\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, and the performance basically met the market expectations. In 2021, the company realized an operating revenue of 1.869 billion yuan, a year-on-year increase of 19.44%, and a net profit attributable to the parent company of 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 20.90%. In the first quarter of 2022, the company achieved an operating revenue of 975 million yuan, a year-on-year increase of 80.07%, a net profit attributable to the parent of 431 million yuan, a year-on-year increase of 28.18%, deducting a net profit not attributable to the parent of 413 million yuan, a year-on-year increase of 25.79%.
Comments:
As a leading enterprise of molecular scientific research reagents, the growth of routine business is strong: the performance of the company increased steadily in 2021. Under the condition of 20-year high base, the operating revenue increased by 19.44% year-on-year, mainly due to the increase of product and service sales and the growth of terminal demand in relevant downstream segments; The net profit attributable to the parent company decreased by 17.46% year-on-year, mainly due to the intensification of competition and the reduction of the ex factory price of covid-19 testing related raw materials and end products. In terms of specific business, the company achieved a revenue of 719 million yuan in the field of conventional business, an increase of 91% year-on-year, mainly due to the stable epidemic situation and the strong recovery of conventional business expansion; Covid-19 related businesses achieved a revenue of 1.149 billion yuan, a year-on-year decrease of about 3.25%, mainly due to the stabilization of the epidemic situation in China and intensified competition in 2021.
The business layout has been gradually improved, and R & D and sales have made concerted efforts: the company has gradually improved its layout around the three sectors of life science, in vitro diagnosis and biomedicine. In the field of life sciences, the company has developed more than 800 biological reagents and served more than 2400 scientific research institutes and enterprises; In the field of in vitro diagnosis, the company has obtained 105 medical device registration certificates and records, and more than 10 covid-19 testing related products have obtained about 120 overseas sales access, covering more than 2200 end customers; In the field of biomedicine, three product lines and services have been established, including new drug / vaccine R & D reagent, vaccine clinical cro service and vaccine raw materials, with a sales revenue of 97 million yuan, a year-on-year increase of 774%. At the same time, the company continued to make efforts in R & D and marketing, with R & D investment increasing by more than 83% year-on-year and more than 60 patents applied, effectively promoting the development of a number of products and platform construction of the company; In the past 21 years, the company’s sales personnel increased by nearly 87% year-on-year, effectively filling the gap in the sales network and improving customer coverage.
Covid-19 related businesses ushered in new opportunities and made incremental contributions in the field of antigen detection and mRNA vaccine: the company’s covid-19 antigen detection kit was approved in the first batch in China. After being approved, the company responded quickly, actively expanded production capacity, and achieved rapid volume in the first quarter of 22. In addition to the stable performance of conventional business, the company’s revenue increased strongly in the first quarter of 22, with a year-on-year increase of more than 80%. In addition, the company distributes core raw materials and evaluation services in the field of mRNA vaccine. With the promotion of domestic vaccine clinical trials, as an upstream enterprise of vaccine, the company will also usher in new opportunities for covid-19 related business development.
Profit forecast, valuation and rating: the company is a leader in molecular scientific research reagents, with steady growth in conventional business. Covid-19 antigen detection and mRNA business have contributed to the company’s increment in 22 years. After that, there may be the risk of intensified market competition. We adjusted the company’s EPS for 22-23 years to 2.24/2.38 yuan (the original forecast was 2.11/2.58 yuan, adjusted by + 6% / – 8% respectively), and introduced the EPS for 24 years to 2.74 yuan, with a year-on-year increase of 32.3% / 5.9% / 15.3%. The current price corresponds to 32 / 31 / 26 times of PE for 22-24 years, maintaining the “overweight” rating.
Risk warning: product promotion is less than expected risk and market competition intensifies risk
