\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 39 Guangdong Hybribio Biotech Co.Ltd(300639) )
Event: on April 26, 2022, the company released the first quarterly report of 2022. 22q1 achieved an operating revenue of 1.511 billion yuan, a year-on-year increase of 147.87%; The net profit attributable to the parent company was 500 million yuan, a year-on-year increase of 190.64%; Net profit deducted from non parent company was 492 million yuan, with a year-on-year increase of 201.55%.
ICL business achieved an explosive growth of 224.17%, and covid-19 detection contributed a significant increment. In the first quarter of 2022, the company’s medical laboratory service revenue was 1.196 billion yuan, a year-on-year increase of 224.17%. Since 22q1, covid-19 epidemic has been repeated in Hong Kong, South China and East China. The company has actively participated in covid-19 epidemic prevention and control, and covid-19 business has increased significantly. We expect covid-19 detection revenue in 22q1 to reach more than 1 billion. Combined with the current development of covid-19 epidemic in China, we expect covid-19 nucleic acid detection business to continue to contribute stable revenue to the company. At present, 30 of the 35 medical laboratories deployed by the company in the country have been officially operated. In addition, many laboratories are under construction and are gradually building a nationwide inspection service network. In the future, with the gradual mitigation of epidemic prevention and control and the resumption of hospital routine diagnosis and treatment activities, the company’s routine ICL business is expected to usher in rapid development.
The growth rate of self-produced products was as high as 47%, and the demand for purchased products decreased due to the slowdown of nucleic acid detection equipment. In the first quarter of 2022, the sales revenue of the company’s self-produced products reached 275 million yuan, with a year-on-year increase of 47.17%. The company’s self-produced products are mainly used in covid-19 epidemic prevention and control, maternal and child health and other fields. Since the first quarter of 22, due to the increase in the demand for covid-19 nucleic acid detection, the rapid growth of relevant plastic sampling consumables, nuclear acid extraction reagents and other products has driven the business of self-produced products to achieve brilliant performance; 22q1 company realized a revenue of 401809 million yuan from purchased products, a year-on-year decrease of 25.49%, which is expected to be mainly affected by the slowdown in the demand for nucleic acid detection equipment. We believe that with the improvement of nucleic acid detection ability, the penetration rate of nucleic acid detection projects is expected to increase rapidly. After the epidemic eases, the company’s nucleic acid reagent is expected to accelerate the volume.
Profitability was significantly improved under the scale effect. In the first quarter of 2022, the company’s sales expense rate was 12.97%, a year-on-year decrease of 1.35pp, the management expense rate was 8.87, a year-on-year decrease of 4.45pp, the financial expense rate was – 0.14%, a year-on-year decrease of 0.24pp, the R & D expense rate was 1.94, a year-on-year decrease of 2.43pp, the period expense rate was 21.69%, a year-on-year decrease of 6.04pp. Thanks to the rapid expansion of Q1 revenue scale, the company’s period expense rate was significantly optimized; 22q1 company’s gross profit margin was 69.27%, with a year-on-year increase of 3.32pp and net profit margin of 36.52%, with a year-on-year increase of 5.64pp. The increase of gross profit margin in 22q1 is mainly due to the low base in the same period last year.
Profit forecast and investment suggestions: we predict that the company’s revenue from 2022 to 2024 will be RMB 3.358 billion, 2.835 billion and 3.083 billion, with a year-on-year increase of 26%, – 16% and 9%, and the net profit attributable to the parent company will be RMB 956 million, 665 million and 727 million, with a year-on-year increase of 12%, – 30% and 9%, corresponding to EPS of 325, 226 and 247. Considering that covid-19 epidemic brings great development opportunities to the company’s nucleic acid testing products and services, non covid-19 business is expected to continue to grow rapidly, long-term market influence is expected to continue to improve, and maintain the “buy” rating.
Risk warning events: the risk of new product research and development, the risk of policy change, the risk of intensified market competition, the risk of continuous uncertainty of covid-19 epidemic, and the risk of delayed information or delayed update of the public data used in the research report.
