\u3000\u3 Guocheng Mining Co.Ltd(000688) 105 Nanjing Vazyme Biotech Co.Ltd(688105) )
Event overview
On April 21, 2022, Nanjing Vazyme Biotech Co.Ltd(688105) released the annual report of 2021 and the first quarterly report of 2022:
1) 2021 annual report: the operating revenue was 1.868 billion yuan, a year-on-year increase of 19.44%; The net profit attributable to the parent company was 678 million yuan, a year-on-year decrease of 17.46%; Net profit deducted from non parent company was 644 million yuan, a year-on-year decrease of 0.90%.
2) the first quarterly report of 2022: the revenue was 975 million yuan, with a year-on-year increase of 80.07%; The net profit attributable to the parent company was 431 million yuan, a year-on-year increase of 28.18%; Deducting the net profit not attributable to the parent company was 412 million yuan, with a year-on-year increase of 25.79%.
In 2021, conventional business maintained rapid growth, and covid-19 business brought abundant cash flow
In 2021, the company’s regular business income was 637 million yuan and covid-19 business income was 1.231 billion yuan. Covid-19 epidemic prevention products provided a strong boost to the company’s development.
In terms of business segments, 1) in the field of life sciences, the revenue was 1.339 billion yuan, including 533 million yuan from conventional business, a year-on-year increase of 66%, and 806 million yuan from covid-19, a year-on-year increase of 21%. By the end of 2021, the company has developed more than 800 kinds of biological reagents, and the types of end products are becoming more and more complete, serving more than 1000 scientific research institutes and more than 1400 industrial customers; 2) In the field of IVD, the revenue was 433 million yuan, including 89 million yuan from routine business, an increase of 104% year-on-year, 344 million yuan from covid-19 related business, a decrease of 34% year-on-year. The company independently developed and produced 6 instruments and obtained 105 medical device registration certificates and records. In addition, the company has more than 10 covid-19 testing related products and obtained about 120 effective overseas sales access; 3) In the field of biomedicine, the revenue was 97 million yuan, with a year-on-year increase of 77.4%. In terms of covid-19 vaccine raw materials, the company has completed the R & D and production of more than 10 enzyme raw materials.
By region, China’s revenue was 1.595 billion yuan, a year-on-year increase of 18.46%, and overseas revenue was 270 million yuan, a year-on-year increase of 26.97%. The company has initially completed the channel construction, customer development and team building of the first pilot country in the Southeast Asian market, and has set up three main bodies in Hong Kong, Indonesia and the United States. Up to now, the company’s international business department has 145 employees, of which 28 have been dispatched overseas to carry out sales and technical work.
Fully benefiting from covid-19 antigen self inspection in China, Q1 revenue in 22 years exceeded expectations
Under the high revenue base in the same period last year, the company’s Q1 in 2022 can still increase by 80.07% year-on-year. We believe that it mainly benefits from the higher than expected revenue of China covid-19 antigen self-test kit, which is expected to account for about half of the revenue. In 2022, the net profit attributable to the parent company in Q1 increased by 28.18% year-on-year, which was lower than the growth rate at the revenue end. It was mainly due to the company’s continuous expansion of business scale and increased personnel recruitment. The sales expenses, management expenses and R & D expenses were 90 million yuan, 49 million yuan and 71 million yuan respectively, with a year-on-year increase of 88.08%, 106.48% and 86.33% respectively.
Investment suggestion: as the leader of molecular biological reagents in China, with the orderly promotion of pipeline under research and the gradual improvement of global layout, the future performance growth of the company is certain. Considering the related increment of covid-19 business, we predict that the company’s revenue from 2022 to 2024 will be 24.46/22.83/2.851 billion yuan, and the net profit attributable to the parent company will be 1.00/10.22/1.374 billion yuan, corresponding to PE multiple of 32 ×/ thirty-one ×/ twenty-three ×。 Maintain a “recommended” rating.
Risk warning: covid-19 epidemic uncertainty risk; Product development is not as expected; Product gross profit fell.
