\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Matters:
The company released the first quarterly report of 2022: Q1 achieved a revenue of 300 million yuan (+ 33.02%), a net profit of 623388 million yuan (+ 15.06%), and a net profit of 588027 million yuan (+ 9.97%) after deduction. Meet expectations.
Ping An View:
Q1 achieved rapid growth, increased investment and reduced profit growth
2021q1 company’s difficult to imitate drug business has centralized delivery of validation batches, realizing a revenue of 226 million yuan, accounting for more than 23% of the annual revenue. Under a relatively high base, 2022q1 company still achieved an increase of 33.02%, and the overall gross profit margin was high, reaching 57.48% (+ 3.53pp). It is estimated that the molecular block and tool compound business with high gross profit margin at the front end of the company has achieved ideal growth.
In order to match the rapid expansion of each business segment, the company continued to strengthen promotion and R & D, recruit more talents and implement equity incentive. Affected by the increased investment, the expense rate of the company increased during the reporting period. Among them, the sales expense rate is 6.63% (+ 1.16pp), the management expense rate is 12.27% (+ 4.12pp), and the R & D expense rate is 11.16% (+ 3.11pp). Excluding the incentive amortization factor in the expense rate, it is estimated that the growth rate of non attributable net profit deduction is more than 16%.
We actively responded to the impact of the epidemic and continued to promote new orders and new production capacity
Recently, covid-19 epidemic has been repeated all over China, causing a certain degree of negative impact on the start-up and logistics of enterprises. The company actively responded to the changes and mitigated the impact on Shanghai laboratory through the presence of some employees in the workplace. If the follow-up epidemic situation in China can be improved in a short time, the company is expected to catch up with the business quickly and avoid having a significant impact on the growth of the whole year.
The company continues to take orders and build production capacity. During the epidemic period, the number and amount of orders further increased. New laboratories and factories will be built one after another. Hefei and Yantai laboratories are currently in partial operation and are expected to be fully put into use in the first half of the year. The ADC production line and factory in Ma’anshan will also be opened from June to August to further improve the company’s own capacity of back-end business.
Maintain a “recommended” rating. The company has sufficient business volume and is actively increasing investment to improve the supply capacity of various businesses. The rise of short-term cost rate belongs to the normal situation during the construction period, so it continues to be optimistic about the follow-up development of the company. Maintain the forecast of EPS of 3.64, 5.66 and 8.53 yuan from 2022 to 2024, and maintain the “recommended” rating.
Risk warning: if the customer’s needs cannot be met, the company may lose orders or even customers; There are uncertainties in the R & D and sales of drugs. If the progress is lower than expected, it may affect the profitability of the company; During the period of high-speed expansion, if the improvement of the company’s management ability can not keep up with the rhythm, the operation quality may be affected.
