\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event overview
The company announced the first quarterly report of 2022: the operating revenue was 1.443 billion yuan, a year-on-year increase of 165.77%, the net profit attributable to the parent was 382 million yuan, a year-on-year increase of 333.53%, and the deduction of non net profit was 381 million yuan, a year-on-year increase of 406.20%.
Analysis and judgment:
The profit side exceeded market expectations, benefiting from the continuous delivery of large orders and the continuous expansion of pipelines
The company’s operating revenue and net profit attributable to the parent company in 2022q1 increased by 165.77% and 333.53% year-on-year. The revenue side met the previous performance forecast and the profit side exceeded the previous performance forecast.
(1) the company’s API cdmo business achieved an operating revenue of 1.433 billion yuan, with a year-on-year increase of 173%, benefiting from the gradual delivery of major orders received by the company in the early stage and the company’s continuous pipeline expansion. The company continued to strengthen market promotion and business expansion in 22q1, with 230 signed customers, 347 signed order products (excluding J-star, a year-on-year increase of 26%), 56 API products served (a year-on-year increase of 40%), and the overall number of customers and service products continued to show an upward trend.
(2) the company’s net profit attributable to the parent company was 382 million yuan, with a year-on-year increase of 333.53%. After deducting the loss of about 30.4 million yuan in new business and about 3.58 million yuan in three joint-stock companies, the profit of its API cdmo business was 416 million yuan, with a year-on-year increase of about 290%, and the net profit margin of its main business reached 29.02%, with a year-on-year increase of 9.34pct. We judge that the core benefited from the increase of gross profit margin and the decrease of expense rate during the period under the effect of scale, that is, the gross profit margin of 2022q1 was 48.94%, The year-on-year increase was 8.55 PCT, the period expense rate was 18.39%, and the year-on-year decrease was 6.22 PCT.
Continued strategic layout of cgtcdmo business and preparation cdmo business the company continued strategic layout of cgtcdmo business and preparation cdmo business, and its personnel continued to grow rapidly, i.e; The total number of employees in gene cell therapy cdmo business reached 324, an increase of 10% over the end of 2021 and 172% over the same period last year; The total number of employees in the preparation cdmo business reached 178, an increase of 14% over the end of 2021 and 158% over the same period last year. The company’s 22q1 preparation cdmo business achieved an operating revenue of 1.57 million yuan, a year-on-year increase of 969%; The cdmo business of gene cell therapy achieved an operating revenue of 7.85 million yuan, with a year-on-year increase of 953%, showing a rapid and large-scale growth
Performance forecast and investment suggestions
Maintain the early profit forecast, that is, the revenue in 22-24 years is RMB 7.100/79.00/8.300 billion respectively, and the EPS is RMB 2.68/3.10/3.33 respectively, corresponding to the closing price of RMB 71.2/share on April 28, 2022, and the PE is 26.61/22.97/21.38 times respectively, maintaining the “buy” rating.
Risk tips
The risk of loss of core technical backbone and management, the risk of intensified competition, the risk of loss of core technical personnel, the risk of exchange rate fluctuations, the impact of the novel coronavirus epidemic on the expansion of business outside China, and the execution of covid-19 orders were lower than expected.
