\u3000\u3 Guocheng Mining Co.Ltd(000688) 179 Shanghai Aladdin Biochemical Technology Co.Ltd(688179) )
Event: on April 19, 2022, the company released its 2021 annual report. The annual cumulative operating revenue was 288million yuan, an increase of 22.82% year-on-year; The net profit attributable to the parent company was 89 million yuan, a year-on-year increase of 20.06%; The net profit deducted from non parent company was 86 million yuan, with a year-on-year increase of 22.74%. In a single quarter, 2021q4 achieved an operating revenue of 90 million yuan, a year-on-year increase of 21.29%; The net profit attributable to the parent company was 30 million yuan, a year-on-year increase of 13.70%; The net profit deducted from non parent company was 28 million yuan, with a year-on-year increase of 17.49%
The profitability of the company is stable. The difference between the formal annual report and the performance express mainly comes from the income tax difference. Compared with the performance express, the net profit attributable to the parent company of the company’s formal annual report increased by 4.7 million, mainly due to the difference in the amount of income tax. On February 23, 2022, the company announced that it was re evaluated as a high-tech enterprise and continued to pay enterprise income tax at the tax rate of 15%. Therefore, the amount of income tax in the formal annual report was adjusted. In terms of business, scientific research reagents continued to dominate in 2021, of which high-end chemical reagents achieved an operating revenue of 148 million yuan, a year-on-year increase of 22.00%; The operating income of life science reagents was 67 million yuan, a year-on-year increase of 29.46%. In terms of subregions, East China, as a traditional advantageous region, accounts for 51.96% of its income; The growth rate in new regions is faster, with the year-on-year growth rate in North China reaching 47.69%; The year-on-year growth rate in Central China reached 52.85%. In 2021, the company’s profitability remained stable, with a gross profit margin of 62.26%, a year-on-year increase of 1.48 PCT, and a net profit margin of 31.06%, a year-on-year decrease of 0.72 PCT; The year-on-year increase in sales expenses was 102.53%, mainly due to the significant increase in sales personnel, and the year-on-year increase in management expenses was 20.75%, mainly due to the increase in depreciation and amortization of projects under construction transferred to fixed assets.
Gradually get out of the influence of ERP system and inventory problems, and set sail again in 2022. Quarterly, the company’s 2021q1-q4 achieved operating revenue of 63 million yuan, 68 million yuan, 67 million yuan and 90 million yuan respectively, with year-on-year growth rates of 76.10%, 20.92%, – 1.68% and 21.29% respectively. Since 2021q2, the company’s performance growth has been lower than expected, which is mainly related to the replacement of ERP system and insufficient inventory preparation: (1) 2021q2 company replaced ERP system, which has an impact on procurement, delivery, R & D, production and other links, and has a certain impact on the company’s performance. Considering that the new system can operate independently and normally, we believe that the impact of system replacement on the company’s performance has been eliminated. (2) By the end of 2020, the company’s inventory balance had reached 101million yuan, an increase of 4.10% over the end of 2019, of which the company’s inventory balance had a negative growth in the second half of 2020. The company’s industry has high requirements for spot inventory, and the insufficient inventory reserves in 2020 will have an adverse impact on the performance growth in 2021. In 2021, the company began to actively replenish the spot inventory. By the end of 2021, the company’s inventory balance had reached 181 million yuan, an increase of 79.31% year-on-year at the end of 2020, laying the foundation for the demand growth in 2022. We believe that at this stage, the company has gradually stepped out of the impact of ERP system and inventory problems, and will set sail again in 2022.
Increase R & D investment and create a new growth point for biological reagent business. In 2021, the company continued to increase R & D investment, with R & D expenses increasing by 44.48% year-on-year, accounting for 7.88% of operating revenue, with a year-on-year increase of 1.18 PCT. By the end of 2021, the company had 119 R & D personnel, an increase of 46 over the end of 2020, an increase of 63%. In 2021, the company applied for 7 new patents, including 3 Chinese invention patents, 2 utility model patents and 2 design patents. In recent years, the rapid development of life science research fields such as genetic engineering, proteomics and molecular biology has laid the foundation for the wide demand for biological reagents. In 2021, the company set up a subsidiary specializing in the R & D business of biological reagents, focusing on the construction of recombinant protein library and antibody library with biological activity to meet the diversified needs of customers. The biological reagent business is expected to become a new growth point of the company.
Investment suggestion: we estimate that the company’s operating revenue from 2022 to 2024 will be 367 million yuan, 468 million yuan and 595 million yuan respectively, the net profit attributable to the parent company will be 115 million yuan, 147 million yuan and 188 million yuan respectively, the corresponding EPS will be 114 million yuan, 146 million yuan and 186 yuan respectively, and the corresponding PE will be 48.1 times, 37.5 times and 29.5 times respectively, giving the investment rating of overweight-a.
Risk tip: the risk of intensified industry competition; Covid-19 epidemic uncertainty risk; The risk of import substitution is less than expected.
