\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Event: Shanghai Haoyuan Chemexpress Co.Ltd(688131) released the first quarter report of 2022. In 2022q1, the revenue was about 300 million yuan, with a year-on-year increase of 33% and a month on month increase of 10%. Q1 was relatively limited by the impact of the epidemic, and the revenue slightly exceeded the expected upper limit; The net profit attributable to the parent company was about 62 million yuan, with a year-on-year increase of about 15% and a month on month increase of 33%. The gross profit margin was 57.48%, with a year-on-year increase of 3.53 PCT; The net interest rate was 20.59%, a year-on-year decrease of 3.43 PCT and a month on month increase of 3.51 PCT.
Comments:
R & D investment continued to rise. During the reporting period, the company’s R & D investment was about 33 million yuan, with a year-on-year increase of 85% and revenue accounting for 11.16%. About 205 new technicians were added in Q1. The R & D team continued to expand and consolidate the core technology platform. The number of front-end new molecular blocks and tool compounds is increasing, the proportion of back-end innovative drug projects continues to increase, and the company’s ability to overcome difficulties is steadily strengthened.
Profitability can be expected, and the company’s operation will continue to improve. The total cost during 2022q1 is about 90 million yuan, with a year-on-year increase of about 41 million yuan, an increase of 85%. From the second half of 2021, the company began to layout the expansion of R & D site and the construction of cdmo capacity. The team scale expanded rapidly. 355 people were added in the first quarter, an increase of 23.89% over the beginning of the year. The personnel cost and management expenses increased accordingly, which had a certain impact on the profit side of 2022q1. The profit growth rate was lower than the revenue growth rate. The company expects that the input-output ratio will increase significantly during 2022q2, various financial indicators are expected to improve, and the profitability is expected to continue to improve.
After the resumption of work and production, customer demand will rebound. The epidemic control in Shanghai has varying degrees of impact on the transportation of goods and the use of products by downstream customers. However, most front-end products are just needed in the field of pharmaceutical research and development, which will not lead to the disappearance of demand due to the epidemic, and the corresponding demand will be rebounded and released after the epidemic recovers. Under this influence, the company’s income is expected to rise later, but the income in 2022q2 is still closely related to the rhythm of the epidemic. Therefore, the company actively prepares goods in foreign warehouses to minimize the impact.
Profit forecast: it is estimated that the company’s revenue from 2022 to 2024 will be RMB 1.428/2.058/2.890 billion respectively, with a year-on-year increase of 47.3% / 44.2% / 40.4%. The net profit attributable to the parent company was 283 / 406 / 576 million yuan respectively, with a year-on-year increase of 48.1% / 43.6% / 41.8%, corresponding to EPS of 3.80/5.46/7.75 yuan and PE of 34 / 24 / 17 times from 2022 to 2024.
Risk factors: the R & D Progress of new products is less than expected; Customer expansion was less than expected, the number of new orders was less than expected, the progress of new production capacity was less than expected, and the recovery of the epidemic was less than expected.
