\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 76 Bgi Genomics Co.Ltd(300676) )
Event: on April 24, 2022, the company released the performance report of the first quarterly report of 2021 and 2022: in 2021, the company realized an operating revenue of 6.766 billion yuan, a year-on-year decrease of 19.42%; The net profit attributable to the parent company was 1.462 billion yuan, a year-on-year decrease of 30.08%; Net profit after deduction of non return to parent was 1.358 billion yuan, a year-on-year decrease of 33.71%. In the first quarter of 2022, the company realized a revenue of 1.43 billion yuan, a year-on-year decrease of 8.52%; The net profit attributable to the parent company was 330 million yuan, a year-on-year decrease of 37.06%.
Q1 performance in 2021 and 2022 met expectations, and non covid-19 business grew steadily
In 2021, the company's revenue was 6.766 billion yuan, a year-on-year decrease of 19.42%, mainly due to the decline of global covid-19 nucleic acid kit and detection unit price, the high base of covid-19 related business in 2020, and the year-on-year decrease of performance in 2021. In terms of routine business, in 2021, the company's income from infection prevention and control was RMB 1.158 billion, with a year-on-year increase of 73.01%. Macrogenomics detection was implemented in the hospital, and pmseqdatician pathogen expert analysis system and pmeasydoctor pathogen group big data analysis kit were launched, with a total of nearly 200000 people detected. The company's reproductive health income reached 1.192 billion yuan, a year-on-year increase of 1.24%, covering 156 diseases, including common genetic metabolic diseases, deafness, thalassemia and so on. The company's revenue from tumor prevention and control was 380 million yuan, with a year-on-year increase of 8.12%. Tumor MRD customized detection products were listed and sold in the Chinese market. In the first quarter of 2022, the company's revenue was 1.43 billion yuan, a year-on-year decrease of 8.52%, mainly because the settlement of some Hong Kong businesses in the first quarter was affected by covid-19 epidemic, and the revenue has not been recognized.
The internationalization strategy continued to advance, and the conventional business gradually increased the reserves of overseas products
The company has deepened its overseas business. At present, it has covered more than 100 countries and regions around the world, and has cooperated with more than 3000 overseas medical and scientific research institutions in Europe, America, Asia Pacific and other regions. In terms of covid-19 business, the company's covid-19 testing products have covered more than 180 countries and regions around the world, and nearly 100 "fire eye" laboratories have been launched overseas. Covid-19 business helps the company establish direct cooperative relations with governments, multinational corporations, foundations and non-governmental organizations in many countries, and gradually extends the application of covid-19 business to the development of conventional business. In terms of routine business, the company has carried out the strategic planning of "front store and back factory", and has established overseas localized IVD production plants, including IVD plants in Ethiopia, Africa and Saudi Arabia, committed to providing regional public health value closed-loop services. In terms of product approval, in 2021, many products of the company were approved with EU CE access qualification, including colon cancer auxiliary diagnosis and detection, lung cancer ctDNA detection, thalassemia detection, automatic PCR analysis system, etc. In India, the company's non-invasive prenatal gene testing products have obtained access qualification; In Saudi Arabia, the company's four products have been approved for listing, including thalassemia gene, colorectal cancer, lung cancer and neonatal genetic metabolism screening and testing.
Profit forecast: the company is a leading enterprise in precision medicine. Due to the spread of covid-19 epidemic and the demand for testing, the company will increase its revenue from 4427 and 4751 to 5.834 and 6.225 billion yuan in 20222023. It is expected that the revenue in 2024 will be 6.792 billion yuan, and the net profit in 20222024 will be 1.035, 1.135 and 1.263 billion yuan. The current share price corresponds to PE of 24.22, 22.09 and 19.85 in 20222024, which will be upgraded to "buy" rating.
Risk tips: covid-19 epidemic progress is uncertain, R & D is less than expected, exchange rate change is less than expected, and overseas business promotion is less than expected.
