\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 87 Pony Testing International Group Co.Ltd(300887) )
Performance review
On April 22, the company issued the annual report of 2021. In 2021, the company achieved an operating revenue of 2.007 billion yuan, a year-on-year increase of 40.7%, and a net profit attributable to the parent company of 220 million yuan, a year-on-year increase of 34.54%. The performance growth rate exceeded the expectation; Based on the calculation of q2.24 billion yuan, the net profit of q2.24 billion yuan increased by 2.76% year-on-year.
Business analysis
Multi field businesses jointly promoted the company’s performance growth: the company achieved rapid growth in revenue in traditional food, environment, medicine, pharmacy, automobile and other business areas. The revenue of life science, health and environmental protection business increased by 45.83% year-on-year, and the revenue of automobile consumer goods business increased by 18.35% year-on-year. The company’s laboratory capacity has been expanded, the performance bottleneck has been solved, and the new business expansion scenario is better. In terms of business, 1) medical and pharmaceutical testing: the company is deeply involved in large-scale nucleic acid screening in many places, which is expected to increase the company’s profits under the current severe epidemic situation. The company’s cro & cdmo business involves clinical medicine, toxicological and pathological testing, medical device testing, etc., and is about to enter the outbreak period. The company has a solid team of more than 200 and CNAs and CMA qualifications, In March 22, it acquired two medical measurement companies to promote the rapid development of medical devices and inspection segments; 2) Testing in the field of new energy vehicles: in 21 years, Pony Testing International Group Co.Ltd(300887) obtained the qualification certification of Byd Company Limited(002594) and Tesla and other new energy vehicle manufacturers. In March 22, it won the national new energy battery product safety selection project of the customs, and its testing ability was recognized to further improve the performance of Companies in this field; 3) Environmental testing: benefiting from the third national soil general inspection, the demand for soil testing continues to release, which will promote the business development of the company; 4) Military testing: in the past 21 years, the company has arranged military testing business, obtained relevant qualifications and continued to carry out relevant business; 5) Cosmetics testing: the industry supervision is becoming stricter, and the demand for industry testing is released rapidly. The company is expected to enjoy the industry dividend; 6) Food testing: the society pays more and more attention to food Shenzhen Agricultural Products Group Co.Ltd(000061) safety, and the company’s performance is expected to improve.
Profit adjustment
To maintain the profit forecast, we expect the operating revenue of the company from 2022 to 2024 to be RMB 2.691/31.47/3.706 billion respectively, the net profit attributable to the parent company to be RMB 329/4.74/594 million respectively, and the corresponding EPS to be RMB 2.06/2.97/3.72 respectively, maintaining the “overweight” rating.
Risk tips
Macroeconomic fluctuations, less than expected progress of laboratory production, intensified industry competition, etc.
