\u3000\u3 Guocheng Mining Co.Ltd(000688) 133 Shanghai Titan Scientific Co.Ltd(688133) )
Event: on April 27, 2022, the company released the annual report of 2021 and the report of the first quarter of 2022. In 2021, the company achieved a total operating revenue of RMB 2.164 billion, a year-on-year increase of 56.32%, a net profit attributable to the parent of RMB 144 million, a year-on-year increase of 40.09%, and a net profit deducted from non attributable to the parent of RMB 124 million, a year-on-year increase of 35.88%. In 2022q1, the company achieved an operating revenue of 582 million yuan, a year-on-year increase of 41.87%, a net profit attributable to the parent company of 19.43 million yuan, a year-on-year increase of 25.55%, and a deduction of non attributable net profit of 16.15 million yuan, a year-on-year increase of 32.75%.
The performance basically met expectations and maintained high growth for five consecutive quarters. From the revenue side, the company's 21q1-22q1 achieved operating revenue of 410 million yuan, 513 million yuan, 580 million yuan, 661 million yuan and 581 million yuan respectively, with a year-on-year increase of 103.02%, 61.84%, 50.57%, 37.67% and 41.87% respectively. Since its listing, the company has maintained a year-on-year high growth trend for five consecutive quarters. From the profit side, the growth rate of the company's net profit attributable to the parent company is slightly slower than that of the operating revenue, mainly because it involves the accrual of equity incentive expenses. If the incentive payment expenses are excluded, the company is expected to achieve a net profit attributable to the parent company of 164 million yuan in 2021, with a year-on-year increase of 59.6%, which basically matches the growth rate of the revenue side.
Balanced development of various businesses and obvious advantages of integrated platform. In 2021, the company's businesses developed in a balanced way: (1) scientific research reagents: the overall revenue was 614 million yuan, including 226 million yuan of high-end reagents of independent brands, with a year-on-year increase of 67.42% and a gross profit margin of 54.15%; The general reagent of independent brand was 114 million yuan, with a year-on-year increase of 38.14% and a gross profit margin of 38.15%; The third-party brand high-end reagent was 274 million yuan, with a year-on-year increase of 92.81% and a gross profit margin of 16.67%. (2) Special chemicals: the overall revenue was 803 million yuan, including 587 million yuan of self owned brand special chemicals, with a year-on-year increase of 51.08%, the gross profit margin was 11.96%, and 216 million yuan of third-party brand special chemicals, with a year-on-year increase of 58.76% and the gross profit margin was 10.14%. (3) Scientific research instruments and consumables: the overall revenue was 688 million yuan, including 154 million yuan of independent brand scientific research instruments and consumables, with a year-on-year increase of 139.58% and a gross profit margin of 27.43%; The third-party brand scientific research instruments and consumables reached 534 million yuan, with a year-on-year increase of 46.97% and a gross profit margin of 14.93%. (4) Laboratory construction and scientific research informatization: the overall income was 58 million yuan, a year-on-year decrease of 19.08%, and the gross profit margin was 58.47%.
The product end and the sales end make synchronous efforts to maintain a continuous expansion trend. (1) Product side: in 2021, the company continued to introduce third-party brands and enrich the company's product matrix. By the end of 2021, the company had launched more than 3.5 million SKUs; At the same time, the company has continuously strengthened the construction of independent brands, added more than 5000 new products for independent chemical reagents, made new breakthroughs in the field of biological reagents represented by serum, culture medium and enzyme, and added 16 series and more than 300 products for independent instrument consumables. (2) Sales side: in 2021, the company initially established a warehousing and distribution service system covering total warehouses, regional central warehouses and urban service warehouses in 17 cities across the country. The traditional advantageous region east China increased by 51.24% year-on-year, and the warehousing and distribution system in North China and South China was improved, with a year-on-year growth rate of 122.10% and 66.32% respectively. In 2021, the company's sales personnel reached 318, an increase of 89 over the same period last year, a year-on-year increase of 38.86%. From the perspective of customer structure, biomedicine and new materials are the key industries covered by the company. The proportion of biomedicine customers reaches 35.55%, and the proportion of new material customers reaches 39.72%. New cooperative Xinda biology, Yili Group, Zhejiang Orient Gene Biotech Co.Ltd(688298) and other important strategic customers are added.
Investment suggestion: we estimate that the company's operating revenue from 2022 to 2024 will be 3.081 billion, 4.320 billion and 5.909 billion respectively, the net profit attributable to the parent company will be 207 million, 292 million and 402 million respectively, the corresponding EPS will be 2.72 yuan, 3.83 yuan and 5.28 yuan respectively, and the corresponding PE will be 50.4 times, 35.8 times and 26.0 times respectively, giving the investment rating of buy-a.
Risk warning: covid-19 epidemic uncertainty risk; Risks of intensified industry competition; Risk of dependence on upstream suppliers.
