\u3000\u3 Guocheng Mining Co.Ltd(000688) 289 Sansure Biotech Inc(688289) )
Event: on April 18, 2022, the company released the results of the first quarter of 2021 and 2022: in 2021, the company achieved an operating revenue of 4.515 billion yuan, a year-on-year decrease of 5.22%; The net profit attributable to the parent company was 2.243 billion yuan, a year-on-year decrease of 14.29%; The net profit deducted from non parent company was 2.151 billion yuan, a year-on-year decrease of 17.05%. In the first quarter of 2022, the company realized an operating revenue of 1.44 billion yuan, a year-on-year increase of 23.81%; The net profit attributable to the parent company was 652 million yuan, a year-on-year increase of 4.78%.
Q1 performance in 2021 and 2022 met expectations, and the income of strategic production line reached the equity incentive target
In 2021, the company’s revenue was 4.515 billion yuan, a year-on-year decrease of 5.22%, of which the revenue of diagnostic reagents was 3.393 billion yuan, a year-on-year decrease of 12.54%, mainly due to the centralized purchase of covid-19 nucleic acid detection reagents in China and the price reduction, but the delivery volume of covid-19 nucleic acid kits increased by 135% year-on-year. In 2021, the revenue of diagnostic instruments was 851 million yuan, with a year-on-year increase of 30.38%, and the delivery volume of instruments increased by 75%. At present, the company’s testing services can provide more than 2200 testing items, with a revenue of 979281 million yuan in 2021, a year-on-year increase of 48.88%. In 2021, the company’s strategic production line business excluding covid-19, distribution of kits and instruments, testing services and other revenue was 758 million yuan, and the target value of equity incentive plan was 740 million yuan, laying a solid foundation for medium and long-term sustainable development.
Deepen the integration of “instrument + reagent + service” and continue to promote R & D innovation
The company is committed to building a platform company, forming a whole industry chain system solution integrating instruments, reagents, sequencing services, third-party medical testing services and co construction of molecular laboratories, participating in Zhenmai biology to expand the high-throughput sequencing platform, participating in the layout of POCT miniaturization of quantumdx company in the UK and pet testing of great pet medicine. The company pays attention to R & D and innovation. In 2021, the company invested 188 million yuan in R & D, with a year-on-year increase of 126.53%. 132 new foreign products were approved for registration and access. At present, there are more than 100 products under research, forming a whole industry chain system solution with gene technology as the core.
“5 + 10” overseas strategy to continuously explore the international market
In 2021, the company’s overseas revenue was 1.707 billion yuan, a year-on-year decrease of 29.63%, mainly due to the change of overseas epidemic prevention policy and the decline in the demand for nucleic acid detection kits. The company has gradually expanded its international network. At present, its products have been sold in more than 160 countries and regions. It has prepared to establish overseas subsidiaries in Indonesia, France, the United Kingdom and the Philippines, and set up offices in key countries such as Thailand and Brazil. In the future, it will focus on five regions in Europe, South Asia Oceania, the Commonwealth of independent states of North Asia, the Middle East, Africa and the Americas, and 10 countries such as France, the United Kingdom and the Philippines. In overseas markets, the company plans to further cultivate the local market, radiate neighboring countries and further expand its global influence through localized operation.
Profit forecast: Sansure Biotech Inc(688289) is a leading company in nucleic acid detection. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 4.831 billion, RMB 3.376 billion and RMB 3.469 billion respectively, the net profit will be RMB 2.267 billion, RMB 1.718 billion and RMB 1.827 billion respectively, and the EPS will be RMB 5.67, 4.29 and 4.57 respectively. The current share price corresponding to PE will be 7.31, 9.65 and 9.07 respectively, maintaining the “buy” rating.
Risk tips: covid-19 epidemic progress is uncertain, R & D is less than expected, exchange rate change is less than expected, and product market development is less than expected.
