\u3000\u3 Guocheng Mining Co.Ltd(000688) 056 Beijing Labtech Instruments Co.Ltd(688056) )
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 369 million yuan, a year-on-year increase of 5.81%, and a net profit attributable to the parent company of 69.41 million yuan, a year-on-year increase of 6.44%; In 2021q4, the net profit attributable to the parent company was 16.09 million yuan, a year-on-year decrease of 44.40%; It is proposed to distribute a cash dividend of 0.35 yuan per share (including tax). The company also released the first quarterly report of 2022. In 2022q1, the operating revenue was 77.48 million yuan, a year-on-year decrease of 2.60%, and the net profit attributable to the parent was 11.92 million yuan, a year-on-year decrease of 18.02%.
The income of medical and disease control industries increased rapidly, while the income of environmental protection, food and scientific research institutes decreased. In 2021, the sales revenue of the company’s related products in the medical industry / disease control industry increased significantly, respectively 404651458458 million yuan, a year-on-year increase of 36.26% / 40.38%; The acceleration of the development of the medical industry is mainly due to the increase in the income of medical water recycling products cooperated with Varian, while the increase in the income of the disease control industry is mainly due to the epidemic situation. The increase of national investment in the industry increases the expected demand for products. On the other hand, the company’s sales revenue in related fields of food and drug research institutes / universities and colleges decreased, mainly due to the slowdown of procurement expenditure due to the impact of the epidemic on the procurement plans of universities and government departments. In addition, the company’s products achieved a breakthrough in nuclide analysis in the nuclear industry, with a revenue of 5.5135 million yuan in 2021. Due to the epidemic situation in 2022q1, the sales of some products of the company and the delivery of laboratory orders were blocked periodically. In addition, the company continued to increase the investment in R & D expenses (R & D expenses in 2022q1 increased by 15% to 8.8 million yuan year-on-year, accounting for 11.36% of operating revenue). The operating revenue of the company decreased by 2.60% to 77.48 million yuan year-on-year, and the net profit attributable to the parent decreased by 18.02% to 11.92 million yuan year-on-year.
The company achieved a breakthrough in ICP-MS sales in 2021, and its products passed the verification in the semiconductor field. The company successfully completed the research project of inductively coupled plasma mass spectrometer (ICP-MS), and successfully realized product sales in many fields (especially in the chip production line of semiconductor head enterprises, which successfully passed the verification and was recognized by customers). In 2021, the company realized an operating revenue of 3.0392 million yuan. The technical advantages and scarcity of new product introduction made its profitability ideal, with a gross profit margin of 70.97%. In the future, the company’s ICP-MS products will continue to make efforts in the fields of medical treatment and semiconductor, and strive to realize the continuous increase of sales scale.
Maintain the “overweight” rating: due to the impact of the epidemic, the sales of some products and the business development of the complete set of laboratory solutions of the company have been blocked. We have lowered the profit forecast for 22 / 23 and introduced the profit forecast for 24 years. It is estimated that the net profit attributable to the parent company in 202224 will be 81 / 101 / 115 million yuan respectively (down 15% / down 18% / new), and the corresponding EPS will be 1.21/1.51/1.72 yuan respectively. The current share price corresponds to 25 / 20 / 17 times of PE in 22-24 years. On the one hand, the company maintains a leading position in the sample pre-processing instruments in the traditional subdivided advantageous fields through the coverage of the whole product line and automation reform. On the other hand, the company opens a new performance growth point through the independently developed ICP-MS mass spectrometer. Under the background of domestic substitution of experimental analysis instruments, the company is expected to maintain the continuous growth of performance and maintain the “overweight” rating.
Risk warning: market development and product sales are not as expected; The company’s profitability is damaged due to the change of agency business; Adjustment risk of secondary new shares
