\u3000\u3 Guocheng Mining Co.Ltd(000688) 105 Nanjing Vazyme Biotech Co.Ltd(688105) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022: in 21 years, the revenue was 1.869 billion yuan, a year-on-year increase of 19.44%, the net profit attributable to the parent was 678 million yuan, a year-on-year decrease of 17.46%, and the non net profit deducted was 644 million yuan, a year-on-year decrease of 20.90%. 22q1 achieved a revenue of 975 million yuan, a year-on-year increase of 80.07%, a net profit attributable to the parent company of 431 million yuan, a year-on-year increase of 28.18%, and a deduction of 413 million yuan of non net profit, a year-on-year increase of 25.79%. The performance is in line with expectations.
Comments:
Conventional business grew rapidly, and the three business segments were gradually improved
In 2021, the company’s regular business income was 719 million yuan, with a year-on-year increase of 91%, maintaining a high growth rate. Among them, the income from routine business of life sciences was 533 million yuan, a year-on-year increase of 66%; The revenue of routine diagnosis business was 10.4 billion yuan, an increase of 8.9% year-on-year; The income of biomedical business was 97 million yuan, a year-on-year increase of 774%.
Covid-19 antigen detection kit has become a new revenue growth point
Covid-19 related products of the company include nucleic acid detection reagent raw materials, antigen / antibody detection kits, etc., with a total revenue of 1.149 billion yuan in 2021, a year-on-year decrease of 3.25%; On March 11, 2022, the company’s antigen detection kit was registered in China. With the release of covid-19 antigen detection in China and the improvement of epidemic prevention and control demand, it is expected to continue to increase the volume and thicken the company’s performance.
The pace of overseas expansion has been accelerated and initial results have been achieved
On the one hand, adhere to R & D innovation as the core competitiveness and continue to increase R & D Investment: in 2021, the R & D investment was 230 million yuan, a year-on-year increase of 83.47%, and the R & D expense rate was 12.33%, an increase of 4.31 percentage points; On the other hand, continue to strengthen channel construction and overseas business expansion: in 2021, the sales expense rate was 17.10%, an increase of 5.10 percentage points. The overseas expansion effect was remarkable, and the overseas revenue was 270 million yuan, a year-on-year increase of 26.97%
Profit forecast and investment suggestions
Considering that China antigen detection is an incremental business, we expect the revenue of 22-23 years to be 3.06/2.83 billion yuan respectively (original value of 1.89 billion yuan and 2.17 billion yuan), and the net profit to be 8.9/9.3 billion yuan respectively (original value of 770 million yuan and 890 million yuan). At the same time, we also increase the 24-year profit forecast revenue to be 3.16 billion yuan, the net profit to be 1.13 billion yuan, EPS to be 2.23/2.33/2.82 yuan respectively, and the corresponding PE to be 36 / 35 / 29 times respectively, maintaining the “buy” rating.
Risk tips
Covid-19 epidemic repeatedly brings performance fluctuations; Intensified market competition; Sino US trade friction
