 business revenue increased by 70.89% and 43.33% ~ 48.16% year-on-year respectively. In the company’s strategic focus on industrial customers, the company continued to deeply cultivate China & foreign markets, and the performance side continued to show rapid growth, especially the non covid-19 related performance continued to contribute to the core performance increment. Looking forward to the future, the company will continue to expand its business diversification (detection services, antibodies, kits, etc.) in the fields of tumor, cart, immunoassay, marker protein and virus protein. Strategically, it will continue to focus on the needs of industrial customers and the development of international market. We judge that the company will continue to show a high-speed growth trend in the next 3-5 years.
(1) non covid-19 business continues to contribute to the core performance increment: take the median of 2022q1 performance expectation, that is, the non covid-19 business in 2022q1 achieved an operating revenue of 90.5 million yuan, with a year-on-year increase of 45.97%. It continues to show high-speed growth on the basis of 70.89% high-speed growth at the revenue end in 2021.
(2) continue high-intensity R & D and reserve core products: in 2021, the company invested 60 million yuan in R & D (accounting for 15.47% of revenue), with a year-on-year increase of 94.30%. The scale of R & D personnel reached 122, with a year-on-year increase of 76.81%. It carried out continuous high-intensity development in the fields of cell therapy, target protein, ELISA products, high-throughput SPR drug screening, IVD diagnostic reagents and tumor immunity. By the end of 2021, the company had nearly 2500 kinds (including more than 2200 kinds of recombinant proteins), which continued to show an upward trend and continued to contribute to the company’s performance.
The profitability has increased steadily, and continue to carry out R & D and sales market development
(1) profitability increased steadily: the gross profit margin and net profit margin of the company in 2021 were 92.57% and 45.05% respectively, with a year-on-year increase of 0.66pct and a decrease of 1.92pct respectively. In terms of sub businesses, the gross profit margin of recombinant protein (accounting for 84.58% of the overall revenue) was 95.96%, with a year-on-year increase of 1.28pct. We judge that the increase of gross profit margin is mainly affected by the overall scale effect and the gradual increase of the proportion of high gross profit margin businesses; The gross profit margin of antibodies, kits and other reagents (accounting for 10.33% of the overall revenue) was 85.10%, a year-on-year decrease of 6.64pct.
(2) continue to carry out high-intensity R & D and sales market development: the company’s sales expense rate in 2021 was 18.53%, with a year-on-year increase of 4.01pct. We judge that it is mainly due to the continuous development and deep cultivation of Chinese and foreign markets and the strengthening of market layout; The R & D expense rate was 15.47%, up 3.03 PCT year-on-year, and continued to carry out high-intensity R & D and strategic product reserves; The management expense ratio was 11.55%, with a year-on-year increase of 3.40pct, mainly due to the rise of relevant management costs caused by the continuous rise of income scale.
Performance forecast and investment suggestions
As the world’s leading recombinant protein supplier deeply engaged in industrial customers, looking forward to the future, the company will continue to benefit from the high vision of the Chinese industry and the continuous expansion of overseas customers, and its performance will continue to show rapid growth. Slightly adjust the performance of 22-23 years, that is, the revenue is adjusted from RMB 562809 million in 22-23 years to RMB 565/8.141186 million in 22-24 years, and the EPS is adjusted from RMB 3.25/4.73 in 22-23 years to RMB 3.31/4.72/6.99 in 22-24 years, corresponding to the closing price of RMB 145.48/share on April 14, 2022, and the PE is 43.95/30.79/ 20.82 respectively, maintaining the “buy” rating.
Risk tips
Failure risk of new product research and development, uncertainty risk of industry demand, covid-19 business uncertainty risk, loss risk of core technicians and exchange rate fluctuation risk.
