\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Event: the company released its annual report for 21 years. The annual revenue was 385 million yuan (+ 56.30%), the net profit attributable to the parent company was 174 million yuan (+ 50.34%), and the net profit attributable to the parent company after deduction was 164 million yuan (+ 40.58%); In the fourth quarter, the revenue was 109 million yuan (+ 44.46%), the net profit attributable to the parent company was 53 million yuan (+ 38.92%), and the net profit attributable to the parent company after deduction was 43 million yuan (+ 14.00%). The company plans to pay a cash dividend of 15.00 yuan (including tax) for every 10 shares.
The company announced the performance forecast for the first quarter of 22 years. It is expected to realize revenue of 111117 million yuan (+ 24.09% – 30.80%), net profit attributable to parent company of 50-56 million yuan (+ 23.05% – 37.81%), net profit attributable to parent company of 50-56 million yuan (+ 23.32% – 38.12%) in Q1.
The growth rate of conventional business was in line with expectations, and the sales volume of recombinant protein increased rapidly. In terms of product types, the company’s recombinant protein revenue in 21 years was 326 million yuan (+ 52.15%), which was still the main component of revenue, and the annual sales volume was 25700 Mg (+ 58.87%).
In terms of splitting, the revenue from conventional business in 21 years was 297 million yuan (+ 70.89%), of which the revenue from Q4 was 87 million yuan (+ 65.29%), and the revenue from 22q1 was 91 million yuan (+ 45.74%) based on the median. Thanks to the growing market demand for recombinant protein and other biological reagents outside China, the company’s conventional business dominated by recombinant egg white is expected to maintain a rapid development trend; The annual revenue of covid-19 related products was 88 million yuan (+ 21.46%), of which Q4 revenue was 22 million yuan (- 3.53%), and 22q1 revenue was 24 million yuan (- 14.10%) based on the median value. Covid-19 related products of the company are mainly used for drug and vaccine research and development, which has stabilized at about 20 million yuan in recent quarters, contributing to stable revenue.
The gross profit margin remained high and the net profit margin tended to be stable. In 21 years, the company’s overall gross profit margin was 92.57%, with a year-on-year increase of 0.66pct, and the gross profit margin of Q4 remained above 95%. Among them, the gross profit margin of recombinant protein further increased to 95.96% due to the expansion of sales scale. In terms of expense rate, the annual sales, management and R & D expense rate increased year-on-year over the past 20 years. The total expense rate during the period was 45.01%, with a year-on-year increase of 8.67pct, of which the Q4 expense rate was 55.45%, with a year-on-year increase of 24.36pct. Thanks to investment income and government subsidies, the company’s 21-year net interest rate only slightly decreased to 45.05%, of which Q4 was 48.21%; The net interest rate of 22q1 is 46.49% based on the median, and the profitability remains stable.
The company is one of the giants of recombinant protein reagents in China, and its core business is expected to maintain a rapid growth trend. In the field of recombinant protein reagents, the company focuses on providing target antigens required in the research and development of targeted therapeutic drugs, and has obvious advantages in some scarce products and application test data. In the medium and long term, the development of biological drugs in China promotes the rapid expansion of domestic demand. Driven by China’s superimposed external demand in the overseas market, the core business of the company’s recombinant protein reagent is expected to maintain a rapid growth trend. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 232 / 314 / 434 million, corresponding to 50 / 37 / 27 times of the current PE, maintaining the “buy” rating.
Risk tip: the customer expansion is less than expected, the order volume is less than expected, the development of new products is less than expected, and the price drop is more than expected.
