\u3000\u3000 Nanjing Vazyme Biotech Co.Ltd(688105) (688105)
Nanjing Vazyme Biotech Co.Ltd(688105) is a leader in China’s molecular reagent industry. Since its establishment, the company has independently built a protein targeted transformation and purification platform, a high-performance antibody discovery platform based on single B cells, a multi system heavy histone preparation platform and a quantum dot modification coupling and multi index joint detection technology platform around the R & D and product development of functional proteins such as enzymes, antigens and antibodies, Established core industry barriers. Relying on the technical platform, the company has developed a rich product series and reached a market share of 4% in the field of molecular reagents in China in 2020. It is a leader in the field of molecular reagents in China.
Driven by reagent raw materials and POCT dual core, the company’s performance growth is strong: China’s in vitro diagnosis industry is developing rapidly. According to the data forecast of toubao Research Institute, the market scale of the upstream reagent raw materials industry is expected to reach 13.76 billion yuan in 2023; According to the blue book of China’s medical devices (2021), the market scale of POCT industry will reach 15.7 billion yuan in 2023, with large market space. At the same time, Chinese companies are facing great opportunities due to the National Encouragement of import substitution and domestic innovation. In the field of reagent raw materials, the company entered earlier and accumulated sufficient technology. It has completed the transformation of more than 200 kinds of enzyme raw materials, established tens of thousands of enzyme mutation base libraries with application scenarios, and formed a solid technical barrier. During the covid-19 epidemic, the company performed well with excellent product strength and production capacity. In 2020, the revenue of this sector was nearly 1 billion yuan, A year-on-year increase of over 300%; In the field of POCT, the company actively arranged differentiated competition and made its covid-19 detection products contribute strong performance increment to the company through rapid response during the covid-19 epidemic. In 2020, the revenue of this sector exceeded 500 million yuan, with a year-on-year increase of more than 1900% and strong performance growth.
R & D and marketing efforts drive the recovery of conventional business, and the new business layout opens up new growth space: Nanjing Vazyme Biotech Co.Ltd(688105) the company actively expands antibody screening service, packaged integrated service, cellular immunity business and mRNA vaccine raw material business with the help of the good reputation and brand image accumulated during the epidemic, and makes full use of the scientific research advantages accumulated by the company in this process, Accelerate R & D and actively cut into the customer supply chain. In the process of expanding its business model, the company has continued to make efforts in sales and R & D. the sales expenses and R & D expenses in 2020 have increased by 100% compared with 2019. We believe that R & D investment and marketing network expansion will accelerate the recovery and growth of conventional business. It is expected that the revenue of conventional business will exceed 700 million yuan in 2021, with a year-on-year growth rate of more than 80%; New business will open up new growth space for the company, and the growth potential of the company in the post epidemic era can be expected.
Profit forecast, valuation and rating: the company is a leading enterprise in China’s molecular scientific research reagents. At the same time, it responded quickly during the epidemic period and its routine business recovered rapidly in the post epidemic era. We predict that the company’s EPS from 2021 to 2023 will be 1.73/2.12/2.58 yuan, a year-on-year increase of – 15.92% / 22.45% / 22.19%, and the current price corresponds to 57 / 46 / 38 times of PE in 21-23 years, covering for the first time, Give the company an “overweight” rating.
Risk tips: the risk that the R & D and listing progress of domestic vaccines is less than expected, the risk of repeated covid-19 epidemic, the risk of intensified market competition, and the risk of stock price fluctuation of new shares
