\u3000\u3 Guocheng Mining Co.Ltd(000688) 621 Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) )
Event overview
The company announced the first quarterly report of 2022: the operating revenue was 148 million yuan, a year-on-year increase of 54.49%, the net profit attributable to the parent was 33 million yuan, a year-on-year increase of 62.65%, and the net profit deducted was 31 million yuan, a year-on-year increase of 54.97%.
Analysis and judgment:
The performance exceeded market expectations and the profitability gradually improved
The company achieved an operating revenue of 148 million yuan in 22q1, with a year-on-year increase of 54.49%. The performance continued to grow at a high speed and exceeded market expectations. The net profit attributable to the parent company in 22q1 was 33 million yuan, with a year-on-year increase of 62.65%. In addition to being driven by the high-speed growth of the income side, we judged that it was mainly due to the improvement of profitability under the scale effect, that is, the gross profit margin of 22q1 was 56.59% (year-on-year increase of 2.07pct) and the net profit margin was 23.55% (year-on-year increase of 1.33pct). Looking forward to the future, the company continues to strategically overweight the innovative drug cro business, while deeply cultivating the generic drug cro business, and gradually forms a cro supplier with multi business whole process layout of “generic drug cro + innovative drug cro + independent products”. It is expected that the performance will continue to show rapid growth in the future.
We will continue to strengthen investment in research and development of independent products and continue to strengthen the development and reserve of independent products
The company’s R & D investment in 22q1 was 16.79 million yuan, with a year-on-year increase of 73.91% and accounting for 11.35% of revenue. We judge that the company will continue to strengthen its own product R & D reserves and contribute flexibility to the future performance growth of the company.
Performance forecast and investment suggestions
The company continued to deepen the generic drug cro business, while strategically overweight the innovative drug cro business and gradually enriching the layout of independent products contributed to the core growth power for future performance growth, and raised the early profit forecast, that is, the revenue in 22-24 years was adjusted from RMB 695 / 970 / 1351 million to RMB 709 / 999 / 1399 million, and the EPS was adjusted from RMB 1.91/2.60/3.55 to RMB 1.97/2.83/3.93, corresponding to the closing price of RMB 92.87/share on April 28, 2022, and the PE was 47.19/32.81/23.62 times respectively, Maintain the company’s “buy” rating.
Risk tips
(1) risk of loss of core technical backbone and management; (2) The generic drug cro industry has uncertain risks in the future; (3) The future of clinical cro business and bioanalysis business with strategic layout is uncertain; (4) Exchange rate fluctuation risk; (5) Impact of novel coronavirus epidemic situation.
