\u3000\u30 Jinzai Food Group Co.Ltd(003000) 12 Centre Testing International Group Co.Ltd(300012) )
Event 1: the company released its annual report for 2021. The operating revenue increased by 21.34% and the net profit attributable to the parent company increased by 29.19%
1) in 2021, the company achieved a revenue of 4.329 billion yuan, a year-on-year increase of + 21.34%, and Q4 achieved a revenue of 1.319 billion yuan, a year-on-year increase of + 8.16%; 2) In the whole year, the net profit attributable to the parent company was 746 million yuan, a year-on-year increase of 29.19%, and the net profit attributable to the parent company in Q4 was 193 million yuan, a year-on-year increase of 7.35%; 3) The non net profit deducted in the whole year was 647 million yuan, a year-on-year increase of + 34.90%, and the non net profit deducted in Q4 was 165 million yuan, a year-on-year increase of + 8.45%; 4) In the whole year, the net operating cash flow of the company was 1.073 billion yuan, a year-on-year increase of + 15.22%, the ratio of cash flow to net profit was 140.54%, and the operation quality was high.
In terms of splitting the company’s business, the product echelons are bigger and stronger: in terms of splitting the company’s business, the product echelons are bigger and stronger: the annual sales revenue of the five sectors of trade security, consumer goods testing, industrial testing, life sciences, medicine and medical services is RMB 5.74/4.95/8032087369 million respectively, with a year-on-year increase of 19.58% / 23.27% / 15.40% / 17.09% / 78.13% respectively, and the gross profit margin is 66.48% / 51.03% / 44.59% / 49.39% / 48.03% respectively, Compared with -2.31pct / + 7.57pct / – 1.67pct / + 0.03pct / + 11.35pct last year, the operating performance of all major sectors increased steadily, contributing to the high-quality development of the company.
The overall profitability was improved and the endogenous rapid development was realized: the annual gross profit margin of the company was 50.83%, year-on-year + 0.87pct, and the gross profit margin of Q4 was 47.22%, year-on-year -1.81pct; The annual net interest rate was 17.63%, year-on-year + 1.12pct, and Q4 net interest rate was 14.96%, year-on-year -0.13pct; The improvement of profitability is due to the continuous optimization of expense ratio. The annual expense ratio of the company was 33.10%, with a year-on-year decrease of 1.15pct, and the Q4 expense ratio was 33.28%, with a year-on-year decrease of 0.11pct, of which the annual sales / management / R & D / financial expense ratio was 17.76% / 6.38% / 8.69% / 0.28%, with a year-on-year change of -0.96pct / – 0.21pct / + 0.05pct / – 0.03pct respectively. Event 2: the company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 908 million, a year-on-year increase of + 19.16%; The net profit attributable to the parent company was 120 million, a year-on-year increase of + 19.80%; The net profit deducted from non parent company was 104 million, a year-on-year increase of + 49.02%; The gross profit margin is 48.24%, yoy-1.72 PCT; The net interest rate is 13.46%, yoy-0.16pct; During the first quarter, the cost rate of the company was well controlled. The cost rate in 2022q1 was 35.02%, a year-on-year decrease of 4.35pct, of which the cost rates of sales / management / R & D / finance were 18.72% / 6.94% / 9.47% / – 0.11% respectively, with a year-on-year change of -1.62pct / – 0.67pct / – 1.55pct / – 0.50PCT respectively.
Each business segment will lay a solid foundation for future development:
1) life science: in the past 21 years, the operating income of the company’s environmental testing business has increased steadily, and the gross profit margin has increased steadily; In recent years, the food testing business has continued to tap the potential of major customers, continuously improved its market share and occupied a leading position in the industry, especially in the two sub areas of cosmetic efficacy testing and pet food testing.
2) medicine and medical services: in the past 21 years, the company has benefited from the vigorous development of China’s pharmaceutical industry, and the business income of pharmaceutical testing has exceeded a new high; At the same time, the company continues to invest in the construction of new drug testing laboratories, and has opened a number of clinical medical laboratories across the country. In the future, it will continue to go deep into major cities and gradually complete the national network layout.
3) trade guarantee: the company continues to strengthen the maintenance of the existing market in the trade guarantee sector and continuously optimize the channel layout; With the rapid rise of new energy industry and the gradual maturity of 5g technology, the demand for reliability testing is gradually increasing.
4) consumer goods testing: with the continuous improvement of the market penetration of new energy vehicles, the company continues to increase investment to meet the testing needs of new energy vehicles. In the past 21 years, the company has achieved great results in the reliability of on-board electronic products and automotive electronic EMC. The platform capability has successfully ranked among the head testing institutions, and has successfully won the recognition of many well-known OEMs and orders from many head customers.
5) industrial testing: in the past 21 years, the company has vigorously expanded the capacity range of existing laboratories, actively explored the sinking market, and achieved rapid growth in measurement business. Among them, in the field of construction engineering, the team and ability of rail transit and flame retardant testing have been further strengthened, and breakthroughs have been made in qualification, participation in the formulation and revision of standards and participation in major projects; In the field of shipping, maritecpte Ltd has completed the integration, which will help the company’s development in this field in the future.
Profit forecast: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 903 million, 1124 million and 1381 million respectively, and the corresponding PE will be 39.13 million, 31.42 million and 25.58x respectively, maintaining the buy rating.
Risk warning: the risk that the credibility and brand are affected by adverse events, market and policy risks, and the risk that the investment does not meet expectations.
