\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Event: the company released the first quarterly report of 22 years. In Q1, the company realized revenue of 114 million yuan (+ 27.73%), net profit attributable to the parent company of 54 million yuan (+ 31.66%), and net profit attributable to the parent company of 54 million yuan (+ 33.58%). The overall performance is in line with expectations.
The growth rate of conventional business was in line with expectations, and the sales volume of recombinant protein increased rapidly. In terms of splitting, the revenue of Q1 conventional business is 90 million yuan (+ 45.43%), and the growth rate is expected to be slightly affected by the epidemic situation in China. Thanks to the growing market demand for recombinant protein and other biological reagents outside China, the company's conventional business dominated by recombinant protein is expected to maintain a rapid development trend; The revenue of covid-19 related products is 24 million yuan (- 12.24%), and the company's covid-19 related products are mainly used for drug and vaccine research and development, which has been stable at about 20 million yuan in recent quarters, contributing to stable revenue.
The gross profit margin increased year-on-year, and the net profit margin tended to be stable. The overall gross profit margin of Q1 company was 95.48%, with a year-on-year increase of 1.65 PCT, mainly due to the significant scale effect of the expansion of recombinant protein sales. In terms of expense rate, the total expense rate during the first quarter was 47.74% (+ 10.50pct), and the expense rates of sales, management, R & D and finance were 17.70% / 12.23% / 19.73% / - 1.92% respectively. Except for financial expenses, other expense rates increased significantly year-on-year in 21q1. Thanks to the increase in investment income, the net interest rate in the first quarter increased by 1.43pct to 46.75% year-on-year, and the profitability increased steadily.
The company is one of the giants of recombinant protein reagents in China, and its core business is expected to maintain a rapid growth trend. In the field of recombinant protein reagents, the company focuses on providing target antigens required in the research and development of targeted therapeutic drugs, and has obvious advantages in some scarce products and application test data. In the medium and long term, the development of biological drugs in China promotes the rapid expansion of domestic demand. Driven by China's superimposed external demand in the overseas market, the core business of the company's recombinant protein reagent is expected to maintain a rapid growth trend. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 232 / 314 / 434 million, corresponding to 43 / 32 / 23 times of the current PE, maintaining the "buy" rating.
Risk tip: the 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.
