\u3000\u3 Guocheng Mining Co.Ltd(000688) 690 Suzhou Nanomicro Technology Co.Ltd(688690) )
Event: the company released the first quarterly report of 22 years. In Q1, the operating revenue was 141 million yuan (+ 111.70%), the net profit attributable to the parent company was 61 million yuan (+ 176.23%), and the net profit attributable to the parent company after deduction was 56 million yuan (+ 176.56%). The overall performance slightly exceeded expectations.
Revenue continued to grow at a high rate, laying the foundation for annual performance. In the first quarter, the company continued the rapid growth trend in recent years and maintained a growth rate of more than 100%, mainly due to the significant increase in the revenue of affinity chromatography media, ion exchange chromatography media, silica gel chromatography filler, magnetic beads and other products. According to the past data, Q1, as the off-season of sales, still achieved excellent growth, and the rapid growth of annual revenue has a solid foundation. In the medium term, thanks to the company’s good customer expansion and the commercialization of clinical orders, it is expected to maintain rapid growth.
The gross profit margin is stable month on month, and the profit can be increased significantly year-on-year. The overall gross profit margin of Q1 company was 83.73%, with a year-on-year increase of 5.75pct. Thanks to the expansion of sales scale, it has stabilized at more than 83% month on month. In terms of expense rate, the total expense rate during the first quarter was 35.67%, with a year-on-year decrease of 1.42pct, of which the sales / management / R & D / financial expense rates were 13.52% / 11.15% / 11.41% / – 0.42% respectively. The R & D expense rate decreased relatively, and still maintained a rapid growth in absolute value. Corresponding to Q1, the net profit margin increased by 10.57pct to 43.90%. With the rapid expansion of the company’s production and sales scale, the profitability is expected to maintain a steady upward trend.
Maintain the “buy” rating. The company is a leading enterprise in the domestic chromatographic filler industry. Relying on the innovative advantages of nano microsphere bottom preparation technology, the company has accumulated and formed a relatively complete product line, large-scale production capacity and professional and efficient application technology service capacity. It is expected to achieve rapid growth under the vigorous development of downstream biopharmaceutical industry and the trend of domestic substitution. It is estimated that the net profit attributable to the parent company in the year 22 / 23 / 24 is RMB 298 / 431 / 637 million, corresponding to 90 / 62 / 42 times of the current PE, maintaining the “buy” rating.
Risk warning. Customer expansion is less than expected, the order volume is less than expected, the development of new products is less than expected, and the price drop is more than expected.
