\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Shanghai Haoyuan Chemexpress Co.Ltd(688131) released the first quarter report of 2022. In 2022, Q1 company achieved a revenue of 300 million yuan, a year-on-year increase of 33.02%; The net profit attributable to the parent company was 62 million yuan, a year-on-year increase of 15.06%; The non net profit attributable to the parent company was 59 million yuan, with a year-on-year increase of 9.97%; EPS0. 84 yuan.
The high growth of Q1 revenue of the company is in line with expectations, with steady growth on the profit side and more investment on the expense side
The company's Q1 revenue growth of more than 30% is relatively bright in the current epidemic situation. The growth rate of profit side is slightly slower. Considering the high base of profit last year (Q1 profit is the highest in the four quarters of the whole year), the steady growth of Q1 is in line with expectations. In 2022, Q1 company's expense side investment was large, especially the management expense (increased by 100.2% compared with the same period last year) and R & D expense (increased by 84.5% compared with the same period last year). The gross profit margin of the company in 2022q1 was 57.48%, an increase of 3.53pp compared with the same period last year (53.95%), which is a leading level in the industry and reflects product barriers. The company's operating cash flow decreased, mainly due to the large investment in production projects at the beginning of the year and the company's continuous expansion of product lines occupying more working capital. In the follow-up, we continue to pay attention to the cash flow and look forward to the improvement of cash flow after the production capacity is put into operation.
The company attaches importance to R & D and continues to enrich its product line. In 2021, the R & D investment reached 103 million yuan, a year-on-year increase of 59.65%, accounting for 10.67% of the revenue. In 2022, Q1 company's R & D expenditure was 33 million yuan, with a year-on-year increase of 84.54%, accounting for 11.16% of revenue, and its R & D efforts continued to increase. The company has accelerated the expansion of the product line available for tool compounds and molecular blocks. At present, the cumulative number of products has exceeded 58600 (42000 molecular blocks + 16000 tool compounds), an increase of more than 21000 compared with the same period in 2020, and more than 14000 self-developed products; More than 110 integrated compound libraries were constructed. The output of R & D achievements has continuously improved the company's service ability in the R & D market.
The company's capacity construction continued to speed up. 1) High activity ADC capacity continues to expand. A high activity production line in Anhui Haoyuan has been completed and put into operation, and the drug production license has been obtained in July 2021; Two new production lines will be released successively in 2022; One stop cdmo platform developed and produced by Zhenhao biological ADC is being renovated; 2) The construction of large-scale production of APIs and intermediates continued to advance. The main works of phase I of five production workshops in Ma'anshan industrialization base have been basically completed, and the designed annual production capacity is about 680 cubic meters, which is expected to be gradually released in the second half of 2022. We expect that in 2022, the company's extensive accumulation and full layout on multiple platforms will gradually release value. The molecular blocks and tool compounds with high difficulty and added value are customized and synthesized at the front end, and the back-end API sector undertakes and expands the front-end import value, so as to realize the integrated and coordinated development of the front and back ends.
Profit forecast and investment rating. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 269 million yuan, 394 million yuan and 558 million yuan respectively, with a year-on-year increase of 40.8%, 46.4% and 41.7% respectively, and the corresponding PE will be 36x, 24x and 17x respectively. We are optimistic about the development of the company for a long time and maintain the "buy" rating.
Risk tips: brain drain risk, company capacity shortage risk, etc.
