\u3000\u3 Guocheng Mining Co.Ltd(000688) 690 Suzhou Nanomicro Technology Co.Ltd(688690) )
Core conclusion
Event: in 2022q1, the company realized a revenue of 141 million yuan, a significant year-on-year increase of 111.7%, a net profit attributable to the parent of 61 million yuan, a year-on-year increase of 176.24%, and a deduction of 56 million yuan from non attributable to the parent, a year-on-year increase of 176.56%. 2022q1 achieved rapid growth in both revenue and profit, mainly due to the domestic substitution trend in the chromatographic filler industry and the significant growth in the sales of affinity / ion chromatography media, silica gel chromatographic filler, magnetic beads and other products of the company as a leading microsphere supplier in China. The profitability was improved and the expenses were well controlled during the period. In 2022q1, the gross profit margin of the company was 83.73%, with a year-on-year increase of 5.75pct, and the net profit margin was 43.90%, with a year-on-year increase of 10.57pct. The improvement of the company’s profitability was mainly due to the continuous introduction of high value-added chromatographic media, magnetic beads and other products. During 2022q1, the company’s expenses were well controlled, with a sales expense rate of 13.52%, a year-on-year decrease of 0.15pct, a management expense rate (including R & D expenses) of 22.56%, a year-on-year decrease of 3.14pct, and a financial expense rate of -0.42%. Increase R & D investment, raise investment projects, and deepen business pipelines. In 2022q1, the company invested 16 million yuan in R & D, with a year-on-year increase of 69.5%, accounting for 11.41%. The company attaches great importance to product innovation and R & D and continues to increase R & D investment. Recently, the company raised additional funds to acquire about 44% equity of cypress instrument, expand the product line to the field of protein purification and IVD instruments and equipment, and constantly improve and deepen upstream and downstream technical cooperation. At the same time, the company plans to carry out Changshu nano micro 50t soft gel chromatography technical transformation project to enrich the company’s product line, aiming to bring comprehensive solutions to customers and enhance the company’s competitiveness.
Profit forecast and rating: considering that the company is a leading microsphere manufacturer in China and continuously optimizes and enriches its product structure, it is expected that the company will realize a revenue of 710 / 1095 / 1637 million yuan from 2022 to 2024, with a year-on-year increase of 59.0% / 54.3% / 49.5%; From 2022 to 2024, the net profit attributable to the parent company was RMB 290 / 4.4 / 670 million respectively, with a year-on-year increase of 54.2% / 53.0% / 50.1%, maintaining the “buy” rating.
Risk tip: product sales are less than expected, the competition pattern intensifies, the progress of new product research and development is less than expected, and the macro environment changes.
