\u3000\u30 Jinzai Food Group Co.Ltd(003000) 12 Centre Testing International Group Co.Ltd(300012) )
The company disclosed its 2021 annual report and 2022q1 quarterly report. In 2021, it realized a revenue of 4.329 billion yuan, yoy + 21.33%, and a net profit attributable to the parent company of 746 million yuan, yoy + 29.10%; 2021q4 achieved a revenue of 1.318 billion yuan, yoy + 8.13%, and a net profit attributable to the parent company of 192 million yuan, yoy + 7.07%; In 2022q1, the revenue was 908 million yuan, yoy + 19.16%, and the net profit attributable to the parent company was 120 million yuan, yoy + 19.8%.
In 2021, the net profit attributable to the parent company achieved steady growth, which is expected to mainly benefit from the continuous development of businesses such as medicine, food, automobile, construction engineering and building materials. ① Medicine and medical services: the revenue was 369 million yuan, yoy + 78.13%. In 2021, benefiting from the vigorous development of China’s pharmaceutical industry, the company’s medical testing business revenue exceeded a new high. At present, the company’s medical laboratory has covered six regions such as Shanghai and Jiangsu. ② Life Sciences, with a revenue of 2.087 billion yuan, yoy + 17.09%, including environmental testing and food testing. The environmental testing industry fluctuated to some extent in 2021. By the end of 2021, the company had 16 laboratories shortlisted for the farmland quality standardization Laboratory of the Ministry of agriculture and rural areas, making full technical preparations for the third national soil survey. The growth rate of food testing business is steady, mainly cosmetics, and pet food is growing rapidly: 1) the testing market of cosmetics is developing rapidly under the tightening of national regulatory policies. Based on the rapid layout, the company has set up four testing bases in Shanghai, Suzhou, Guangzhou and Shenzhen; 2) With the rapid development of pet food testing industry, the demand for pet food testing is also growing rapidly. ③ Industrial testing: the company achieved a revenue of 803 million yuan, yoy + 15.40%, achieving steady growth, mainly including measurement, construction engineering, building materials, ships, etc. in 2021, the company vigorously expanded the capacity range of the existing measurement laboratory, actively explored the sinking market, and the measurement business achieved rapid growth. ④ Trade guarantee: the revenue is 574 million yuan, yoy + 19.5%, achieving steady growth. With the rapid rise of new energy industry and the gradual maturity of 5g technology, the demand for reliability testing is gradually increasing;. ⑤ Consumer goods testing: the revenue is 495 million yuan, yoy + 23.27%, mainly including automobiles, electronic appliances, light industrial toys, etc. the rapid growth of automobile testing is mainly due to the continuous improvement of the market penetration of new energy vehicles. In order to meet the testing demand of new energy vehicles, the company continued to increase investment, achieved great results in the reliability of vehicle electronic products and automotive electronic EMC in 2021, and acquired Germany Yima at the end of 2021, It is helpful for the company to expand its automobile testing business in the future.
It is expected that the company will maintain steady growth in 2022: 1) in 2022, the average personnel income of the company will be 409000 yuan / year, an increase of 11.4% year-on-year. The company is still in the stage of improving quality and efficiency. At present, there is still room to improve the capacity utilization of stock laboratories; 2) At present, the company has completed the layout of main fields and become one of the few comprehensive testing enterprises in China. The diversification of downstream fields is conducive to maintaining steady growth; 3) The company’s medical laboratory is in the process of expansion; 4) Some new areas, such as cosmetics, 5g communications, automotive electronics / new energy and other related testing businesses, will still have considerable growth in the future.
Investment suggestion: Based on the current situation of the company, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 920 / 11.3 / 1.38 billion respectively, and the corresponding PE will be 38x / 31x / 26x respectively, maintaining the “recommended” rating.
Risk tip: the environmental testing business is affected by the intensified competition in the industry. There is a risk that the profitability will decline too fast, and the load rate of new laboratories will rise too slowly, resulting in the risk of lengthening the loss cycle.
