\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Core view
Event: the company released its annual report for 2021. In 2021, the company realized revenue of 385 million yuan (+ 56.30%), net profit attributable to parent company of 174 million yuan (+ 50.34%), and net profit attributable to non parent company of 164 million yuan (+ 40.58%).
Comments:
The company's performance met expectations, and the company's non covid-19 business maintained rapid growth. In 2021, the company's sales revenue of covid-19 virus epidemic prevention related products was 88 million yuan (+ 21.46%), and the revenue of non covid-19 virus epidemic prevention related products was 297 million yuan (+ 70.89%). By strengthening the research and development of key hot products, the company continues to launch high-quality products that meet the needs of customers, continuously enhances its market competitiveness, and the non covid-19 related revenue continues to grow rapidly. The company's non covid-19 business revenue increased from 47 million yuan in 2017 to 297 million yuan in 2021, with a compound annual growth rate of 58.5%. According to the company's 2022q1 forecast, the revenue of non covid-19 products reached 89-92 million yuan (+ 43.33% - 48.16%), which still achieved rapid growth under the influence of epidemic situations outside China. From the perspective of revenue splitting of product business, in 2021, the revenue of recombinant protein business, antibody, kit and other reagent business was 326 million yuan (+ 52.15%) and 40 million yuan (+ 99.99%) respectively. The business outside recombinant protein achieved rapid growth. The accompanying diagnosis business actively arranged by the company is expected to become a new business growth point of the company in the future.
The company's profitability remained stable and continued to increase R & D investment. In 2021, the gross profit margin of the company was 92.57% (+ 0.66pct) and the net profit margin was 45.05% (- 1.92pct), which continued to maintain a high profit level. The rates of sales, management, R & D and financial expenses were 18.53% (+ 4.01pct) / 11.55% (+ 3.40pct) / 15.47% (+ 3.03pct) / - 0.54% (- 1.78pct) respectively. Due to the expansion demand of non covid-19 business in 21 years, the rates of sales and management expenses increased slightly. The company continued to increase its R & D investment and expand its R & D team. In 2021, the R & D expenditure increased to 60 million yuan (+ 94.30%), and the R & D personnel increased to 122 (+ 76.81%). Several projects such as car-t cell immunotherapy product and technology development platform, difficult drug target membrane protein expression and nano disk assembly platform, in vitro diagnostic key reagents and technology research and development (including covid-19 virus) were promoted in an orderly manner, The company's technology and product competitiveness were further improved.
Deeply cultivate old customers + expand new customers, and the company's performance at home and abroad has increased rapidly. The company adopts the sales strategy of "direct sales first, supplemented by distribution", and its customers are mainly concentrated in industrial enterprises in the pharmaceutical industry chain. Through deep cultivation of existing customers, continuous exploration of the needs of old customers and expansion of new customers, the company's overseas performance continued to grow rapidly. In 2021, the company's domestic revenue and overseas revenue were 161 million yuan (+ 102.46%) and 224 million yuan (34.38%) respectively, of which overseas revenue accounted for 58.29%.
Profit forecast and investment suggestions: Based on the company's 2021 annual report, 2022q1 performance forecast and the impact of covid-19 epidemic, we slightly revised the previous forecast and increased the forecast for 2024. It is estimated that the company's revenue will be 524.5/755.3/106500 million yuan from 2022 to 2024, with a year-on-year increase of 36.2% / 44.0% / 41.0% respectively; The net profit attributable to the parent company was 260.9/375.2/512.6 million yuan respectively, with a year-on-year increase of 49.7% / 43.8% / 36.6% respectively. The latest closing price corresponding to PE is 45 / 31 / 23 times respectively. The demand for biomedical research and development outside China continues to be strong. The company's overseas layout is ahead of its Chinese counterparts. In recent years, the company's product quality has been continuously improved, with price advantages and brand influence. In the future, with the weakening of the impact of the epidemic and the further expansion of the sales team in Europe and the Asia Pacific region, the company's performance is expected to continue the rapid growth trend and maintain the "buy" rating.
Risk warning: loss of customers; Sales are less than expected; New product development is not as expected; Overseas business expansion was less than expected.
