\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 42 Tellgen Corporation(300642) )
Key investment points
Event: the company announced the 2021 annual report and the first quarterly report of 22 years. In 2021, the company realized an operating revenue of 655 million yuan, a year-on-year increase of 33.70%, a net profit attributable to the parent of 161 million yuan, a year-on-year increase of 33.62%, and a deduction of 123 million yuan of non net profit, a year-on-year increase of 24.04%. 22q1 company’s revenue was 145 million yuan, with a year-on-year increase of 22.30%. The net profit attributable to the parent company was 5.27 million yuan, with a year-on-year decrease of 77.10%, and the net profit not attributable to the parent company was 3.07 million yuan, with a year-on-year decrease of 85.51%
The marketing reform has achieved good results, and the product volume is obvious in 2021. The rapid growth of the company’s performance in 2021 is mainly due to the restoration of China’s diagnosis and treatment order and the rapid expansion of products after the company’s marketing reform. The operating revenue of 21q4 was 200 million yuan (- 8.43%), the net profit attributable to the parent company was 55.52 million yuan (- 36.11%), and the non deduction was 35.16 million yuan (- 55.36%). The year-on-year decline in revenue and profit in a single quarter was mainly affected by the repeated disturbance of the epidemic situation, the number of terminal diagnosis and treatment and physical examination. The conventional products of 22q1 company are still negatively affected by the Chinese epidemic, but the increased demand for consumables of molecular diagnostic equipment under the epidemic has driven the rapid and large-scale production of the company’s agent varieties, and the revenue has achieved rapid growth. Due to the low gross profit margin of related products, the profit has decreased year-on-year.
Under the scale effect, the gross profit margin of reagents increased steadily, driving the overall profit margin to remain stable. In 2021, the company’s sales expense ratio was 27.71%, a year-on-year increase of 2.34pp, which was mainly due to the increase in depreciation expenses and personnel compensation due to the increase in installed capacity; The management expense ratio was 6.70%, with a year-on-year increase of 1.88pp, mainly due to the increase of equity incentive fee, and the financial expense ratio was – 0.61%, with a year-on-year decrease of 0.41pp; In 21 years, the company invested 727112 million yuan in R & D, an increase of 18.29% year-on-year, accounting for 11.11% of revenue; After the epidemic, reagent sales accelerated recovery and fixed amortization costs decreased, resulting in reagent gross profit margin of 77.54%, a year-on-year increase of 1.19pp, driving the comprehensive gross profit margin of 66.85%, a year-on-year increase of 0.46pp. In the 21st year, the net profit margin of the company was 24.60%, with a year-on-year decrease of 0.02pp, which remained basically stable.
Driven by special self exemption projects, the installation of downstream equipment is accelerated, the proportion of tertiary hospitals is increasing, and the reagent business is expected to maintain rapid growth. In 2021, the company’s revenue from in vitro diagnostic reagents was 562 million yuan, a year-on-year increase of 34.82%, accounting for 85.86% of the operating revenue; The revenue of immune, molecular, biochemical and other instruments was 88.2 million yuan, with a year-on-year increase of 31.13%, and the total installed capacity reached 859 units. Among them, we expect that the installed capacity of flow fluorescence is more than 180, which is significantly accelerated compared with previous years. It is mainly due to the significant advantages of the company’s characteristic flow fluorescence method in autoimmune disease detection in automation, detection speed and unit cost, which drives the speed of flow fluorescence installation; By the end of the 21st century, the company had about 1500 customers, including 150 new tertiary hospitals in the past 21 years, accounting for 70%. The subsequent consumption of relevant reagents is expected to accelerate. In addition, the company’s innovative products such as colorectal cancer and lung cancer methylation have begun to be sold one after another, which is expected to further contribute to incremental performance.
The development of chemiluminescence mainframe has been completed, and a variety of inspection items have been submitted for registration, providing sufficient guarantee for the rapid loading of subsequent reagents. In 2021, the company continued to accelerate the layout of chemiluminescence field. It is estimated that the installed capacity of tesmi i100, I200 and other equipment may reach 300. The biochemical immune compatible assembly line developed in cooperation with Hitachi also began to enter the hospital, which is expected to further drive the sales of relevant reagent products of the company. In addition, the company’s large-scale light-emitting machine has also completed the development work, and 23 chemiluminescence reagent projects have been submitted within 21 years, covering tumor, infection, hormone, metabolism and other fields. With the enrichment and improvement of the company’s inspection equipment and reagent layout, the products in the chemiluminescence field are expected to usher in rapid development in the future.
Profit forecast and Valuation: the profit forecast is adjusted according to the annual report data. It is expected that the reagent products are expected to increase rapidly after the epidemic. The gross profit margin of equipment may be adjusted due to market competition and sales strategy. From 2022 to 2024, the company achieved revenue of 822, 1038 and 1321 million yuan, with a year-on-year increase of 26%, 26% and 27%. From the previous 22 to 23 years, 974 and 1264 million yuan, and the net profit attributable to the parent company was 191, 243 and 308 million yuan, with a year-on-year increase of 19% and 27% 27%, 294 and 398 million yuan in the 22-23 years before adjustment, corresponding to EPS of 117, 148 and 188. Considering the continuous improvement of the company’s installed capacity of flow fluorescence and assembly line, it is expected to bring the continuous and rapid growth of reagent quantity in the long term and maintain the “buy” rating.
Risk warning: the risk of new product research and development, the risk of purchasing instruments and equipment and raw materials, the risk that the market promotion of new products does not meet the expectations, and the risk that the public information used in the research report may lag behind or not be updated in time
