\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 41 Chengdu Kanghua Biological Products Co.Ltd(300841) )
Event: on April 21, 2022, the company released the performance report for the first quarter of 2021 and 2022: in 2021, the company achieved an operating revenue of 1.292 billion yuan, a year-on-year increase of 24.44%; The net profit attributable to the parent company was 830 million yuan, a year-on-year increase of 103.28%; The net profit deducted from non parent company was 555 million yuan, with a year-on-year increase of 37.80%. In the first quarter of 2022, the company achieved a revenue of 267 million yuan, a year-on-year increase of 12.48%; The net profit attributable to the parent company was 135 million yuan, a year-on-year increase of 34.60%.
Q1 performance in 2021 and 2022 met expectations, and the production capacity of double crazy seedlings was gradually released
In 2021, the company realized a revenue of 1.292 billion yuan, of which the revenue of human diploid crazy seedlings was 1.265 billion yuan, with a year-on-year increase of 26.48%. The number of batches issued of human diploid crazy seedlings was 4.795 million, with a year-on-year increase of 29.47%. We believe that it is mainly due to the impact of covid-19 epidemic. At present, human diploid wild seedlings are still in short supply. The technical transformation of the second workshop of the company has been completed and will be put into operation in early June 2021. The annual production capacity will increase by 2 million, that is, the total production capacity will reach 5 million / year. The company is still expanding its production capacity. The Chengdu Kanghua Biological Products Co.Ltd(300841) vaccine production expansion project has an annual production capacity of 6 million human diploid cell rabies vaccines. At present, it is in the stage of infrastructure construction. With the gradual release of production capacity in 2022, the company’s human diploid crazy seedlings are expected to continue to increase in volume.
Focus on R & D and innovation and layout mRNA technology platform
In 2021, the company invested 788755 million yuan in R & D, with a year-on-year increase of 35.40%. Guided by innovation, the company laid out technologies such as recombinant protein VLP vaccine platform, polysaccharide protein conjugate vaccine platform and new vaccine adjuvant platform. The company expects three vaccines under development to apply for clinical trials from 2022 to 2023, including hexavalent norovirus vaccine, acyw135 meningococcal conjugate vaccine and tetravalent nasal spray influenza vaccine. The company promotes the establishment of mRNA vaccine technology platform. At present, it has reached cooperation with Xinran Bochuang in the research and development of herpes zoster vaccine, tuberculosis vaccine and rabies vaccine based on mRNA technology platform
Expand the pet vaccine sector, covering 3000 pet hospitals
Kanghua animal protection, a wholly-owned subsidiary of the company, has obtained the right to purchase pet rabies inactivated vaccine from Hangzhou Youben in Chinese Mainland, Macao, Hong Kong and Taiwan, China, and to distribute it in all channels of pet hospitals. Kanghua dynamic Insurance launched the Hillis Guardian plan. As of January 2022, Hillis plans to recruit more than 3000 pet hospitals. On January 22, 2022, the pet rabies inactivated vaccine began to be delivered, and Kanghua animal insurance signed the supplier centralized purchase cooperation agreement with xinruipeng pet medical group. It is expected that the pet vaccine sector will begin to contribute revenue to the company in 2022.
Profit forecast and investment rating: the company is an enterprise exclusively supplying diploid cell rabies vaccine. In 2022, covid-19 epidemic broke out in scattered spots. Due to the epidemic or affecting sales, the revenue in 20222023 was reduced from 2.148 and 2.856 billion yuan to 2.033 and 2.757 billion yuan. The revenue in 2024 is expected to be 3.477 billion yuan. The net profit attributable to the mother in 20222024 is expected to be 880 million yuan, 1.246 billion yuan and 1.508 billion yuan respectively, The current share price corresponds to the PE of 20222024, which is 11.76, 8.30 and 6.86 respectively, maintaining the “buy” rating.
Risk tip: the sales of human diploid crazy seedlings and other products are not as expected; The R & D progress is less than expected; The competitive risk caused by the relatively single product structure; Policy and regulatory risks.
