\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
The income grows rapidly, and the expense affects the net profit. The growth rate is less than that of the income
The company released the first quarterly report of 2022. In the first quarter, the revenue was 300 million yuan, with a year-on-year increase of + 33.02%, and the net profit attributable to the parent was 62 million yuan, with a year-on-year increase of + 15.06%. After deduction, the net profit attributable to the parent was 59 million yuan, with a year-on-year increase of + 9.97%. The growth rate of revenue is in line with expectations, and the early investment in management and R & D makes the growth rate of net profit less than that of revenue.
The investment of early management and R & D expenses affects the net profit
The gross profit margin of the company in 2022q1 was 57.48%, a year-on-year increase of + 3.53 PPS, mainly due to the increase in the proportion of seasonal fluctuations of the company’s front-end high gross profit business. At the same time, the company actively promoted team building and improved management efficiency and supply capacity. The company increased investment in R & D and management expenses to support product line expansion and new business layout, with a year-on-year cost rate of + 7.84 PP. Among them, the sales expense rate was 6.63%, year-on-year + 1.16 PP, the management expense rate was 12.27%, year-on-year + 4.12 PP, the financial expense rate was 0.38%, year-on-year -0.55 PP, and the R & D expense rate was 11.16%, year-on-year + 3.11 PP. With the increase of gross profit rate and period expense rate at the same time, the net profit rate was -3.43 PP year-on-year. We expect that the overall net interest rate is expected to gradually recover in the second half of the year with the initial cost investment and the landing of Ma’anshan factory.
The construction of production capacity has been continuously promoted, and the back-end business is expected to accelerate
The company continues to promote the construction of R & D and production base: in 21 years, the R & D office area has increased to more than 60000 square meters, including 32000 square meters in Shanghai; Ma’anshan industrialization base phase I project is designed to have an annual production capacity of more than 680 cubic meters. It is planned to build five production workshops, which are shared by difficult to imitate drugs and cdmo business. It is expected that the project will be gradually completed and put into operation in the second half of 2022; An ADC high activity production line of Anhui Haoyuan R & D center has been completed and put into operation in 2021 and obtained the drug production license. Two new production lines will be released in 2022. After the company’s own API and intermediate production base meeting GMP standards is put into operation, the back-end business is expected to accelerate its development.
Optimistic about the future development of the company and maintain the “buy” rating
The year-on-year net income of the company is expected to be RMB 1.34 billion and RMB 1.26 billion respectively, corresponding to the company’s net income of RMB 1.26 billion and RMB 1.25% / 2.26% in 2029, respectively, which are respectively in line with the company’s expected net income of RMB 1.34 billion and RMB 1.25% / 2.26% in 2029, respectively. Optimistic about the sustainable development of the front and rear end of the company and maintain the “buy” rating.
Risk tips
Covid-19 epidemic affects production and sales, and the sales of some products are less than expected due to the progress of customers’ projects, exchange losses, patent infringement and the loss of high-quality professional and technical talents.
