\u3000\u3 Guocheng Mining Co.Ltd(000688) 105 Nanjing Vazyme Biotech Co.Ltd(688105) )
Event: Nanjing Vazyme Biotech Co.Ltd(688105) released the annual report of 2021. The total revenue of the whole year was 1.869 billion yuan, a year-on-year increase of 19.44%, including 719 million yuan of regular business revenue, a year-on-year increase of 91%, and 1.149 billion yuan of covid-19 related business revenue, a decrease of about 3.25% compared with the same period in 2020. During the reporting period, the net profit attributable to the parent company reached 678 million yuan, a year-on-year decrease of about 17.46%; Deduct 644million yuan of net profit not attributable to the parent company, a year-on-year decrease of 20.90%. Quarterly, the operating revenue of 2021q4 was 580 million yuan, with a year-on-year increase of 36.08% and a month on month increase of 25.25%.
The company also released the report for the first quarter of 2022. In 2022q1, the revenue was 975 million yuan, an increase of 80.07% year-on-year and 68.16% month on month; The net profit attributable to the parent company reached 431 million yuan, with a year-on-year increase of 28.18%, the gross profit margin was 74.77%, an increase of 5.73 PCT month on month, the net profit attributable to the parent company was 44.23%, and an increase of 22.15 PCT month on month. The profitability of the company in 2022q1 was significantly improved.
Comments:
The category of biological reagents has been continuously enriched and the brand effect has been continuously improved. In 2021, the revenue of life science business segment was 1.339 billion yuan. The company’s reputation in the field of domestic biological reagents has been gradually established, and hundreds of new scientific research SKUs have been newly developed, with a total of more than 800 kinds. The trust of users is increasing day by day, realizing a conventional revenue of 533 million yuan, a year-on-year increase of about 66%; The global covid-19 epidemic has gradually stabilized, the market demand has become increasingly clear, and the industry competition has intensified. The growth rate of covid-19 related biological reagent revenue has slowed down, with a revenue of 806 million yuan, a year-on-year increase of about 21%.
POCT diagnostic reagent business is booming. Taking advantage of the advantages of self-produced raw materials in the biological reagent business, the company has established a relatively rich POCT product line. In 2021, the revenue of this sector was 433 million yuan, including 89 million yuan in the conventional business, with a year-on-year increase of 104%. Affected by the epidemic prevention demand of covid-19 in China, the company’s covid-19 antigen detection kit entered the first batch of national supply list. Covid-19 detection reagent brought significant performance increment and significantly increased the income of 2022q1.
Achieve zero breakthrough in the field of biomedicine and actively layout overseas business. In 2021, the company established three product lines and services: new drug / vaccine R & D reagent, vaccine clinical cro service and vaccine raw materials, and provided relevant R & D and production raw materials for covid-19 mRNA vaccine. The revenue was 97 million yuan, with a year-on-year increase of 774%. The exploration of mode in the field of biomedicine was gradually mature and achieved leapfrog development. With the clinical promotion of downstream mRNA vaccine, the revenue of relevant sectors is expected to achieve further growth. In 2021, the company actively carried out the sales of overseas covid-19 related products, with an overseas revenue of 270 million yuan, a year-on-year increase of 26.97%. By the end of 2021, the international business department had 145 employees, of which 28 had been dispatched overseas to carry out sales and technical support.
The number of salespeople continued to increase and customer recognition continued to increase. At present, the company has formed a systematic marketing system and preliminarily established a marketing service network covering major regions of the country. In 2021, the company added 452 sales personnel, and the total size of the sales team has reached 972. Among them, there are nearly 600 salespeople in the biological reagent business, the response speed of customer demand is significantly accelerated, and the double help of the improvement of product quality and service attitude has continuously strengthened the reputation of the company’s products in the customer group and significantly increased the stickiness of users.
R & D expenses continued to grow, and the competitiveness of products was steadily improved. In 2021, the company continued to increase R & D investment and expand R & D team. The annual R & D investment reached 230 million yuan, with a year-on-year increase of 83.47%. By the end of 2021, the overall number of R & D personnel had reached 652, an increase of 236 over the previous year. The Life Sciences Division has developed 128 kinds of new products, upgraded the original products and improved their performance, converted several customized products to conventional categories, and newly developed animal quarantine terminal product lines and consumables product lines. The company’s R & D capability has been continuously enhanced, and the company has stably maintained high-quality product output, so that the company has always been in an advantageous position in the industry competition.
Profit forecast: it is estimated that the company’s revenue from 2022 to 2024 will be RMB 2.411/2.585/2.878 billion respectively, with a year-on-year increase of 29.0% / 7.2% / 11.3%. The net profit attributable to the parent company was 884 / 936 / 1033 million yuan respectively, with a year-on-year increase of 30.3% / 5.9% / 10.4%, corresponding to EPS of 2.21/2.34/2.58 yuan and PE of 36 / 34 / 31 times from 2022 to 2024. Maintain the “buy” rating.
Risk factors: the R & D Progress of new products is less than expected; Customer expansion is less than expected, the number of new orders is less than expected, and covid-19 orders are at risk of uncertainty.
