\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Event: on April 14, 2022, the company released the annual report of 2021 and the performance forecast of the first quarter of 2022. In 2021, the company achieved a total operating revenue of 385 million yuan, 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 deducted from non parent company was 164 million yuan, with a year-on-year increase of 40.58%. In 2022q1, the company is expected to realize an operating revenue of 111117 million yuan, with a year-on-year increase of 24.09% – 30.80%; The net profit attributable to the parent company is expected to be 50-56 million yuan, with a year-on-year increase of 23.05% – 37.81%; It is expected to realize a net profit of 50-56 million yuan, a year-on-year increase of 23.32% – 38.12%.
The annual performance of 2021 is in line with expectations, and the conventional business is growing rapidly. In 2021, the company’s main business grew rapidly, of which the operating revenue of conventional business (non covid-19 products) was 297 million yuan, a year-on-year increase of 70.89%; Covid-19 products achieved an operating revenue of 88 million yuan, a year-on-year increase of 21.46%. By business: recombinant protein achieved an operating revenue of 326 million yuan, a year-on-year increase of 52.15%; The operating revenue of testing services was 11 million yuan, a year-on-year increase of 92.17%; Antibodies, kits and other reagents achieved an operating revenue of 40 million yuan, a year-on-year increase of 99.99%. In terms of subregions, the Chinese market achieved an operating revenue of 161 million yuan, a year-on-year increase of 102.46%, of which the conventional business achieved an operating revenue of 136 million yuan, a year-on-year increase of 102.71%; The overseas market achieved an operating revenue of 224 million yuan, a year-on-year increase of 34.38%, of which the conventional business achieved an operating revenue of 161 million yuan, a year-on-year increase of 50.90%. In 2021, the company’s profit level remained relatively stable, with a gross profit margin of 92.57%, an increase of 0.66pct year-on-year; The net profit margin of sales was 45.05%, with a year-on-year decrease of 1.92pct, mainly related to the increase of expenses in various periods. In 2021, the company’s sales expenses increased by 99.53%, management expenses increased by 121.53% and R & D expenses increased by 94.30% year-on-year.
Affected by the repeated epidemic in China, the performance of 2022q1 is slightly lower than the market expectation. Since 2022, due to the stronger transmission ability of Omicron mutant, covid-19 epidemic counterattack has occurred in many places in China, among which the epidemic in East China has been the most serious since March 2022. The company’s main business is to provide biological research reagents such as recombinant protein for biomedical enterprises. China’s main customers are concentrated in East China. Due to the repeated impact of the Chinese epidemic, the R & D and production activities of some customers have been suspended periodically. At the same time, the customer visit activities of the company’s salesperson are also limited. In 2022q1, the company expects the operating revenue of conventional business (non covid-19 products) to reach 89-92 million yuan, with a year-on-year increase of 43.33% – 48.16%, slightly lower than the market expectation. We believe that with the implementation of the epidemic prevention and control policy, the epidemic situation in East China is expected to improve in Q2, the R & D and production activities of biomedical enterprises will gradually resume, the procurement demand delayed by the epidemic will rebound, and the company’s conventional business is expected to continue to maintain a high-speed growth throughout the year.
The world’s leading supplier of recombinant protein reagents, with increasing market influence. By the end of 2021, the company had 122 R & D personnel, a year-on-year increase of 76.81%. In 2021, nearly 2500 products of the company were sold and applied, including more than 2200 kinds of recombinant proteins. Other products involve antibodies, cytokines, kits, magnetic beads, culture media, fillers and other categories, which are widely used in drug screening and optimization of tumors, autoimmune diseases, cardiovascular diseases, infectious diseases and other diseases, development and optimization of diagnostic reagents, preclinical experiments and clinical trials Drug production process and process control (CMC) and other R & D and production links. The company adheres to the development strategy of “based on China and global layout”, and its sales channels cover Asia Pacific, North America and Europe. In 2021, the company established two new European subsidiaries to further explore the international market. By the end of 2021, the company’s products and services have covered nearly 70 countries and regions around the world, serving more than 5700 industrial and scientific research customers, and its market influence has been increasing.
Investment suggestion: we estimate that the company’s operating revenue from 2022 to 2024 will be 516 million, 722 million and 1016 million respectively, the net profit attributable to the parent company will be 246 million, 332 million and 453 million respectively, the corresponding EPS will be 308 yuan, 414 yuan and 566 yuan respectively, and the corresponding PE will be 47.2 times, 35.1 times and 25.7 times respectively, giving the investment rating of buy-a.
Risk warning: covid-19 epidemic uncertainty risk; Risks of intensified industry competition; The risk of import substitution is less than expected.
